Increasing Term Insurance
Learn how increasing term insurance works, the costs, and the benefits it can offer.
Table of contents
What is increasing term insurance?
Increasing term life insurance is a type of cover where the amount paid out, and the price you pay, go up over time. The increase is either based on an inflation measure or a fixed amount, so it is designed to keep pace with rising living costs.
Each year, your cover increases to help tackle the effects of inflation, and your monthly premiums will rise too. Depending on how your insurer works out the increase there may be a cap on the annual increase. This helps the value of your policy stay more in line with price rises, so your loved ones are better protected against the impact of inflation. In many cases you can choose not to accept an increase or switch to level cover instead if you would rather your cover and premiums stay the same.
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Key information
Cover that grow each year
Cover increases over time as the amount paid out and the premiums go up each year.
Increases start from year one
Starts like other term policies with the increase being applied from the 1st policy anniversary. You can reject the increase, but your insurer may not offer it to you again
Keeps up with rising living costs
Keeps pace with the cost of living and helps your policy keep its value as prices rise.
You can often reject or fix increases
Many plans let you reject increases or move to level cover, within policy limits. You’ll need to check your policy documents for how this works for your chosen policy.
Future‑proof support
Helps future-proof your policy, so your cover increases over time. This can help your loved ones with future funeral expenses, living costs, education, or housing.
Keeping your cover up to date
You’ll need to review your policy documents regularly, as changes to your circumstances or financial goals may mean the original cover amount or term is no longer suitable for your needs.
What are the benefits of increasing term insurance?
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Nick
I enquired about a life insurance…
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Highly recommend dealing with Matt.
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The man that dealt with me MATT was…
The man that dealt with me MATT was very professional and talked me through everything I was pleased with how he was respectful and explained everything so I could understand the process I’m happy with the cover I have.
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He took me through the details of life insurance and critical illness. He found a very well priced cover plan, which I took out. Wonderful company.
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Spoke with Craig today with a view to getting life cover, he was clear, precise and excellent in explaining from start to finish and answered all my questions satisfactorily, even had a bit of banter along the way which made the experience very pleasing, needless to say I bought the policy recommended to me. Thank you.
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Life Insurance
Had the chance to speak with Grant, he was amazing.
It was my first time arranging life insurance for my partner and my new born, so as you can imagine, not very clued up on how it all works. He explained everything so well and very clearly. Thank you Grant
Nick
I had a very positive experience with…
I had a very positive experience with this life insurance company.
Emily was knowledgeable, patient, explained all my options clearly and made the process easy to understand.
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Did an online quote and within minutes…
Did an online quote and within minutes got call from Katy who was amazing. Talked me through everything and ended up with policy. She knew what I was looking for and so helpful and patient.
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Had a consult with Tommy Farthing…
Had a consult with Tommy Farthing, absolute pleasure dealing with him. Extremely patient, clear understanding of the information he provided, made me feel at ease through the entire process as I was rather edgy at first. I never felt pressured or treated like a mere run through receiving my consult. Thank you Tommy.
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It was an absolute pleasure speaking with Harrison. His product knowledge was outstanding, and he took the time to explain everything thoroughly, ensuring I fully understood the options available.
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The man I spoke to was very helpful and…
The man I spoke to was very helpful and I came off of the phone saving £15 a month nearly on my life insurance
MS Heer
Very helpful gave me a lot of good…
Very helpful gave me a lot of good and a reasonable price for both insurances, was thorough with everything
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Amazing service from Luke Maguire…
Luke Maguire assisted us to find a life and critical policy that suited our needs and budget, he did so with time and care. Luke gave us plenty of time to consider options and was full of knowledge to support us to decide. Luke went over and above dedicating time that suited us but meant he would be late leaving off.
What can affect the cost of increasing term life insurance?
Your health and lifestyle can affect how much you pay each month and how much cover insurers are willing to offer. Things like smoking, your height and weight, and any past or existing medical conditions can all play a part.
This doesn’t mean you can’t get life insurance, but it can change the price you pay or the amount of cover you’re offered. Being open and honest about your health, lifestyle and job helps make sure your policy is valid and can pay out when your loved ones need it.
Health and lifestyle factors
When you apply for increasing term life insurance, insurers usually look at a few key things:
Sometimes, an insurer may ask you to have a simple medical check to better understand your health.
If you already have cover and later lose weight, improve your health, or have been smoke or vape-free for at least 12 months, you may be able to get a new quote that works out cheaper than before. You will need to be medically reassessed based on your health and lifestyle at the time of the new application.
High risk jobs
Some jobs involve more day-to-day risk than others. For example:
Having a higher-risk job might mean you pay a bit more or have some extra terms on your policy, but it doesn’t mean you can’t get cover.
If you have questions about getting life insurance with a high-risk job, just get in touch with our friendly team. We’re here to help you find the right cover for your situation.
This list of high-risk jobs is not complete and should not be seen as a full guide.
High risk hobbies
Some active hobbies are seen as higher risk by insurers, such as:
It’s important to mention these activities on your application so your policy works as expected. Being open and honest helps make sure any future claim runs smoothly, and means you won’t end up paying more than you need to for the wrong type of cover.
This list of high-risk hobbies is not complete and should not be seen as a full guide.
What are the different types of life insurance?
Life Insurance can feel confusing, so here is a quick, simple overview of the main types.
Most popular
Increasing Term Life Insurance
The cover amount increases each year, to tackle the effects of inflation, so your payout and premiums keep
pace with the cost of living.
Good for: Keeping up with rising costs
Cheapest option
Decreasing Term Life Insurance
The payout reduces over time, often matching your mortgage balance.
Good for: Covering a repayment mortgage
Guaranteed acceptance
Over 50s Life Insurance
Guaranteed, if you meet the age and payment rules, acceptance for UK residents aged 50–80. No medical checks needed.
Good for: Ages over 50
Couple cover
Joint Life Insurance
Covers two people and pays out when the first (or sometimes second) person dies.
Good for: Couples who want to share one policy
Fixed cost
Level Term Life Insurance
Pays a set amount if you die during the policy term. The cover and monthly cost stay the same.
Good for: Budgeting at a fixed cost
Lifetime cover
Whole of Life Insurance
There’s no end date, this policy pays out whenever you die, as long as premiums are paid.
Good for: Lifelong cover
Illness add-on
Critical Illness Cover
Insurance that pays a lump sum if you are diagnosed with a serious illness covered by the policy during the term.
Good for: Financial help if you become seriously ill
Protection add-on
Income protection
If illness or injury stops you working, income protection can pay a regular amount to help with everyday costs like rent or mortgage, bills and food, so you can focus on your recovery.
Good for: Covering your income if you can’t work
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How much life insurance cover do I need?
Our calculator helps you get a rough idea of how much cover you might need if the worst happens, based on the figures you put in.
Ready to get a free quote and compare your life insurance options?
Ready to get a free quote and compare your life insurance options?
FAQs
Got questions about life insurance? Here are some of the most common ones.
How much does increasing term life insurance cost?
Life insurance can start from as little as £5 a month. The exact price depends on things like your age, health, lifestyle, cover amount, and policy type. We’ll show you quotes from a range of insurers to help you find what fits your budget.
Read moreWhat affects the cost of increasing life insurance?
Your monthly cost depends on your age, health, lifestyle, how much cover you want, and how long you want it for. Smoking, certain jobs, and some hobbies can also make a difference. We’ll talk it through and show you your options so you can make an informed decision.
Read moreCan I trust you and your insurance providers?
Protect Line was founded in 2010 and has since grown into one of the UK’s largest and leading life insurance brokerages, employing 250+ staff nationwide. Winning multiple consumer awards each year and receiving thousands of five star ratings on Trustpilot, Google and Smart Money People, Protect Line is a highly trusted company.
We are fully authorised and regulated by the Financial Conduct Authority, entered on the Financial Services Register (www.fca.org.uk/register) under reference 942467. We are also registered with the Information Commissioner’s Office (ICO) to meet data protection standards and adhere to the Advertising Standards Authority (ASA) rules to ensure our advertising is always clear, fair and not misleading.
Read moreWhy use a non-advised broker instead of going direct?
A non-advised broker can show you quotes from a panel of top insurers, not just one. That means more choice and a better chance of finding cover that fits your needs and budget. Plus, we make it easy to compare options and support you every step of the way.
Read moreHow do I get increasing term life insurance?
It’s simple! Just fill out our quick online form and we’ll give you a call. We’ll explain your options in plain language, share quotes from our panel of top insurers, so you can choose the right cover for you. No jargon, no pressure.
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