Partners Life managing director Naomi Ballantyne said level premium policies would suit some clients who wanted a policy for a long time.

But she said a big problem with them arose when advisers were not aware of one of the key points.

The "cross-over point" was where someone on a level premium was paying less than they would, for their age, if they were on a stepped policy.

But the "break-even point" was where what they were paying was cheap enough that it offset the extra they had paid on premiums until they reached the crossover point.

"Unfortunately some of the illustrations/quotes being produced by providers do not make this differentiation clear meaning the client cannot see this easily for themselves," Ballantyne said.

"In these circumstances clients may be advised that they will be 'better-off' much earlier than will really be the case. As level premiums are significantly higher than YRT premiums at the start of the policy, compared with the same YRT cover, upfront commissions earned, which are based on premiums, will also likely be significantly higher even though the commission percentage rates for some providers is slightly lower for level than YRT premiums.

"There is a risk therefore that the benefits of level premiums could be misrepresented, either accidentally or knowingly)."

She said stepped premiums were the ultimate in "user pays".  "The client can get the maximum levels of cover for the premium they pay. As circumstances generally change over the life-time of the client, the types and amounts of cover they need are also likely to change."

Cecilia Farrow, of TripleJump said most people only had a finite level of income, from which they needed to maintain their lifestyles, grow their wealth, and pay down debt.

Extra money spent on level premiums for insurance would reduce the amount that was available for those other financial goals.

"Consumers are often shown graphs comparing the increasing premium of term insurance against the level premium and the breakeven point is shown when the lines intersect and from there onwards the consumer is told they are better off.

"However this does not take into account the foregone use of that money if had been used to retire debt or increase savings during the period of years that the level premium is more expensive than the term premium. This will take the crossover point out by quite a few years."