When your client takes out Protect, they can choose to use the inflation option automatically or on request. The automatic inflation option works by routinely increasing the sum assured each year. Your client can tell us they do not want to accept any of the increases we offer.
If your client does not choose this automatic inflation option, we will write to offer an increase every year and they will need to tell us if they want to accept the increase.
We will continue to offer increases each year, no matter how many times your client declines them.
Automatic inflation option
We automatically increase the sum assured each year on all your client’s policies, without underwriting.
Your client can choose at the outset to increase the sum assured by the greater of 5% and the increase in the retail prices index (RPI). If the RPI increase is greater than 5%, the maximum increase we will allow is 10% each year.
When we increase the sum assured, we also increase the premiums. Your client has a right to cancel the automatic increase to the sum assured by writing to us within 30 days of the increase.
If your client declines the automatic increase in one year, we still automatically increase the sum assured in every subsequent year, unless they ask us not to.
Inflation option on request
Your client can increase the sum assured each year without underwriting, even if they did not choose the automatic version of the option. Every year, we write to ask if they would like to increase the sum assured. We also show the new premium for the increased insurance. We continue to offer this opportunity until the term ends.
Your client must let us know if they wish to accept the increase.
We offer to increase the sum assured at each policy review date by the greater of 5% and the increase in the RPI. The maximum increase we will allow is 10%.
For either version of the option, if your client would like to increase the sum assured by a lower amount, they can ask for any sum assured below the increase we have offered, without underwriting.
In some circumstances, for example for some whole life policies with rated terms, or for higher sums assured, we may exclude this option from the policy. We also have an overall maximum sum assured limit for increases under the policies. For further details about this please contact your Old Mutual Wealth Protection Specialist.