Annual Inflation Update Benefit

This benefit exists to ensure that investments keep up with inflation and minimize its corrosive effect on the purchasing power of money. To that end, an annual update to increase premium and life cover is available.

Advantages

Your Policy is hedged/cushioned to some extent against Inflation.

The premium update will result in the additional premium being utilised, to purchase:

1. Additional units in the Universal Programme, i.e. the investment portion of the owners policy will be increased, and/or
2. Additional life risk,(where such exists in the original schedule) i.e. the death benefit or basic sum assured will be increased.

If the client opts for a 5% update, then the update will be used to increase the investment portion only, and life cover (if it exists in the original schedule) will not change.

If the client opts for a 10% update, then he/she has 2 options:

1. The update can be used to increase the investment only, or
2. The update can be used to increase the Life cover and the investment. In this case, the life cover will increase by 6% and as a result the investment increase will be much less than option because most of the update will go toward purchasing increased life cover.

Features

Once selected, this is an annual automatic premium increase, effected on the anniversary of the policy.

The owner may, as long as he notifies BLIL in writing, at least 30 days prior to an anniversary that he/she wishes to refuse an update for that particular anniversary. The update will be reinstated on the following anniversary.