Stephen Strange is a 40-year-old doctor and is seeking to purchase life insurance. He has the option of choosing either stepped premium or level premium. Stephen is a conservative person; he likes to plan his income and expenses ahead and he wants long term reassurance and thus intends to hold the cover in the long term (For more than 10 years). 

Required:

Stephen has come to you, his financial adviser seeking advice on whether to opt for level premium or stepped premium. Which type of premium would you recommend to Stephen? (Considering only the details given in the above scenario).  Justify your advice.

Answer rating: 100% (QA)

I would recommend Stephen Strange to opt for the level premium option for his life insurance The reasons for this recommendation Planning and Stability Stephens conservative nature and preference for ... View the full answer