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

A Guaranteed policy is usually better value overall but a Reviewable policy will be cheaper at the outset.

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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Will the Mortgage Payment Protection Insurance pay your interest and capital?: You decide how much you want the insurance to pay out each month if you’re off work. So make sure your cover is sufficient to meet your full monthly repayment to your mortgage provider.
Will Mortgage Payment Protection Insurance pay out immediately you make a claim?: As long as you are off work for 30 days - you can then make your claim.
How much should you insure for?: The rate you pay is charged per £100 of income you need. So, you should insure for the next £100 above the cost of your monthly mortgage repayment.
Should you have a “Guaranteed” or a “Reviewable” policy?: A Guaranteed policy is usually better value overall but a Reviewable policy will be cheaper at the outset.
Should I include Terminal Illness Insurance?: Terminal Illness Insurance is generally included at no extra cost on all Mortgage Life, Life and Critical Illness policies.

With a Guaranteed policy the premium you pay will remain fixed for the duration of the policy.

If you have a Reviewable policy, the premium will be reviewed and increased at regular intervals (for example, every 2 or 5 years).

Youâ€™ll find that Reviewable policies initially have lower premiums but, over time, Reviewable policies usually work out more expensive than guaranteed policies.

Weâ€™ve found that many Insurance Companies have now stopped offering Guaranteed rates for combined Life Insurance and Critical Illness policies. However it is still worth looking for such policies. If you can find a Guaranteed Mortgage Life Insurance and Critical Illness policy for you at a price you can afford, it would definitely be worth thinking about.