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He was asked to complete a non-smoking declaration form, plus provide a personal statement to review his occupational and medical loadings based on his reduced BMI and healthier lifestyle. Mike asked Resolution Life to remove certain premium loadings from his Income Protection insurance due to his change in lifestyle. He’s quit smoking and started doing daily, low-impact exercise.

But, after years of changing his habits, he’s managed to reduce his BMI to 23 which is now in the ‘healthy’ range. Mike used to have a Body Mass Index (BMI) of 32, which put him in the category of ‘obese’. He was paying $377 per month for Income Protection insurance. He works full-time as a real estate agent, earning a salary of $110,000 per year.

Mike is 41 years old and lives at home with his 10-year-old daughter. This can be done in My Resolution Life, just search for ‘inflation adjustment’.Ĭustomer examples: How Mike and Rachel reviewed their insurance cover 1 Mike – in his early 40s, single with one dependant and has Income Protection cover You can opt out of the increase for any particular year or permanently and this change will take effect from the next policy anniversary. You can learn more about inflation adjustments here. It’s a good idea to speak to your financial adviser about how inflation may impact your personal circumstances, so you can decide whether inflation adjustments are right for you. Sarah has a choice to decline the 5% inflation adjustment and retain the lower sum insured amount of $500,000 or to do nothing, in which case her life insurance sum insured amount will increase to $525,000 and she will pay the higher premium of $325. Her renewal notice provides her with the option of maintaining her life insurance sum insured amount at the same level as the previous year, which is $500,000 and has a yearly premium of $313 or, as her policy has a 5% inflation adjustment feature, she can have a life insurance sum insured amount of $525,000 (a 5% increase to her previous year’s sum insured amount) which has a yearly premium of $325. Sarah is 41 and has just received her renewal notice. As your sum insured increases so does your premium.Įxample - A choice for lower cover and lower cost 1 We’ll apply whichever of these is higher, which means you’ll get more cover.

Each year we increase your sum insured by either a fixed percentage or the increase to the consumer price index (CPI). This is called an ‘inflation adjustment’. To protect your policy against the effects of inflation, we often apply an automatic increase to your amount of cover without you needing to provide medical or other details.