I met with a finanicial adviser today with a view to taking out a life assurance policy.
I was told that if I choose to have the policy indexed against inflation, the lump sum paid out when I die will rise at a rate of about 5% per year but that the premiums I will pay will rise a at a rate of about 8% per year. I queried the reason for the difference and I was told "that's just the way the policy works."
Is this difference typical of life assurance policies? Please comment.
I was told that if I choose to have the policy indexed against inflation, the lump sum paid out when I die will rise at a rate of about 5% per year but that the premiums I will pay will rise a at a rate of about 8% per year. I queried the reason for the difference and I was told "that's just the way the policy works."
Is this difference typical of life assurance policies? Please comment.