What Is Indexation?
Indexation is an extra cost option that is available on the majority of life insurance policies in the UK. It means that the amount of term life insurance cover you have opted for is linked to inflation rates. This means that the sum you have opted for will rise in level with inflation – so that £200,000 worth of life insurance cover, will still be worth £200,000 in real terms at the end of your life insurance policy term.
The difference this makes to you life insurance premiums is very small, and it adds additional peace of mind for you. It means that whatever happens you know your loved ones will have enough money to be financially secure, should the worst happen.