Can My Income Protection Premiums Increase Over Time?

Can an Income Protection insurer increase my premiums over time? I am worried that the premiums might rise too much in the future as I get older or if I need to make a claim.

Question asked by Priya Patel
10/04/2019

With Income Protection there are a number of options to choose from with regards to the insurer’s right to increase premiums over time. Please see below for the various options available.

Please note that these options are usually only available for long-term income protection plans. Payment protection plans only come with reviewable premiums as they are rolling contracts rather than providing cover for a specified term.

Guaranteed Premiums

With Long-Term Income Insurance policies it is possible to include the ‘guaranteed premiums’ option were the premium charged by the insurer remains unchanged irrespective of your age, number of claims made or the insurer’s overall claims experience.

Essentially, an Income Insurance plan with guaranteed premiums means the insurer has no right to change the amount charged over time based on these factors.

Reviewable Premiums

Short-term Income Protection plans (such as accident, sickness and unemployment policies) and some long-term plans come with ‘reviewable premiums’.

This means that the insurer does have the right to change your premiums based on general factors, such as the overall claims experience across all their customers and changes in interest rates, for example.

Also see: Guaranteed or reviewable premium income protection?

Age Rated Premiums

It is also worth noting that some insurers have ‘age-rated’ (or ‘low-start’) plans where the premiums increase with age. Take care with these plans as the premiums can look very attractive upon taking out the policy but can increase rapidly over time and work out much more expensive over the term of the policy because they increase in line with your age.

Compare Top 10 UK Insurers

Takes approx. 60 seconds
  • £
Verified by Norton Symantec icon
 Or Call Us

Frequently Asked Questions

Contact Us

Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

Cookies

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies including for ad personalization.

If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.

Deny
Approve