Royal London backs index linked policies to combat inflation

"Keeps pace with the real cost of living"

Hemma Visavadia
clock • 2 min read

Royal London has highlighted increasing need for customers to have index linked policies due to rising inflation.

Index linked policies allow the sum assured to be boosted in order to keep it in line with inflation, or by a fixed percentage each year. The insurer said that many customers often opt for the Retail Price Index (RPI) as the measure of inflation, but some select to increase their cover by a fixed amount, which is usually between 1% and 5%.   With prices at a record high, the provider has urged customers to consider inflation-proofing protection policies as a new step forward. For protection policies, which are typically taken out to provide cover for a prolonged period, if the sum ...

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 do not have a will: Canada Life

Half of UK adults do not have a will: Canada Life

61% of those who wrote their own will did not seek advice

Jaskeet Briah
clock 22 March 2024 • 2 min read
Aviva pays out £1.18b for individual protection claims in 2023

Aviva pays out £1.18b for individual protection claims in 2023

Over £413m paid out across group protection

Jaskeet Briah
clock 21 March 2024 • 3 min read
Beneficiary nomination used on 68% of Guardian's life insurance policies

Beneficiary nomination used on 68% of Guardian's life insurance policies

Accounted for 74% of life insurance claims paid

Jaskeet Briah
clock 20 March 2024 • 2 min read