Frequently Asked Questions

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You asked: Will the amount payable from my life insurance policy reduce over time?

It depends upon the policy you choose.

With a life insurance policy with decreasing cover, the cover amount reduces over time, broadly in line with a long-term loan or repayment mortgage. The longer a policy has been running, the less it will pay out on a claim. Your monthly payments will stay the same for the duration of your policy, unless you decide to make changes to the policy.

With a life insurance policy with level cover, the cover amount and your monthly payments stay the same for the duration of your policy, unless you decide to make changes to the policy.
If you choose to protect your level cover from inflation, the cover amount will increase in line with the Consumer Prices Index (CPI) – this helps to protect your policy against the potential rise in the cost of living in years to come. Your premiums will also increase annually. (Each year, the maximum amount your cover can increase by is 10%, and your premiums could increase by a maximum of 15%.)

If you choose to opt out of any changes to your cover amount, or there is no increase in the CPI, your premiums will remain the same. Your cover will not reduce over time.

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