Index-Linked Life Insurance: How It Works and the Benefits

Shawn Plummer

CEO, The Annuity Expert

Index-Linked Life Insurance is a relatively new type of life insurance policy that has been growing in popularity in recent years. It offers a unique combination of features that make it an attractive option for many people. In this guide, we will discuss how Index-Linked Life Insurance works and the benefits that it offers.

What Is Index-Linked Life Insurance?

Many insurance companies offer policies with face amounts that increase as inflation goes up. This way, you’ll have more coverage if prices go up. The face amounts of these policies are usually linked to the Consumer Price Index.

How Do Index-Linked Life Insurance Premiums Work?

There are two ways to provide this extra protection:

  • The insurance company charges an increased amount each year to cover the cost of the increased insurance.
  • The life insurance company expects the cost of living to go up over the years, so it charges policyholders more than the average policy owner when they first buy the policy. After the policy is active, the insurance company charges the same premium each year, no matter how much the cost of living has increased.

Find The Best Life Insurance Coverage At The Cheapest Cost!

Compare life insurance quotes from 25 companies in seconds. Then, apply for coverage in less than 10 minutes.

Instant Quote

Need Help Getting Life Insurance Coverage?

Feel free to contact us if you need help purchasing a life insurance policy. The service is free of charge.

Life Insurance Inquiry

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top