As an adviser, you know the two main types of premium structures; stepped and level.
Stepped premiums at its most basic view is the cheaper option of the two initially, however it does increase year-on-year when taking into account your clients age and their increased susceptibility to injury, illness or death, increasing the risk of insuring.
Level premiums can be viewed as an opposite to stepped. Premiums are higher than stepped from the beginning, and generally don’t increase, or experience minimal increases in comparison to stepped. The other benefit is that clients' premiums are based on their age at the time they take out their policy (true level premiums).
Over the long term of a policy, the savings under level premiums are considerable, however having the available funds every year may be challenging for many. This is where a hybrid premium structure may be the right choice for your clients.