Do income protection premiums rise with age?

I was wondering whether income protection insurance premiums can go up with age? I can afford the premiums now but I’m worried it might get too expensive if the monthly cost rises as I get older.

Question asked by Robert Cox
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 02084327333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Tom Conner

The importance of ensuring that you can afford Income Protection in the long run

This is a very important question and one that is often overlooked by people seeking cover. It is vital that the policy is affordable not only today but in the long-run also, especially as the risk of illness or injury rises with age.

When looking for a traditional (long-term) income protection plan covering your earnings against the risk of accident or sickness there are a number of options as to how the premiums can be structured (all payment protection policies have reviewable premiums), which are as follows:

Guaranteed Premiums

With this option the premiums are fixed over the life of the policy, thus ensuring the insurer doesn’t have the right to alter how much you pay. This option usually has higher initial premiums but often works out the lowest cost option over the life of the policy.

Reviewable Premiums

With this premium structure the insurer is free to make alterations to the premiums over time. Although the premiums are initially lower there is the risk that the monthly cost may become too high at older ages.

Age Banded Premiums

Many of the Friendly Societies use this premium structure where the monthly cost rises significantly with age, sometimes by over five times. Many people take out these plans thinking they are getting the ‘best deal’, only to find out the policy becomes very expensive and often unaffordable down the road.

Which option should I choose?

Where possible we usually recommend guaranteed premiums so the policy is affordable long-term and the insurer doesn’t have the right to make changes. However, for very manual workers it may be necessary to have age bounded premiums to gain own occupation cover.

Over the life of the policy it is sometimes the case for white-collar workers that the total cost of age-bounded premiums can work out lower. Drewberry uses a calculator to establish the total cost of each option when recommending the most suitable choice to our clients.

income protection
 
guaranteed premiums
 
age
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Income Protection Insurance Questions

 
When looking for income protection quotes what does ‘monthly benefit’ actually mean, is this...
 
I was looking into an income insurance plan for myself and I’ve come across executive income insurance,...
 
I want some insurance to cover my salary if I am too ill to work as I don’t have much sick pay....
 
I am going to take out income protection insurance but wasn’t sure what is best reviewable or guaranteed...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Matthew Draper
11/07/2018

Excellent service at convenient times of the day specified by me. All product options were clearly outlined and I am very pleased.

Paul Devine
10/07/2018

First class service. Helped me through the process from start to finish. Egle and Francis were very professional and talked me though all my options. Once the policies were set up, the after care after was also first class. Highly recommend. 5 stars all day long.

Josip Marjanovich
03/07/2018

Victoria was very helpful about selection of suitable insurance. She always answered all questions in a timely manner.

We are rated 4.9/5 based on 1512 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.93 / 5 Average
652 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Anon
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Kym
Overall Rating
Tailored to my need and the staff gave very good service