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Increasing-term insurance

Alternatively some people may wish to have their potential payouts rise every year, perhaps to reflect increasing inflation.

With an index-linked policy you can choose to link your payout directly to an inflation measure such as the Retail Prices Index (RPI) or Consumer Prices Index (CPI), or you can simply arrange for the extent of cover to rise by a fixed percentage every year.

As the cover is scheduled to rise every year, your premiums could be higher than for level-term and “standard” term insurance.

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