Stepped vs Level Premium Calculator
Lifetime cost of stepped versus level premium.
NZ$
NZ$
Level becomes cheaper from year
17
Lifetime saved by level ≈ $11,415.15
| Cumulative stepped (yr 25) | $33,915.15 |
|---|---|
| Cumulative level (yr 25) | $22,500.00 |
| Saved by choosing level | $11,415.15 |
| Crossover year | 17 |
About this calculator
Stepped premiums start cheap but climb every year as you age. Level premiums start higher but stay flat. Crossover — the year a level policy becomes cheaper cumulative — is usually 10–15 years in.
- If you only need cover for 5 years, stepped wins.
- If you need cover for 20+ years (typical for life or trauma to age 65), level wins decisively.
- Level premium is locked at entry age — taking it out at 30 is materially cheaper than at 45.
Frequently asked questions
Can I switch later?
You can convert stepped to level at most insurers but the rate is set at conversion age, not original entry age — so the early advantage is lost.
Related calculators
Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.