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14 Apr 2024
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Legal & General

Do You Need Indexation on Life Cover ?

Protect your cover against the rising costs of living

Did you know that over half of term insurance policies do not offer indexation options? (Defaqto, November 2010.)

Indexation allows you to increase your cover each year without further underwriting. This will help to protect your cover against rises in the cost of living, making sure you have the cover they need now and in the future.

It's important to consider indexation, as with time things become more expensive, and also inflation proofed cover becomes increasingly beneficial as people get older and their needs and likelihood of suffering a serious illness increases. To take out new cover in the future would require further underwriting and premiums are likely to have risen.

Inflation in the UK has risen to 4.5% RPI. At 4% inflation, the value of cover will reduce to less than half its value in 20 years time.

Indexation Life Insurance offers many benefits:

Indexation life insurance will ensure that you benefits have the same value in real terms, and are not eroded by inflation.

You have the option to add indexation to your policy with no further underwriting and at no extra cost with some providers at the outset – so there's no downside.

You have the flexibility to decline an annual increase to your premium and cover without losing the right to further indexation increases with companies like Pruprotect. In fact, they will only remove future indexation once they've declined three consecutive increases.

Do you want Advice on Life Insurance ?

After you have compared the life insurance information on Go Direct if you would like life insurance advice, please complete our life insurance enquiry form and we will contact you to discuses your insurance needs. Alternatively Go Direct offer quick increasing life insurance quotes with our instant quote system.

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