1 For the average family, the cost to raise two children is around $310 a week in today's dollars, or 23% of the gross household income of $1,324 a week. 2 With these competing priorities, you may find it hard to fit premium payments into your budget. Have you considered reducing the cost of insurance using annual premiums?

Case study

Michael and Maggie are a married couple who have two young children. Maggie is a qualified accountant working full time earning $100,000 p.a. Michael, on the other hand, is self employed and his income fluctuates from month to month, Like many, they have large financial commitments, including their mortgage and saving for their children's education. Michael's sporadic income and achieving their financial goals makes budgeting essential.

As the main breadwinner, insurance is important for Maggie. She wants the most comprehensive cover possible to protect Michael and their children just in case something happens to her. She has life insurance, TPD, trauma and income protection.

Michael and Maggie can pay her premiums as one annual amount or as monthly payments. If they pay annually, it costs 8% less each year than the accumulated monthly payments.