Typical increases in indexed life policy?

[Protocol]

I plan to buy a joint life policy.

Here are some rates for 30 yrs.

200k = 337
200k indexed = 363

300k = 492
300k indexed = 532

My question is - what are the typical annual increases in premium for the indexed policies?

 

[F. Kruger]

Short answer is 'it depends on the company that you run with'

I think that Caledonian have the best deal on indexation , 5% on premium and 5% on cover.

Others are, typically, 5% on cover and 8% on premium.

I would also look at the value provided by Dual Life as opposed Joint Life

 

[F. Kruger]

OOPS !! I stand corrected, other offices do have 5% and 5% so your predicament, on which one to go for ,will depend on the total premiums paid over the term.

I remember doing this exercise for a client a while back and Caledonian worked out the best on his details.

 

[LDFerguson]

F. Kruger is right - you need to get quotes from all companies and establish which ones assume 5% increases on premium and cover and which assume cover increases at 5% but premium at a higher rate. A spreadsheet will then help you figure out which ones are dearer in the long run.