What is a key difference between guaranteed and reviewable income protection plans?

The correct answer focuses on the premium structure of guaranteed versus reviewable income protection plans. In guaranteed income protection plans, the premiums are fixed and remain the same throughout the life of the policy, providing policyholders with certainty about their financial commitment. This structure allows individuals to budget effectively as they know their premium amounts will not change over time.

In contrast, reviewable income protection plans have premiums that can be adjusted by the insurer after a specified period, usually based on factors such as changes in claims experience or overall insurance market conditions. This means that the policyholder may encounter fluctuations in their premium costs, which can create uncertainty in financial planning.

The other options do not capture the essential distinction between these two types of plans as accurately as the premium structure does. Coverage limits, while important, can exist in both types of plans without creating a fundamental difference in comparison. Similarly, circumstances under which claims are accepted and the duration of coverage might not show a stark contrast between guaranteed and reviewable plans, since they can both offer similar underwriting conditions and benefits periods. The significant aspect highlighted by the premium structure sets the guaranteed plans apart from the reviewable ones, making it a key differentiator for consumers.