Is it better to have a Guaranteed or a Reviewable premium?

In the medium to longer term we believe that a Reviewable policy will cost you more than a Guaranteed policy. On the other hand Reviewable policies do have the advantage of a lower premium at the outset and this appeals to many people, especially if budgets are tight.

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

Could you end up paying more for insurance than someone else the same age?
Yes you might, because your age is only one of many aspects the insurance company takes into account when determining your premium.
Will your medical history affect your premium?
Yes, your medical history is a very important factor.
If my premium is “Rated”, what does that mean?
If your premium is “Rated” it means that the insurance company will only agree to insure you if you pay a higher premium than the one they originally quoted. This happens because, following receipt of your Application and any follow-up information they required, the insurance company believes you to represent an above average risk. (In extreme situations they will simply decline to insure you.)
Will your Mortgage Lender charge a fee if you buy your Life Insurance from someone else?
No! By law mortgage lenders are not allowed to charge a fee if you buy elsewhere.
Is a medical absolutely necessary?
No. Most people do not require a medical. Normally an insurer will only ask for a medical if you have existing health issues that cannot be resolved by a report from your GP or if you have applied for an especially high sum of insurance.
Firstly what is the difference between a Guaranteed and a Reviewable premium?

With a “Guaranteed” policy the insurer guarantees that it will never to raise your monthly premium.

With a “Reviewable” policy your insurer reviews its premium at regular intervals - usually interval of between 1 and 5 years. This interval does vary between companies and you should check their literature. At the Review date, your insurer has the right to increase your premium and as you get older, increases will become larger.

As you might have expected, at the outset when you start a policy, the premiums for “Guaranteed” policies are higher than the premiums for “Reviewable” policies. However, through the review system the premiums for Reviewable policies can soon catch up and overtake.

In the medium to longer term we believe that Reviewable policies will work out more expensive than Guaranteed policies. On the other hand Reviewable policies do have the advantage of a low start up premium and this appeals to many people, especially if budgets are tight.

Frequently Asked Questions related to the above topic.
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