What is the difference between a Guaranteed and Reviewable life insurance policy?

With a “Guaranteed” policy the insurance company guarantees never to increase the premium.

With a “Reviewable” policy the insurance company reviews your premium regularly (normally every 2 to 5 years but the reviewing interval does vary between insurance companies) and the company has the right to increase your premium at the review date.

As you would expect, a “Reviewable” policy will initially have a lower premium than an equivalent “Guaranteed” policy. But the price of “Reviewable” policies can soon catch up and, in the longer term, are more expensive.

Some insurance companies have stopped offering “Guaranteed” rates for life insurance policies which include Critical Illness cover. This because they have experienced a higher claim rate than they originally expected. However, if you can find a “Guaranteed” life insurance policy which includes critical illness cover, you should seriously consider it.

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