Life insurance - Increasing benefit; good idea?

pete1976

Hi folks,

Just been looking into some level term life insurance and just wanted to get peoples thoughts on whether it's a good idea to have increasing benefit or not. To my mind (and I don't really know what I'm on about) it seems a good idea to have the benefit linked to inflation but on the negative side you're giving the insurer licence to hike up the premium each year as they see fit!

Any thoughts please?

Thanks.

lisyloo

and just wanted to get peoples thoughts on whether it's a good idea to have increasing benefit or not

Generally the options offered are level or decreasing.
The reason is that a log of people seek to cover a mortgage and that decreases over time.

Generally your debts (like mortgage) would decrease as you get older also your private pensions (that would pay out if you die) get significantly bigger.

So I would ask.
Why do you want it to increase?
What is it you are looking to cover?