The answer to this question depends upon whether you have a normal “Guaranteed” policy, a “Guaranteed indexed linked policy” or a “Reviewable” policy.

With a “Guaranteed” policy the insurance company guarantees that it will never raise your premium.

With a “Guaranteed index linked policy” the Life Company guarantees never to increase your premiums at a rate greater than which they increase you cover level. For more information on index linking click here “What are the most common optional extras available on policies?”

With a “Reviewable” policy the Life Company will review your premium after regular periods. The reviewing period can be between 1 and 5 years - but 2 and 5 years are the most common. The interval does vary between Life Companies and so you should check their key features documents. On the review date, the Life Company and reserves the right to increase your premiums and as you age, increases will become more likely and traditionally larger.

When you first start a policy, “Guaranteed” policies have higher initial premium than “Reviewable” policies do- but after several review dates the premiums for Reviewable policies can soon catch up.

In the medium to longer term we would expect Reviewable policies to work out as much more expensive than Guaranteed policies. However, Reviewable policies do have the advantage of low initial premiums and this is attractive to many people.
Loans