Annual Plan Review.

Your cash sum will be reviewed each year in line with the Retail Prices Index (RPI). Your premiums will increase by 1.5% for every 1% increase in your cash sum.

What is RPI?
RPI is used as a measure of inflation. It measures the changes in prices of everyday household goods and services like food and energy bills and shows how the cost of living rises over the years.

Here's an example of how the Increasing Plan is reviewed:
Robert Simms chooses to pay £10 a month for a cash sum of £2,105 on death. After one year we review his cash sum and premiums in relation to RPI. 

If RPI is 3%:

• His cash sum increases by 3% to £2,168
• His monthly premium increases by 4.5% to £10.45

Points to consider:

• If RPI is less than 0%, there will be no change in his cash sum and the amount he pays will remain the same.
• If RPI rises to over 10%, the maximum increase in his cash sum will be 10% and the maximum increase in premium will be 15%.
• You can choose to decline the annual review when we write to you each year. If you decline you won't be able to restart the increases and your cash sum and premium will remain fixed at the value at that time.
• Please remember that if you decline the annual review the effects of inflation may reduce the value of the cash sum that will be paid out when you die.

Back to Increasing Plan page

Here's an example of how the Insured Funeral Plan is reviewed:
William, aged 60, pays £15.46 a month for his Insured Funeral Plan, which has a value of £3,145 when the plan starts. 

After one year we review his plan's value in relation to RPI and adjust his premiums by 1.5% for every 1% increase in that value.

If RPI is 4.8%:

• His plan value rises by £150.96 to £3295.96
• His monthly premium rises by £1.11 to £16.57

Points to consider:

• If RPI is less than 0%, there would be no increase in his plan value and the amount he pays will remain the same.
• If RPI rises to over 10%, the maximum increase in his plan value would be 10% and the maximum increase in his premium would be 15%.
• If you decline the annual review at any time your plan value and premium will remain fixed at that value and will still be paid out to Dignity when you die, but as a contribution towards the full cost of a funeral.

Back to Insured Funeral Plan page