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
 

Hot Topics

Is there a waiting period to receive payment on a Critical Illness claim?
All Critical Illness policies require you to survive a specified number of days following diagnosis in order to have a valid claim. The typical survival period is 28 days but some insurance companies have reduced this to 14 days.
What other benefits can be added to a Critical Illness policy?
Life cover is a must. Then consider Waiver of Premium and Indexation.
What conditions are considered critical?
Years ago Critical Illness policies only covered heart attacks, strokes and cancer but today the list of insured illnesses is truly extensive.
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.
Can you extend or increase your Critical Illness cover at a later date?
If you have a policy with a renewable option then yes, you can increase, or sometimes extend, your cover. If you do not have a renewable option then you cannot change your cover. These days only a few insurance companies offer policies with a renewable option.
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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