Stepped premium
A premium that recalculates each year and rises with your age.
Definition
A stepped premium is recalculated annually using your current age (and any new risk factors). It starts cheap when you are young and rises steeply in later life. Stepped is often the right choice if you expect to lapse the policy before retirement, or if cashflow at signup is tight.
Related topic comparisons
See also
- Level premium — A premium that stays at the same rate as you age (until a defined cap age or sum-insured event).
- Premium — The amount you pay the insurer (monthly, fortnightly, or annually) to keep cover in force.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.