Contracts are deemed to have increasing premiums if these premiums change during the currency of the contract even in the event that the original assumptions in respect of mortality, expenses and other factors affecting premium levels do not alter during the currency contract.
Contracts are deemed to have non-increasing premiums if premiums do not change in the the event that the original assumptions made do not change during the currency of the contract. Therefore, a contract with a reviewable premium may be classed as non increasing because the intention is that premiums remain level throughout the term providing the original assumptions remain valid throughout the term.