Question relating to Term Assurance wit CI Cover

Mr_Lancaster

Hello,

I am in the process of moving house, the move will increase my mortgage so I am taking out a new term assurance policy with CI cover to cover my wife and I for the extra amount of the mortgage.

In the terms and conditions it states that the policy is reviewable every 5 years and I don't like the sound of that as obviously it is likely the payments will increase as we get older due to extra risk.

My question is, is this standard? Or can I request that we be quoted for a non-reviewable quote? If this is possible I would expect the premium will be higher.

Also just to get an idea of how competitive the company is, the premium for the insurance offered is £20.75 a month, this covers my wife and I for life and CI cover of £45000.

We are both non-smokers and I am 29, my wife is 27.

Thankyou for your time.

dunstonh

you have reviewable, guaranteed or yearly renewable. Ignore the reviewable and yearly renewable quotes.

Some providers wont offer guaranteed. These are mostly the tied providers but the whole of market retail products do.

You dont say the number of years the policy is for so we cant tell if its expensive or not. If it was 25 years, then a guaranteed policy would be around £13-£14pm with reviewable at £12-£13pm

jasonking

If the quote you have states it is reviewable then the premiums should not increase just because you are older...this will already have been taken into account. The premiums will only rise if the insurance company has got its overall sums wrong and experiences higher than expected claims...this is still a risk though which is why guaranteed premiums are higher.

I suggest you get a quote for guaranteed premiums as well and question whoever gave you the reviewable quote to find out under what circumstances premiums could rise...then make a decision