What is Indexation?

The idea behind indexation is simple. It's just an add-on to your policy that allows you to increase your cover in line with inflation on an annual basis.

It is important to consider adding indexation onto your new Insurance Plans where possible, especially when inflation rises significantly.

Just look at fuel costs or your weekly shopping bill to see how prices have crept up over the years.

With Indexation added to your plan, your monthly payments may go up a little each year of cover, but every time they do go up, so does your pay-out. You can ensure your cover is worth as much tomorrow as it is today, leaving loved ones less vulnerable.

With an indexed plan, your cover would keep its real value.

With cover increasing over time, this protects your future needs without any further medical underwriting - when cover is often more expensive and harder to get, especially if health issues have arisen as time has gone on.

When a claim is made, your loved ones receive a pay out of the same value in real terms as you thought when you set the plan up.

Indexation means your cover is protected against rises in the cost of living - making sure you have the cover you need now and in the future.

Can I opt out of increases?

Many policies allow you to opt out of indexation increases if you find the premium increases unaffordable.

However, if you opt out multiple times in a row, some providers may remove indexation from your policy.

But it's wise to select Indexation at outset and make the decision year on year.

How does indexation work?

Each year you should be contacted by the provider to consider the increase in your cover, confirming the new cover amount and premium.

It's your choice - you decide if you want to increase your cover. If yes, you don't need to do anything. The cover and premium will then increase from your plan anniversary.

If you don't want the increase, that's not a problem, you just need to let the provider know. Or if you are unsure what to do you can call us to discuss it before making a final decision.

Get in touch with our friendly and knowledgeable team for more information.