Guaranteed or Reviewable Premiums?
Guaranteed Premiums:
Your insurance company guarantees not to increase your premiums, except for index-linking your policy benefits if your policy has indexation.
If your policy does not have indexation, your premiums will remain the same for the term of the policy.
Reviewable Premiums:
Your insurance company reserves the right to increase your premiums, even if you have never made a claim, if your insurance company has heavier-than-expected claims from their other customers.
There may be an initial period, for example, the first 10 years of a policy, during which your premiums are guaranteed not to be increased, but after which time, they can be increased.
(In theory, the premiums of a reviewable policy could be decreased.)
Reviewable premiums would usually be initially cheaper than guaranteed premiums, however, if you wish to retain your cover, you have no control over the future costs of a reviewable premiums policy.
