Barlow Irvin’s Protection Specialist, Jade Winstanley, is always here to help. This month Jade talks about the rise in the cost of living and providing an income for your family that will increase in line with inflation.
The cost of living is on everyone’s lips now, and the price of everything seems to be sky rocketing; be it energy price or a weekly shop. For example:
Rise in Food Prices (% change)
| Food & Non-alcoholic beverages | Jan 2021 – Jan 2022 |
| Oils & Fats | 15.9% |
| Fruit | 6.9% |
| Milk, Cheese & Eggs | 5.7% |
| Vegetables (including Potatoes) | 4.5% |
| Meat | 3.9% |
| Bread & Cereals | 3.6% |
| Fish | 2.9% |
| Sugar, jam, syrups, chocolate & Confectionery | 2.2% |
| Coffee, tea & Cocoa | 4.9% |
| Mineral waters, soft drinks & juices | 2.5% |
So, the price of goods are increasing but what has that got to do with insurance? Insurers automatically Index Link your Buildings and Contents sum insured to accommodate the increase in prices of materials, but have you also considered your life insurance? Mortgages are not subject to Index Linking as the amount is going down, but Index Linking life insurance (i.e., the amount to be paid out when you pass) gets boosted year on year, to keep it in line with the RPI (Retail Price Index).
This is particularly important for families. If you were to pass, this will make sure that you are not just paying off the mortgage but also providing an income for your family that will increase in line with inflation.
If this has given you something to think about – why not give our Protection Specialist, Jade Winstanley, a call on 01204 304814.