Indexation
Annual increase in your sum insured (and premium) to keep cover in line with inflation.
Definition
Indexation (also called CPI-linked cover) increases your sum insured each year by a stated amount or by CPI. The premium increases in line. It prevents cover from being eroded by inflation over a long policy term. Most NZ insurers offer indexation as an opt-in or opt-out option.
See also
- Sum insured — The lump-sum cover amount your policy pays on a valid claim.
- Premium — The amount you pay the insurer (monthly, fortnightly, or annually) to keep cover in force.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.