Increasing Cover

This type of policy is designed to increase the sum insured each year in line with the Retail Price Index, so cover maintains its value in ‘real’ terms. This counters the impact of inflation on the cover amount. The policy premium will also increase each year. This type of cover is also sometimes known as Indexed Life Insurance, or Increasing Life Insurance.

Increasing Cover pays out a cash sum if the person insured dies during the term of the policy, or is diagnosed as suffering from a Terminal Illness.

Once the sum insured has been paid out there are no further premiums to pay and the policy ends. The policy has no cash in value at any time.