Royal London backs index linked policies to combat 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 ...