What’s life insurance with increasing cover?

If you have a life insurance policy with increasing cover, your monthly payments may increase over time, to help protect your cover amount from the effects of inflation.

With our Life Insurance Plan with increasing cover, the level of cover increases annually in line with the Consumer Price Index (CPI), a recognised measure of inflation, and your premiums will also increase annually to reflect this. The maximum amount your cover can increase by is 10%, and your premiums could increase by a maximum of 15%. If you choose not to accept the increase, or if the CPI doesn't increase, your cover and premiums will stay the same. If premiums stop, the cover will end.

The policy pays out a lump sum if during the policy term you die or are diagnosed with a terminal illness that meets our definition and are expected to live less than 12 months. Once a payment is made, your policy will end and no further claims will be paid.

This isn't a savings or investment plan - it only pays out on a successful claim. If premiums stop the cover will end.