Critical Illness / Permanent Health Insurance
Premium Basis

Guaranteed Rates

The guaranteed rates are set throughout the term of the plan, so you will not be required to pay any increased premiums to maintain your level of cover.

Reviewable Rates

Premiums will be reviewed on a regular basis. Following the review, premiums may stay the same, go up or go down.

Renewable Rates

The renewable rates for Flexible Financial Protection indicate that your premiums will increase every five or ten years depending on the renewal period you have chosen at outset, reflecting your increase in age and the premium rates at the time of renewal.

Indexation Increase Option

Benefits may be increased annually by the Retail Price Index (RPI), Average Earnings Index (AEI), or a fixed rate.

Your premiums will also increase based on premium rates and your age at the time of the increase.

The cost of providing this cover is either fixed for the term of the policy or fixed for an initial period and then reviewed, and is based on your age and state of health when the policy is taken out. Reviews of premiums will be based on the general claims experience of the life assurance company and will normally not take any changes in an individual’s health into consideration unless a change in terms is applied for. A decreasing term assurance with critical illness policy therefore offers a degree of financial security, although guaranteed rates tend to be expensive and reviewable rates, although less expensive initially, do not provide the security of knowing the premium liability throughout the term of the policy.

It is essential that you take professional advice prior to proceeding with any of the solutions outlined within the guides.

These guides do not provide individual tailored investment advice and are for guidance only. You should not act independently on the areas covered here but should seek professional independent financial advice. These guides represent our understanding of law and HM Revenue & Customs practice as at the date of publication. We cannot assume legal responsibility for any errors or omissions they might contain. Levels and bases of, and reliefs from taxation are currently those applying or proposed and are subject to change; their value depends on individual circumstances of the investor.