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

Why are the insurance prices on the Internet so low?
The Internet is undoubtedly the cheapest marketplace to buy insurance. There are two main reasons: -
Will your premiums increase?
It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?
We do not think so. Why? Read on.
Will you need a medical?
The answer really depends upon your medical history.
Can life insurance be arranged quickly?
The short answer is that the speed depends upon your personal details.
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.
Click below if you wish to read them: -