Types of cover

Both our Life Insurance Plan and Critical Illness Plan can be bought with two different types of cover; you can choose from Increasing cover or Decreasing cover.

Increasing cover

As time goes by, it’s expected that the cost of living will go up – it’s what’s known as inflation. By choosing increasing cover you can help protect against the future effects of inflation.

How does our increasing cover work?

  • You choose how much cover you’re going to have at the outset.
  • Increasing cover is where the amount that the policy pays out will increase each year in line with any increase in the Consumer Prices Index (CPI). If your cover increases so will your premium. The increase automatically happens on an annual basis. If the CPI does not increase, or you choose not to accept the increase then your cover amount and premium will remain the same. The maximum the cover amount can increase by is 10% and your premium could increase by a maximum of 15%. Please note that in the event of an increase your premium will increase at a higher percentage rate than your cover amount. For an explanation of how this works please see the Life Insurance Plan Policy Summary and Critical Illness Plan Policy Summary.
  • Our Life Insurance Plan and Critical Illness Plan can both be bought on an individual or joint basis.

What is the CPI?

The Consumer Prices Index (CPI) is the UK's main measure of inflation.

The CPI measures hundreds of things we spend money on – and tracks how these prices have changed over time. The inflation rates are expressed as percentages. For example if CPI is 3%, this means that on average, the price of products and services we buy is 3% higher than a year earlier.

Decreasing cover

When you’ve worked hard for something, it just makes sense to protect it. Our homes are often one of the biggest investments we make during our lifetimes, and there’s a lot to be said for knowing your family may not have to worry about not being able to stay in their home if something unexpected happened to you. By choosing decreasing cover you can help to protect a repayment mortgage.

How does our decreasing cover work?

  • You choose how much cover you’re going to have at the outset.
  • The cover amount is paid as a lump sum and decreases each month broadly in line with a repayment loan, such as a mortgage, using a fixed interest rate.
  • The premiums are calculated when you take out the policy and remain the same over the length of the policy, this could help with your budgeting.
  • Our Life Insurance Plan and Critical Illness Plan can both be bought on an individual or joint basis.

You can find out more about the life insurance and the critical illness cover we offer by clicking on the links below.

Life Insurance Plan

Find out more

Critical Illness Plan

Find out more

Or, not sure about what you need to protect? Find out more

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