Help keep pace with rising living costs with cover that increases over time. Get an increasing term life insurance quote in minutes
Premiums from £5 a month for £120,000 payout¹
99.1% of life insurance claims paid in 2024²
Available for UK residents aged 18-70
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Increasing term life insurance pays out a sum of money to your loved ones if you pass away during the policy term. But unlike other policies where the payout amount stays the same, this policy’s payout amount goes up each year, usually to keep up with inflation.
This means the payout maintains its value over time. You can learn more about inflation from the Bank of England.
Keep in mind that your provider will increase your premiums each year to match the higher payout.
With increasing term life insurance, the payout keeps pace with inflation and the rising cost of living.
This means your loved ones can have long-term financial security, knowing they’ll get a higher payout as time goes by. It could help them cover future education costs, pay off a mortgage or start a family.
If you’re thinking of taking out a long-term policy with a large payout, increasing term life cover can help protect that payout from inflation, helping it grow and keep its value over time.
This type of cover is also useful if you want to leave a legacy that keeps up with rising costs. It could help offset inheritance taxes if you expect a large bill.
This type of policy can also help with end-of-life costs, such as funeral expenses or handling your will.
Here's a quick summary of how the Post Office Life Insurance increasing term cover option works
| What's it for? | Providing for your loved ones and reducing the impact of inflation on the payout |
|---|---|
| Fixed cash sum payout? | No, the payout increases each year in line with Retail Price Index (RPI) up to a maximum, up to 10% annually |
| What's the maximum payout? | Up to £750,000, depending on age |
| Age limit | Ages 18-70 |
| Are health-related question asked? | Yes |
| Is terminal illness cover included? | Yes |
| Can I add critical illness and children’s cover to my policy? | Yes, for an additional cost
About critical illness and children’s cover |
To make sure you’ve the right amount of cover for your needs, consider the following three questions.
What do you need to protect?
How much cover do you need?
How long do you need the cover for?
Think about whether you have a mortgage, other outstanding debts, or a combination of these. If you have a repayment mortgage, consider how much is outstanding. How long until it’s paid off?
Our life insurance calculator is an easy way to estimate how much cover you may need in your current situation. Simply enter a few details into the calculator to start.
Not quite sure if increasing term life insurance is right for you? Here’s a summary of other life cover options Post Office can help with if you decide they suit you.
With level term life cover, your loved ones get the same fixed amount of money whenever they make a claim. But this type of cover doesn’t adjust for inflation, so if you have a long-term policy, the payout might lose value as the cost of living goes up. This could make the amount feel less impactful in the future. Level term cover could be the right option if you want a set amount left behind to cover specific costs, like family bills or debt, without needing to pay for higher premiums over time.
If you have long-term debts, you may want to consider decreasing term cover. It helps repay ongoing financial commitments, such as a repayment mortgage or scheduled payment loan. You only pay for the cover you need, and your payout decreases in value over time as your debts get smaller. If your mortgage interest rate is 8% or less, decreasing term cover may be right for you. But note that cap on interest rates could differ by provider.
Here’s what else to think about if you’re considering increasing term life insurance.
Increasing term life insurance provides a payout that goes up over time, usually in line with inflation. This helps the payout maintain its value and supports your family’s financial future by covering living expenses, a new home or mortgage payments
For long-term policies, the growing payout can help protect against the rising cost of living. But remember, premiums will go up each year to match the higher payout
Payouts from increasing term life cover may be subject to inheritance tax. It’s important to factor this in when deciding how much cover you need
Some insurers allow increasing term policies to be placed into trust. This means the payout may not be counted in your estate for inheritance tax calculations, depending on certain conditions
Estate and tax planning is complex. It's worth talking to an independent financial advisor or solicitor about your specific circumstances
When you buy Post Office Life Insurance, you’ll also get a special reward. Choose a gift card from a choice of retailers or an unforgettable experience by getting a quote online or by phoning 0330 123 3921^.
† Qualifying period, minimum premiums and terms and conditions apply
† Qualifying period, minimum premiums and terms and conditions apply
Choose between level, decreasing or increasing term insurance, each designed to offer you peace of mind based on your circumstances.
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Post Office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration. If you buy Post Office Life Insurance over the telephone or online via the Post Office website, it is arranged and sold by Neilson Financial Services Limited, following an introduction by Post Office Limited. If you buy Post Office Life Insurance online via a price comparison website, it is arranged and sold by the firm that provides the price comparison website services.
Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.
† Gift card or Experience offer ends 30 April 2027. Minimum premiums and 180-day qualifying period applies.
* Restrictions apply, see amazon.co.uk/gc-legal
Post Office Life Insurance is for customers who are UK residents aged 18-70 at the start of the policy. The minimum term is 5 years and cover must end before your 90th birthday.
We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. If you don’t tell us something or give us incorrect answers to our application questions that affects your cover, we may reduce the amount we pay for a claim or at worst cancel your cover and not refund your monthly payments.
1 Based on 21-year-old non-smoker in good health buying £120,000 level cover over a 21-year term.
2 Post Office Life Insurance is provided by Scottish Friendly. Scottish Friendly paid 99.1% of life insurance claims they received in 2024.
3 Data accurate as of March 2026.
^ Opening Hours: Monday to Friday: 9am - 8pm, Saturday: 9am - 5pm, closed on Sundays and bank holidays. Call charges: Calls to 03 numbers will cost no more than calling a standard UK number starting with 01 or 02 from your fixed line or mobile and may be included in your call package. Calls may be monitored or recorded for training and compliance purposes.