Is it better to have a ‘Guaranteed’ or a ‘Reviewable’ premium?

There are a number of advantages and disadvantages to both types of premium - however we think that in the medium to longer term, a Reviewable policy will work out more expensive than a Guaranteed policy.

Reviewable policies are initially cheaper than Guaranteed premiums - so they appeal to people for this reason. Reviewable policies are normally reviewed every 1 to 5 years but this varies between the different insurance companies and at each review date they have the right to increase your premiums. Naturally, your premiums will also increase as you get older and as the likelihood of you making a claim increases. Therefore, the review system virtually ensures that Reviewable premiums will soon catch up and overtake the Guaranteed premiums.

With a “Guaranteed” policy you are 100% guaranteed that your monthly premiums will never increase - they are more expensive at first, but almost always cheaper in the long run.

It would be a good idea to seek guidance from the broker dealing with your application before making your final decision.