There are many advantages and disadvantages to both types of premium - however we believe
that in the medium to longer term, a Reviewable policy will cost you more than a Guaranteed
policy.
Reviewable policies do have the advantage of a lower premium at the outset and this appeals
to many people, especially if budgets are tight. However, Reviewable policies are reviewed
every 1 to 5 years, depending on the insurer, and at each review date they have the right
to increase your premiums. Naturally, your premiums will increase as you are older, and
therefore more likely to make a claim. It is this review system that virtually guarantees
that life insurance premiums for Reviewable policies will soon catch up and overtake.
With a "Guaranteed" policy the insurer guarantees that it will never to raise your monthly
premium so it's more expensive at first, but normally cheaper in the long run.
We recommend you seek advice from your broker before making your final decision.
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