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The Three Types of Life Cover Premiums.

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Level Premiums on Life Cover.
You can choose to pay a level premium for a level amount of life cover. That means the premium does not change until the guaranteed review date normally 5 or 10 years. The premium would only then change if the experience of the Life Company was worse on death claims than they expected.
Compulsory Annual Premium Increase
You can choose to pay an increasing premium for a level amount of cover. This is initially cheaper than Level premiums above but after about 10-15 years the premium on the CAPI catches up and starts to be more costly. Again at the guaranteed review date normally 5 or 10 years, the premium would only then change if the experience of the Life Company was worse on death claims than they expected.

CAPI Fixed Rate
The premium here is the for the CAPI is fixed at a rate which will increase every year ie 5%.
Age Rated
Age profiled CAPI can be chosen on lives normally over the age of 30 years. Premiums will start based on their current age and will increase every year by a rate which depends on age. Generally a lower rate if you are younger and a slightly higher rate if you are older.
Making Comparisons
As you can see premiums can differ for many reasons. Do not make the mistake to compare unless you are quite sure that you are comparing apples.

Don’t forget cover as a businessman.

Without the ability to earn an income you would have nothing and could lose everything. Some tips to consider are:

How long can the business survive if I am incapacitated
What are the overhead running costs of the business that I need to provide for
What could the future impact be on the business
What business expenses am I personally liable for
Check for definitions of accident and illness
Understand the exclusions and the occupational definition and extent of cover provided
Ensure that the waiting period is suitable.

comfortable retirement, buying a home, saving for a child’s education or starting a business.

The Financial Planner is a trained and qualified professional who uses the Financial Planning process to help clients figure out how to meet these goals. He will take a “big picture” view of your financial affairs and make recommendations based on your needs, lifestyle, - such as budgeting and saving, taxes, investments, insurance, business assurance, asset protection and retirement saving.

Financial Planning consists of six distinct steps. It is this six step approach that sets financial planners apart. Call today for a free six step analysis.

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