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So your insurance benefit keeps up with the rising cost of living, when your policy provides an inflation adjustment we automatically increase it for you without you needing to provide medical or other details. Each year we increase your sum insured, which means you’ll get more cover. This way, if you need to claim on your life insurance, the payment you receive will have kept pace with the cost of living as measured by the Consumer Price Index (CPI). As your cover increases so does your premium. We call this an inflation adjustment, and it is an optional feature that you can choose to opt out of.
How is the inflation adjustment calculated?
The inflation adjustment is worked out using the Consumer Price Index (CPI), which measures the cost of living against the price of a basket of goods. Whenever the average price of these goods and services goes up or down, the CPI is adjusted.
If your insurance policy is linked to the inflation adjustment, each year we increase your sum insured by either the increase to the consumer price index (CPI) or a fixed percentage - whichever is higher.
How does the inflation adjustment work?
With Resolution Life insurance policies, the inflation adjustment is an optional feature. If your sum insured is adjusted for inflation, you will receive a larger benefit if you make a claim. It’s important to note that your premiums will also increase every year.
- For Life, TPD or Trauma cover, the inflation adjustment amount is either 5% or the increase in CPI – whichever is greater.
- For Income Protection cover, the inflation adjustment amount is either 3% or the increase in CPI – whichever is greater.
Allowing the amount of cover to increase automatically may be right for some people, while others may not want their cover and premium to increase. You can choose to keep the adjustment or opt out, either for one year or permanently.
How do I check if my policy is currently adjusted for inflation?
You can check whether your policy is currently adjusted for inflation within My Resolution Life under ‘Policy Details’ or within your most recent Annual Statement.
Because this feature is optional some people choose to keep the adjustment to ensure they have enough insurance to cover their needs, should they ever need to claim in the future. While on the other hand some people choose to opt out of the inflation adjustment, particularly if affordability is a concern or they no longer need as much cover.
If you do want to opt out, you can do so online:
Opt out in My Resolution Life. Just search for ‘inflation adjustment’. Login or register today
Opt out using our online inflation adjustment form.
It’s a good idea to speak to your financial adviser about how inflation may impact your personal circumstances, so you can decide whether the increase is right for you.
Contact us
- Login to My Resolution Life to chat to us
- Submit an online enquiry
- Contact your financial adviser
What you need to know
Any advice on this website is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), and is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision on whether to acquire, or continue to hold, the product.
The Target Market Determinations (TMDs) for our financial products (where applicable) can be found at Target Market Determinations (TMDs). The TMDs describe the key features and attributes of an applicable product that affect whether it is likely to be consistent with the objectives, financial situation and needs of consumers in the target market.
If you decide to purchase or vary a financial product, Resolution Life and/or other companies within the Resolution Life Group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium you pay or the value of your investments. You can ask us for more details.
Resolution Life is part of the Resolution Life Group and can be contacted via contact-us or by calling the phone number mentioned above.
Life Insurance Code of Practice
The Life Insurance Code of Practice is issued by the Financial Services Council (FSC) and sets out the life insurance industry’s commitment to high customer service standards, consistency and principles of conduct. You can find more information here.
