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What is indexation?

Indexation future-proofs the value of your Life Insurance cover. This means it's worth as much when you need to claim, as it is today.

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Indexation isn’t as scary as it may initially seem. It’s just an add-on to your Life insurance policy that allows you to increase your cover in line with inflation.

Why should I add indexation to my policy?

It is important to consider adding indexation onto your Life insurance plan. It's important especially when inflation rises significantly. Just look at fuel costs or your weekly shopping bill to see how prices have crept up over the years.

With Indexation added to your plan, your monthly payments may go up a little. But, every time they do go up, so does your pay-out. So, you can ensure your cover is worth as much tomorrow as it is today. 

Indexation example:

If you had £100,000 worth of Life cover without an indexed plan:

The value of cover in today’s terms in 20 years’ time (with inflation averaging 3%) would be £55,370. This is half the amount of cover you originally started with. Watch our short video to explain what this could mean for you.

With an indexed plan, your cover would keep its real value.

What's in it for me?

  • We provide an upfront discount on your premium when you select Indexation. This makes your cover more affordable - up to 3% on Term and 5% on Whole of Life Plans.
  • Your cover increases over time. This protects your future needs without any further medical underwriting - when cover is often more expensive and harder to get.
  • When a claim is made, your loved ones receive a pay out of the same value in real terms as you thought of all those years ago.
  • Indexation protects your cover against rises in the cost of living. This makes sure you have the cover you need now and in the future.
  • Indexation is flexible. You can decline increases in cover at any time. But, we do ask you accept at least one increase in cover every three years. If you decline three consecutive increases, we remove indexation. Your benefit then converts to level cover.
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How does indexation work?

  1. Each year before the anniversary of your plan, we will be in touch. We'll invite you to increase your cover and confirm the new cover amount and premium.
  2. It's your choice, you decide if you want to increase your cover. If yes, you don’t need to do anything. 
  3. We will then increase your cover and premium from your plan anniversary. If you don't want the increase, that's not a problem, you just need to let us know.
  4. If you decline three consecutive increases, indexation will be removed. Your plan and will then revert to level cover.
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