Guaranteed or Reviewable Rates

As mentioned earlier, Whole of Life policies offer a guaranteed sum assured and premium for the first 10 years and are then subject to review. Whilst a small number of Companies are now offering guaranteed rates for the life of this type of policy they can be expensive as a claim will of course occur providing the policy is kept in force.

For level and decreasing term, family income benefit and income protection, both guaranteed and reviewable terms are available. Guaranteed are the most expensive at outset but will not change during the term of the policy. Reviewable rates are cheaper but are subject to review usually at the end of the first 5 years and often annually thereafter. There is obviously an unknown overall cost with reviewable rates compared to guaranteed ones. 

The initial difference between the two, as with all insurance rates will depend on a number of factors including sum assured, length of term, age of the applicant at outset, sex and smoker status.

It is also important to note that initial quotations for such products assume acceptance at standard terms but are subject to underwriting with regard to health, occupation and pastimes.