TPD insurance offers two premium structures: stepped and level premiums, each with distinct advantages and disadvantages. Stepped premiums start relatively low when you're young and increase each year as you age and your risk of disability increases. The advantage is lower initial costs, making insurance more affordable when you're younger. However, premiums can increase significantly as you approach retirement age, potentially becoming unaffordable when you need coverage most. Stepped premiums are better if you plan to review and potentially reduce coverage as you age, or if you're only seeking short-term coverage. Level premiums are calculated based on your age when you take out the policy and remain relatively constant over time (though they can still increase due to inflation or insurer rate reviews). While level premiums start higher than stepped, they provide cost certainty and can work out cheaper over the long term, particularly if you maintain coverage into your 50s and 60s. Level premiums are advantageous if you plan to keep coverage long-term and want to lock in rates while you're younger. Some policies offer a hybrid approach. Your choice should consider your budget, coverage timeframe, and financial planning strategy. You can sometimes switch between structures, though this may require underwriting.