We all know the cost of living increases over time. While your life insurance lump sum benefit may offer the cover you need today, will it still offer enough cover in a decade or two decade’s time? To allow for increases in inflation and cost of living, your cover will increase according to the Consumer Price Index (CPI), so that when your beneficiaries need to make a claim, it will still offer them the financial protection they need.

In order to cover the increased benefit amount, your premiums will also need to increase. However, you can choose to decline this increase each year at your anniversary.

Your premium will also increase each year as you get older due to your age, this is called a stepped premium.