Category: Specific protection products · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed 2026-06-10
Increasing whole of life is a whole of life assurance policy in which the sum assured and the premium increase annually in line with an index (commonly CPI or RPI, sometimes capped at 5%). The objective is to maintain the real value of the cover over the insured’s lifetime, recognising that inflation erodes the purchasing power of a fixed nominal sum assured.
Category: Specific protection products Also known as: Indexed WoL Indexation: RPI/CPI, often capped Related concepts: Whole of life cover, Trust written whole of life, Inheritance tax cover
The annual indexation may be automatic (with the insured given the option to decline the increase each year, generally without further underwriting) or by option exercised each year. The premium increases in proportion to the sum assured plus an additional age loading reflecting the higher mortality risk on the larger cover.
FCA regulated under ICOBS. Tax treatment depends on trust structure — for IHT-mitigation purposes the policy is normally trust-written.
Increasing WoL is particularly suited to long-term IHT planning where the policyholder wants the cover to keep pace with anticipated estate growth.
A 55-year-old takes out an increasing WoL policy with a starting sum assured of £500,000 indexed by 3% per year. Premium starts at £350 per month and grows similarly. By age 80 (25 years later) the sum assured has grown to approximately £1,047,000 — broadly tracking the growth in the estate’s IHT exposure.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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