Why cover?
  • affects 1 in 4 women / 1 in 5 men before retirement
  • 94.1% of the critical illness claims are paid
  • protect yourself and your family if you get seriously ill
Why us?
  • get the cover that will pay when you need it
  • save up to 35%, cover from £5 a month
  • free, fast and without obligation quotes
Insurers: Aviva, Legal & General, Liverpool Victoria, Scottish Widows, Vitality, Zurich

Premiums Options You Have When Buying a Critical Illness Cover

When you apply for your critical illness cover, you have the freedom to choose the kind of premiums that go with it. Your premiums can be guaranteed, reviewable or renewable.

Guaranteed Premiums

This means that your premium will not change throughout the policy's life, unless this is a result of:

  • a legislated change in premiums that is made applicable to all related policies
  • an increase in the cover amount
  • adding new riders to the cover
  • any changes in the cover

Guaranteed premiums will mean higher premiums, especially at the start of the policy. However, you are assured that you will be paying the same premiums all throughout.

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Reviewable Premiums

This offers lower premiums as compared to guaranteed premiums. Usually, the premiums remain the same for the first five years of the plan. After that, the premiums are up for review every year or every five years, depending on the policy’s terms and conditions.

What happens in a premium review? The review will result in either the decrease or increase in the premiums paid as the company takes a look at factors such as:

  • new legislations covering the policy, such as tax laws
  • changed assumptions with regards to inflation, expenses, investment returns and taxes
  • claims experience, including the number, timing and cost of claims the company has paid out and are expecting to pay in the future
  • changed assumptions due to the advances in medicine

Renewable Premiums

With this, your premiums are up for review every renewal period. The increase in the premiums may be due to increases in your age or changes in the premium rate. Usually, further medical evidence based on age will not be required during the renewal.

What happens when the premiums are increased? If your premiums are increased, you can:

  • Give it your okay. If paying the increased premiums are okay with you, you don’t need to do anything. Updates will be made if you have direct debit arrangements.
  • Opt to pay the same premiums for a lower cover amount. You will need to inform the insurance company of this option within 30 days after you have been notified about the increase in premiums.
  • Cancel the policy. You can do this by simply stopping the premium payments.

Saving Up on Premiums

Know more about saving on your premiums by reading Save up on premiums: factors that affect your critical illness insurance premiums.

You may be also interested in additional tips to get more bang for your buck when buying critical illness insurance; then read Getting Critical Illness Cover on the Cheap.

Last updated on: 18.1.2013

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