Independent advice on private healthcare
How much does it cost?
- Which policy is right for me?
- How do I get a quote?
- Should I get insurance for my life insurance?
- Jargon explained
- The need for life insurance
- Decreasing or level term assurance
- What's in the small print?
- Inheritance tax on policy payout
- Types of cover
- What affects the price?
- What is life insurance?
The life insurance premium should be obvious when you get a quote.
Is it a fixed amount? If it isn't, the insurer could increase the premiums significantly as you get older.
Fixed premiums are a good choice for most people. They tend to start off slightly more expensive, but they're cheaper in the long run.
Fixed premiums are known as guaranteed. But watch out for a couple of sneaky wrinkles. Some guaranteed premiums are only guaranteed for the first five or ten years of the policy.
Some life insurance companies offer guaranteed rates, but when you check, the premium itself goes up as you get older, either every year or in age bands
Reviewable premiums are a nice way of saying that the insurer can increase the premium at every renewal -whether it is annually or every five years. You could cancel the policy, but you are unlikely to get any money back as they will argue that if you had died they would have had to pay up,
One solution is lump sum life insurance premiums, but as few of us can afford to pay ten or twenty years of premium all at once, not very practical. However, for short periods or funeral planning, it can make sense to pay a lump sum premium