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.
Is there any investment value in your policy?: No. Once the policy has come to the end of its term the policy simply ends. It’s a bit like house insurance!
When would normal Life Insurance be used in connection with a mortgage?: Term Insurance is another name for Life Insurance. Normal Life Insurance is used if you have an interest only mortgage.
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.