Indexation is a complex-sounding term that is used to describe a relatively simple concept in the world of insurance. Here we’ll break down exactly how it can benefit you.
In a nutshell, indexation refers to a benefit payment that increases in proportion to the cost of living.
If the cost of living increases by 5% in a given year, an indexed insurance benefit will also increase by 5% so that you, or the listed beneficiary, – don’t lose out on purchasing power when the cost of living increases. Inflation Protection automatically increases your Life Insurance cover amount by 5% every year, or by the Consumer Price Index -whichever is greater.