Are My Premiums Guaranteed?
This depends entirely on the life insurance policy that you finally opt for. Most life insurance providers offer life insurance policies that offer guaranteed premiums. This means the amount that you’ll pay each month or each year for your life insurance cover is guaranteed, the costs of maintaining the policy will not change. This is clearly a good thing, as it makes budgeting straightforward. It also allows a degree of transparency in the pricing of life insurance policies – if you can get a better deal by shopping around and comparing-online for your life insurance – you can switch, knowing that your premiums won’t alter during the life insurance policy term.
Some life insurance providers also offer term life insurance policies with renegotiated premiums. These may appear cheaper at first, but the life insurance company will have the ability to review your cover options every few years, and modify your life insurance premiums (almost invariably upwards) as they see fit. As a result, it’s clearly very important to get the right life insurance policy for you. Life insurance policies with guaranteed premiums may be the best deal if you need life insurance for a longer period of time. However, if you only need cover for a short period, you may be able to make some substantial savings by opting for a life insurance policy with the option of renegotiated premiums. In most cases, your life insurance broker should be able to recommend the policy that best suits your individual needs.