Specialist Advice On Life Insurance
Post date: January 4th, 2011 |
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It’s a fact of life that, year on year, the cost of living increases – so to make sure you continue to be adequately protected your life insurance cover needs to increase to.
Did you know that most life insurance companies offer you the option of linking the amount of cover you have to the consumer price index (CPI)? Which indicate that each year that the rate of the cost of living will increase (shown by the CPI), how much cover you happen to be insured for increases at the same rate.
As an example: In case you took out life cover of $100,000 in the year 2010 – without having relating it with the CPI – and claimed on that cover in the year 2040, you could receive $100,000 (that is guaranteed to be worth lower than it really is today). However, had your cover been linked to the CPI, it would have increased to $242,000, assuming an average 3% annual increase in the CPI over those 30 years.
Obviously, you have to remember that in case your cover is related to the CPI, your premiums will also be linked, and can therefore increase every year that the CPI increases. Nevertheless, this option is something to think about, especially when there is higher than normal inflation.
Specialist Life Insurance Advice
Future proofing your life cover should be a key part of any insurance plan. To ensure that you have all the facts and information we recommend consulting a specialist insurance adviser who can give you all the options, information and advice relevant to you and your family.
This article is written by Internet New Zealand Holdings Ltd, internet marketing and online conversion specialists. Get a fast, free and independent life insurance quotes and medical insurance quotes from major companies in New Zealand.