Index-linked policies costing 'thousands of pounds' extra

In For a Penny podcast suggests

Adam Saville
clock • 7 min read

Consumers paying 1.2% to 3% on top of inflation for premiums, In For a Penny podcast research reveals

Consumers could be paying thousands of pounds more for index-linked insurance products due to companies adding charges to premiums beyond the level of inflation, research by In For a Penny podcast has suggested. Typically, the level of protection cover for index-linked life insurance, income protection (IP) or critical illness (CI) increases in line with inflation, with customers opting to increase their level of cover each year by the rate of inflation or other measures to ensure their insurance stays in line with cost of living. However research by the personal finance podcast has f...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Half of UK adults support scrapping of IHT

Half of UK adults support scrapping of IHT

71% oppose 40% IHT rate increase

Patrick Brusnahan
clock 05 October 2026 • 1 min read
Two in five homeowners have no protection: MetLife

Two in five homeowners have no protection: MetLife

25% said they could not afford cover

Jaskeet Briah
clock 02 October 2026 • 1 min read
Major life events likely to impact retirement savings for 62% of adults

Major life events likely to impact retirement savings for 62% of adults

Scottish Widows findings

Jaskeet Briah
clock 02 October 2026 • 2 min read