What is Guaranteed Insurability?

What is Guaranteed Insurability?

Guaranteed insurability aka the life events option lets you increase your level of cover without the need for medical information.

It is available on some life insurance, mortgage protection and income protection policies.

Guaranteed Insurability

However; you can only use the option in the event of one of the following occurring:

  • Starting a mortgage or re-mortgaging
  • Birth or adoption of child
  • Marriage
  • Change in job or promotion for a life assured

Do all insurers offer this benefit?

Some insurers will only offer it on life insurance or mortgage protection policies but there are insurers who offer it on both types of policies.

As always, read the small print!

Do all insurers have the same conditions when you want to increase your cover?

No, one of our providers will allow a policyholder to increase their cover by 20% every 3 years, up to 5 times without answering any medical questions.

How much does it cost to add guaranteed insurability?

Unlike a conversion option (guaranteed cover), you don’t pay any extra to add the life events option.

There are variations in each of provider’s terms and conditions as to how and when it may be exercised including:

  • Limitations of cover
  • Age restrictions
  • Types of products they will offer Guaranteed Insurability on.
  • Utilising the option within certain time-frames e.g. six months of the event occurring
  • Special terms may apply to increases

Maybe you’ll experience ill-health in the future and because of that you’ll presume you can’t get more cover.

But if you have guaranteed insurability built into your cover, this is not the case.

It’s something to seriously consider when choosing your insurer.

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