Which is better - a ‘Guaranteed’ or a ‘Reviewable’ policy?

This is an important decision that you need to make before you agree to a life insurance policy. With a Guaranteed policy your insurance company guarantees that your insurance premium will always remain the same. A Reviewable policy means that your premium will undergo regular reviews (usually between 2 and 5 years) and the cost of your premiums will rise with inflation.

Whatever choice you make makes no difference to your insurance payout. The choice relates only to the cost of your monthly premiums. Reviewable policies are cheaper at first, and so people can choose them for this reason. However we have found that in the long term, Reviewable policies end up overtaking Guaranteed premiums and working out more expensive.

Not all insurance companies offer guaranteed rates, however it's well worth requesting one because if you are taking the policy out over a long term, you will almost certainly end up paying less.

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