Should you have a “Guaranteed” or a “Reviewable” policy?

When a policy is first started Guaranteed policies have higher premiums than Reviewable policies - but in the longer period Reviewable policies generally work out more expensive.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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The following might help you decide how much cover you need.
How much would you need to repay your mortgage, overdraft, loans or any credit card balances? The freedom that comes from being debt free does wonders for recovery
What level of critical illness cover could your children get?
Insurance companies normally impose a maximum limit on any claim under the policy’s provisions for children. Sometimes the limit will be lower of a percentage of your own sum assured (e.g. 25% or 50%) or a set amount (typically £15,000 or £20,000).
What information will be needed at the time of a Critical Illness claim?
For a Critical Illness claim to be successful the insurance company’s claims department will need evidence that you have been diagnosed as having one of the listed critical illnesses. This evidence will normally come from a Hospital Consultant who is a specialist in the illness which has been diagnosed.
Will a claim for critical illness affect any State Benefits?
No, it should not affect your claim for State Benefits.
What happens if your condition improves after making a claim on your Critical Illness policy?
Once the insurance company has paid you the money is yours to spend how you like. The policy is terminated and your insurer has no interest on how you live your life or indeed whether your condition improves or is healed.
With a Guaranteed policy the insurance company guarantees never to increase your premium at any time during the policy’s term.

With a Reviewable policy your insurer reviews your premium at regular intervals (normally every 2 to 5 years but this interval does vary between insurance companies).

At each review the insurer has the right to increase your premium. In our experience, Reviewable policies tend to experience price increases somewhat higher than inflation.

When a policy is first started Guaranteed policies have higher premiums than Reviewable policies - but Reviewable premiums can soon catch up. In our experience, Reviewable policies generally work out more expensive over time.

Just one quick point.

Many insurance companies no longer offer Guaranteed rates for combined Mortgage Life Insurance and Critical Illness policies. However, if you ask for a quote on a “Guaranteed” Life Insurance and Critical Illness policy - and the brokers can source one for you - you should seriously consider it.

Frequently Asked Questions related to the above topic.
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