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linking is a method of maintaining the actual purchasing power of
the insurance cover to offset the effects of inflation.
Through the Index Linking option, the insurance company automatically increases the sum insured each year. Most Life companies use the Retail Price Index as the yardstick for the percentage increase
applied to the sum insured.
However, as well as increasing the insured sum, Index Linking also proportionately increases the monthly premium.
Links
Life Insurance Quotes
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