What is Increasing Term Life Insurance?

The size of the payout depends on the unique circumstances of the policy holder as well as the type of policy. Any kind of life insurance policy is designed to pay out an amount of money upon the death of the policy holder.

Many people choose to opt for increasing term insurance because it is designed to protect against the inflation of cost of living. The policy suggests increasing the insured amount by a fixed amount each year to protect the value of your policy. It is often referred to as traditional increasing term life cover.

This could be a benefit if you’re seeking to:

  • Assist in preserving the living standards of your beloved family members.
  • Make payments for your children’s school or college tuition.
  • Keep making your mortgage payments.
  • What type of life cover do I need?

    If you’re not entirely certain, the Post Office provides a variety of other life insurance options to suit your needs. It might be a good idea to consider increasing your term life coverage.

    Decreasing term life cover

    If you are only concerned about paying off your repayment mortgage, you might consider looking at a decreasing term life cover, where the payout decreases over time in line with your debt. Alternatively, if you are only concerned about paying off your debt or other scheduled loan payments, you might decide to focus on paying off your mortgage.

    Level term life cover

    If you simply want to have money to cover the costs of your funeral or do whatever you want with it after you’re gone, a policy term level may be a good choice for you.

    Level protection could also be a choice if you want to insure an interest-only mortgage.

    Over 50s life cover

    If you are between 50 and 80, you are eligible for Life Cover 50s Over. Unlike term cover, which has a specific time period, this cover is whole-life. It is not designed to be used for a sizable debt or mortgage, so the potential payouts are significantly smaller compared to term policies.

    It can be used to help pay for a gift for your dearest and closest departure or funeral.

    Leaving your loved ones with a legacy can bring peace of mind today, so find out which life insurance is right for you

  • Life assurance policies.
  • Ways to get covered

    Post Office Life Insurance

    Choose among different levels of term insurance options, which can either decrease or increase, each customized to offer you a feeling of safety according to your specific circumstances.

    Discover more information.

    Post Office Over 50s Life Insurance

    The Postal Service may assist you in providing your family with a financial amount or contribute towards your funeral expenses if you are between the ages of 50 and 80.

    Discover more information.

    Post Office Increasing Term Life Insurance

    What’s it for? Providing for your loved ones and reducing the impact of inflation on the money you leave if you die
    Fixed cash sum pay-out? No, the pay-out will increase automatically each year in line with Retail Price Index (RPI) up to a maximum annual increase of 10%
    What’s the maximum pay-out? Up to £750,000** (depending on age)
    Age limit Ages 18-70
    Is terminal illness cover included?
  • Are health-related question asked?
  • Can I add critical Illness cover and children’s cover to my policy?
  • (additional cost will be applicable)
  • get a quote

    Other considerations

    It is likely that your monthly premiums will be higher for term insurance policies other than other forms of insurance, as term insurance offers the potential for the largest payout over time by periodically increasing the premiums each month.

    Optional extras with your Post Office Life Insurance

    Post Office Children’s Cover

    Obtain additional coverage for your children by adding them to your life insurance policy, ensuring peace of mind and extra financial protection for your loved ones.

    Discover more information.

    Post Office Critical Illness Cover

    Elevate your Post Office Life Insurance coverage by opting for the additional critical illness cover to obtain extra security and peace of mind regarding your financial well-being.

    Discover more information.

    Important information you should be aware of.

    Depending on your personal circumstances, such as the type and duration of coverage, your age, and whether you are a smoker, the amount of cash sum you are eligible for will be determined.

    Post Office Life Insurance offers coverage up to £750,000 for customers aged 18-70 who are residents of the UK. The minimum term is 5 years, and coverage must end before your 90th birthday.

    We will not pay a claim for death resulting from self-inflicted intentional injury or suicide, if it occurs within the first 12 months of the policy start date.

    If you are diagnosed with one of the four critical illnesses covered by our policy that meets our definition, Cover Illness Critical can provide additional financial assistance.

    The complete definition of terminal illness can be found in the Conditions and Terms. If the terminal illness is caused by intentional self-inflicted injury within 12 months from the start date of your policy, we will not pay a claim on terminal illness if you do not meet our definition of terminal illness.

    To request insurance coverage, you are eligible if you reside in the United Kingdom and are between the ages of 18 and 70. For more information on the limitations that are in place, please refer to the Terms and Conditions. Please note that your monthly payments cannot be refunded and your coverage may be terminated in the worst-case scenario. In the event of a claim, the amount we provide may be decreased or not reimbursed if you fail to disclose relevant information or provide incorrect responses to our application questions that impact your coverage. If you fail to keep your payments current under the policy, your coverage will be voided and we will not honor any claims.

    Post Office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration.

    Call us now

    For a quick quote or responses to your inquiries.

    0330 123 3947 open from 09:00 to 20:00 Monday to Friday.

    The operating hours on Saturdays are from 09:00 to 17:00.

    Already a customer?

    Still have questions?

    You can discover additional life insurance articles at Post Office My Family.

    How does increasing term life insurance work?

    If someone took out a life insurance policy that offered a payout of £100,000 today, the numerical value of that sum may diminish gradually over time due to the effect of inflation, resulting in the same amount of purchasing power.

    An expanding term life insurance policy takes into account inflation modifications, implying that the sum you will obtain as a payout escalates in line with the inflation ratio.

    You may experience a significant impact on life insurance policies as long as you have large amounts of money and extended lengths, although you may not notice the effect of inflation over brief periods of time and with small amounts of money.

    Typically, there is a yearly rise; nevertheless, the method employed to achieve this will differ depending on the provider. Insurance companies will occasionally elevate premiums in order to accommodate the augmented payouts.

    When examining historical figures, you can assess whether inflation is a factor that should be considered when making future plans. Nevertheless, this tool cannot forecast the future inflation rate; therefore, it is recommended to utilize the Bank of England’s inflation calculator to personally observe the impact of inflation.

    Why should I get increasing term cover?

    Considering an escalating term life insurance would be advisable if you are interested in this particular kind of policy. Opting for a long-term policy with a substantial payout may expose you to the adverse effects of inflation.

    In this scenario, the safeguarding of a payout against the long-term consequences of inflation can ensure tranquility, boosting coverage to shield the payout from the magnitude of your payment. This is crucial, whether it involves repaying debts or making a significant purchase.

    The decision of how much cover you intend for your life insurance payout will depend on what you intend to use the lump sum for when you’re no longer around. It could help pay off an interest-only mortgage, contribute towards living expenses or educational costs, give your kids a chance to get on the property ladder, or simply provide financial protection and adjustments against the increasing cost of living. Typically, these policies are term life insurance policies that increase the payout amount over time and offer a fixed rate.

    In order to mitigate this invoice, you could contemplate augmenting term life insurance if you are aware that you are obligated to settle a substantial sum of estate tax and possess a substantial property.

    Term insurance that grows is the scenario with a flexible payout that might necessitate this type of circumstance. Your personal appointment, or professional administrators of your estate, if you choose not to appoint your own, are instances of expenses linked to your demise that you may not have contemplated, such as your burial.

    Whatever your reasons may be, making early provisions can help you leave a legacy behind, giving peace and assistance to your loved ones.

    More details