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

Hot Topics

Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?: No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.
How long should I insure for?: It makes sense to keep the insurance in place for as long as you have a mortgage.
What is Mortgage Life Insurance?: Mortgage Life Insurance is sometimes called Mortgage Protection Insurance.
You want to ensure that your mortgage is paid off if you were to die or become seriously ill and could not work again. What sort of life insurance do you need?: You need either Life Insurance if you have an interest only mortgage, or Mortgage Life Insurance if you have a repayment mortgage. Then you need to add Critical Illness Insurance. You can do this all in one policy.
Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?: No! By law mortgage lenders are not allowed to charge a fee if you choose to shop elsewhere.

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).

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

We’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.