It is a life insurance policy that gives you the option to increase your payout later in life.

Increasing your payout at a later date is called guaranteed insurability. If you opt to use it, you will not need to provide your medical information again.

When can you increase your cover?

You can only increase your payout at specific times, which can differ depending on the insurer you choose.

Each insurer has a list of life events when you can increase your payout, such as:

  • Changing job, getting a promotion or retiring

  • Getting married or divorced

  • Becoming a parent

  • Moving home

  • Receiving a cash gift or inheritance

Most insurers only let you change your payout a set number of times, and limit the amount you can increase your payout to.

Warning: Increasing your payout will also increase your monthly premiums.

What policies does it come with?

Depending on the insurer, you could add guaranteed insurability to the following types of life insurance:

  • Level term: You choose a set payout and pay premiums for a fixed term.

  • Decreasing term: You choose a payout which reduces each month until the end of a fixed term.

  • Whole of life: You choose a set payout which pays out whenever you die, with no fixed term.