If Inflation affect Insurance

Inflation Adjusted Life Insurance Plans

CCW Global can provide Hong Kong Life Insurance plans which offer death benefits which are adjusted to lessen the impact of inflation.

It is an unfortunate of life that inflation reduces the purchasing power of money over time. This means that a life insurance policy which is purchased with a seemingly high death benefit may not have an actually high death benefit when it is finally distributed to the policyholder many years or decades later.

A form of an inflation adjusted life insurance benefit can be seen in A Cost Of Living Adjustment, or COLA benefit; a rider which will enable periodic increases in any disability income benefits being paid to the policyholder. A per the name of the benefit, payments to the policyholder are increased in line with the overall cost of living and are often linked to indexes including the Consumer Price Index.

Inflation

Quotation

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