Should I choose a “Guaranteed” or a “Reviewable” Mortgage Life policy?

We recommend Guaranteed policies because they are better value in the long term, even though the Reviewable policy will be cheaper at the outset.

With a Guaranteed policy - premiums are fixed at the same amount for the term of the policy.

With a Reviewable policy - the premium will be reviewed and increased at regular intervals (normally at a rate slightly higher than inflation. The review will occur every 2 or 5 years).

Reviewable policies are cheaper at first, but because they increase over time, they usually end up being more expensive than Guaranteed policies.

We have noticed that a lot of insurance companies no longer offer Guaranteed rates for combined Life Insurance and Critical Illness policies, however if you shop around you should be able to find one.