Life quote: your life will change – will your premiums?
So: you’ve found a life quote on the Internet. You’re happy with the level of cover it provides. You’re confident the premiums are affordable and competitive – but will they always be?
Can we save you money on your life insurance or critical illness?
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Depending on the type of policy your life quote involves, your premiums could change significantly in the future. Your life will inevitably change, too, so it’s not always unreasonable for the company making your life quote to leave the door open for future changes to the premium.
The two different phrases you will see when your premium is described in your life quote are:
- Guaranteed: this means the premium will stay the same throughout the life of the policy (it is ‘guaranteed’ not to change)
- Reviewable: which means the life company will review the premiums throughout the life of the policy, and inevitably raise them – usually every five to ten years
Many insurance experts advise choosing a policy with guaranteed premiums. Your life quote may show that the monthly cost will be higher to begin with, but over the term of the policy you will probably save money because reviewable premiums can increase dramatically the older you get.
Most term policies now operate with guaranteed premiums – although it’s worth pointing out that policies with reviewable premiums may be a good, cheap option for short-term cover (provided you replace them with a different policy when necessary!). Reviewable premiums may also be suitable for policies where you want the amount paid out on your death to increase with time.
If you are unsure about a life quote – what it involves and what it will cost – then it may help to talk to an expert.
Jump Money is a specialist in critical illness and life insurance cover and is happy to answer any questions you may have related to life insurance, life assurance, term assurance and life cover. The company will strive to fit an insurance package to the exact criteria you need in order to help you avoid buying products you do not need as well as helping you fully understand your purchase.
To find out more about how Jump Money can help you protect yourself and your belongings call now on 0845 8516262 or fill in an online quote form today.
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