What’s life insurance with increasing cover?
If you have a life insurance policy with increasing cover, the level of cover, and 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.
The policy pays out a lump sum if you die during the policy term, or are diagnosed with a terminal illness and aren’t expected to live longer than 12 months. The policy will only pay out once, so if you make a successful terminal illness claim, a second claim can’t be made. There’s no cash value at any time.