Why do my cover and premium increase each year?
Your policy probably includes indexation, which increases your cover each year to help it keep pace with inflation. Because the cover goes up, the premium rises too, usually by a little more because you are also a year older. Your insurer will normally write before each increase. Many policies let you decline an increase.
Why it can be useful
Without increases, a fixed lump sum buys less over time. Indexation helps the payout stay meaningful.
Declining an increase
If you decline, check whether future increases are still offered. Some insurers stop offering them after you decline a set number.
Review the need
If your mortgage or family needs have fallen, you may not need the extra cover.
This article is general information about UK protection insurance, not personalised financial advice. Policy terms vary between insurers and products, so always check your own policy documents.
Last updated 27 October 2026