From 1 January 2026, customers with increasing cover (indexation) policies will be able to decline annual increases in cover for up to three consecutive years, while retaining the right to accept future increases. The option, already available to new customers since April 2025, will now be extended across existing life insurance, critical illness cover, whole of life and income protection policies.
Increasing cover policies link premiums and cover amounts to the Retail Prices Index (RPI), helping to protect against inflation. The new flexibility gives policyholders more control over annual adjustments, particularly in times of rising living costs, without losing long-term inflation protection.
Pippa Keefe, commercial director for retail protection at Legal & General, said: “This enhanced flexibility, which was offered to new customers in April, ensures that existing customers will also benefit from more flexible, future-proof protection that evolves with their needs. The enhancement also demonstrates our ongoing commitment to listening to valuable feedback from our network and delivering positive outcomes for advisers and their clients for both new and existing policies.”
