What happens to my premiums as I get older - do they increase?

Yes, Income Protection insurance premiums typically increase as you age, as the risk of disability and claims rises with age. Most policies use 'stepped premiums' (also called age-based premiums), where your premium increases each year on your policy anniversary as you move into a new age bracket. These increases can be substantial - it's common for premiums to double or triple between age 35 and age 55, with more significant increases after age 50. Some insurers offer 'level premiums' where the premium is calculated to remain the same for a period (often 5-10 years) or until a certain age. Level premiums start higher than stepped premiums initially but may be cheaper in the long run, though this depends on how long you hold the policy. There's also 'hybrid' structures combining elements of both. Beyond age-based increases, premiums can rise due to: overall rate increases applied by the insurer to all policies (subject to regulatory approval), increases in your coverage amount due to CPI indexation, or changes to your occupation or health status. The advantage of stepped premiums is lower cost when you're young, making insurance more accessible. However, you need to budget for significant increases over time. Many people find IP premiums become unaffordable in their 50s and 60s, precisely when their risk of disability increases. Reviewing your policy regularly and adjusting your waiting period, benefit period, or coverage amount can help manage costs as premiums increase.