Life Cover – Premium Types

There are basically two types of premiums: Guaranteed Premium and Reviewable Premium.

Guaranteed premium means that the policy premium remains the same throughout the policy term which makes guaranteed premiums more expensive than reviewable premiums but comes with certainty of payments.

Reviewable premiums means that the premiums are to be reviewed periodically, typically every year or five yearly, meaning that premiums can increase following review. A reviewable premium may start cheaper than a guaranteed premium but would be more expensive, if not, unaffordable in the long run.