If you have a guaranteed policy the premium will remain
fixed over the term.
If you have a reviewable or index linked policy, your premium will increase
over the policy’s term.
If you have a reviewable policy the premium
will be regularly reviewed by the insurance company and increase over
time.
If you have a guaranteed policy the basic
premium will be fixed. You will find that the premiums for a guaranteed
policy are higher to start with, but over the term of your insurance,
guaranteed policies will work out the cheaper option. They also have the
advantage that you know exactly how much you will be paying.
If you have opted to have your policy Index Linked then
your sum insured will increase in line with inflation. Your premium will
then rise proportionately. The advantage of Index Linking is that it ensures
that the purchasing power of your sum insured remains constant.
You can have guaranteed policies that are Index linked and
reviewable policies that are index linked.