Increasing Term

Increasing Term Assurance

This type of cover protects you for a given term for an increasing level of benefit. The amount of life cover chosen at the outset rises annually by a predetermined factor, normally Retail Price Index (RPI). This is known as "indexation". The premium will also increase. By selecting indexation you are protecting the purchasing power of your selected benefit. This may be suitable for family protection although this would depend on individual circumstances and you should seek further advice.

works much like the level term insurance, except that the level of cover increases - and usually the premiums too.
worth considering if you are insuring for a long term, because increasing prices eat away at the value of a fixed level of cover.

Please be aware that in some cases this type of assurance is based on an assessment of the health of the applicant.

THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.

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