Learn About Age-Stepped and Variable Premiums

Variable Age Stepped premium is recalculated annually to reflect your age. It can seem much lower at the outset, but it increases every year at the policy anniversary, and you may see a steep increase in later years.

Variable premium will remain the same throughout the life of the policy unless you request changes. It is averaged over the expected duration of the policy taking into account your age increasing during that period. This can seem expensive up front but provides cash flow certainty.

However, that's not to say Variable premiums never increase. If you have selected indexation, your cover and premiums will increase in line with cost of living (CPI or 5%) and Variable premiums can still be subject to future insurer premium increases, stamp duties changes etc.

Insurer OnePath have written an article if you want to read more about this.