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Additional covers and options
Indexation
Why Indexation?
Indexation enables your clients cover to increase each year with no further underwriting. With Indexation, their cover is protected against rises in the cost of living, making sure they have the cover they need now and in the future.
Inflation means a reduction in the value of cover over time. If inflation returns to the 10 year average for Retail Prices Index - at around 3% - it will mean that £100,000 of cover will be worth almost half that in 20 years' time, when measured in today’s prices.
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Why should you speak to your clients about Indexation?
The benefits for your clients
- At the point of claim, your client’s benefits have the same value in real terms
- We're making indexed cover more affordable by providing an upfront discount on indexed plans. Our Indexation rules also provide more value to them in a lower inflation rate environment
- We’ve made our Indexation as flexible as possible. Your client can decline increases in cover at any time but we do ask that they accept at least one increase in cover every three years. After three consecutive declines, Indexation is removed and their benefit converts to level
- When added to a plan with Wellness Optimiser or Vitality Optimiser, they can control their premiums and make savings by monitoring their health and getting fitter. They could therefore offset some of the cost of Indexation
- For example, if a client with Wellness Optimiser reaches Select Wellness status, they'll receive a 1% annual premium discount, which could help offset the rise in their premium due to inflation.
Not just good for your clients
The benefits for you
- Establish relationships with your clients with cover that could have a real impact on their lives
- Not only does Indexation maintain the value of cover for your clients, it can also significantly increase the commission that you receive. You could boost your commission by up to 40%.
Protecting your clients against inflation is as easy as 1, 2, 3
Try our Premium Comparison tool to compare the cost on our Term and Whole of Life Plans
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Indexation is automatically offered at a discount.
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Before policy anniversaries, we'll write to invite your clients to increase their cover.
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If your client chooses to increase their cover, they don't need to do anything. We'll increase their cover and premium from their anniversary. If they don't want the increase, they just need to let us know.
How the premium increases work
| Published inflation | Premium increase | If aged over 80 |
|---|---|---|
| 0% and below | 0% | 0% |
| 0% - 2% | RPI plus 1.5% | RPI plus 5% |
| 2% - 8% | RPI plus 2.5% | RPI plus 5% |
| 8% and above | RPI plus 3.5% | RPI plus 5% |
Where to next?
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Whole of Life
Our Whole of Life provides your clients with affordable cover with no compromises
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Additional covers and options
Our additional covers and options that allow you to tailor your client's protection plan
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Wellness Optimiser
Rewarding your clients for understanding and improving their health
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