Increasing Life Insurance
What is Increasing Life Insurance ?
Increasing life insurance allows you to protect the sum assured you take out on your term life insurance against inflation. Most insurance companies will offer an increasing option when you start you lump sum life insurance or family income benefit plan.
It will allow your sum assured to increase each year in-line with inflation with your monthly premium also increasing.
Increasing life insurance aims to keeps the value of the sum assured the same as the policy started with. Increases are normally measured against the RPI (retail price index); although with some companies you can choose what percentage increase you have.
The increase in the sum assured and premiums will not take into account any other factor, such as health or occupation at that time. It will be based solely on your health and occupation at the outset of the plan.
Things to Know About Increasing Term Life Insurance
When you choose increasing life insurance it is important to be aware that although the increase to the amount of cover is capped at 10% a year, the amount your premium goes up to cover this could be more.
Whether this option makes a difference to your premium at the outset varies between providers. With some companies it makes no difference, With some it will add to the cost from outset.
With most companies that provide increasing life insurance the increase is optional; you will always be notified 60 days beforehand. You have to reply and inform the provider if you want to decline the offer and keep things the same for that year. If you do not reply to this affect the increase will happen automatically.
Increasing Term Life Insurance Advice
If you would like to find out more about the benefits of an increasing life insurance plan our professional advisors can advise you on all the different life insurance options. Simply complete our life insurance advice form and advisor will call you to discuss your protection needs.
