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L&G advise indexation

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As inflation hits 3.3%, the highest level for many years, Legal & General is advising families with protection insurance to take out an option to mitigate against the potential pitfalls of rising inflation.


Many of L&G’s policies come with an indexation option, which is linked to the Retail Price Index measure of inflation.


The indexation means that the real value of the policy is relatively unaffected by inflation, with the sum assured rising in line with RPI, which is typically between 1% and 10%.


Family protection policies exist to safeguard families against earners falling ill, and thus being unable to work, or dying.


They offer a monthly sum to paid for a set period, to support families where the breadwinner is no longer capable of working.


Life insurance: News update: June 2008


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