Inflation and Life Insurance
It is likely over the coming years that inflation will rise. Policy makers are comfortable with inflation in the region of 2% and we expect to see inflation at this rate through the end of the current decade.
Interest rates expectations remain low as the economies of Europe still have a long way to go to deliver steady growth in an uncertain international trading environment.
Inflation rates are important when considering long term investments and products such as life insurance.
If inflation rises at an average of 2% a life insurance policy for €100,000 will have a purchasing power of €67,000 in twenty years' time.
All our Life insurance policies have optional indexation which allows you to protect against inflation.
The indexation facility allows you to increase your premium by a small amount each year in return for increased benefits. The Indexation must be taken out at the commencement of the policy. It is possible to cancel the indexation option at a later stage retaining the existing benefits and premium but you cannot opt in for indexation once the policy has issued.