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Will your premiums increase?
It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
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: -
- How much will the premium be?
- Your premium reflects the level of cover you want and how long you want to be insured for. It also reflects the risk to the Insurance Company that you may make a claim. This risk is conditioned by your age, sex, occupation, health record and life style etc.
- Will your premiums increase?
- It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
- Will your medical history affect your premium?
- Yes, your medical history is a very important factor.
- 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.
If you have a “Reviewable” policy your insurance company reviews its premium at regular intervals - usually interval of between 1 and 5 years. This interval does vary between insurance companies and you should check their literature. At the Review date, your insurer has the right to increase your monthly premium and as you get older, increases will become more probable and larger.
As you might have predicted, when you first 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 expect Reviewable policies to 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.
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- Is the price you’re quoted, the price you pay?
- Is it better to have Guaranteed or Reviewable premiums?
- If you’re asked to supply more information or go for a medical, will the premium increase?
- Could you end up paying more for insurance than someone else the same age?
- Will your medical history affect your premium?
- Why is insurance more expensive for smokers?
- If your premium is “Rated”, what does that mean?
- If your insurer asks for a higher premium because you are Rated, is it worth applying to another insurance company?
- Are there any extras to pay?
- What is the Finance & Leasing Association?
- Go to menu of Frequently asked Questions about Mortgage Life Insurance
- Go to menu of Frequently asked Questions about Life Insurance
- Go to menu of Frequently asked Questions about Critical Illness Insurance
- Go to menu of Frequently asked General Questions