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Understanding your Income Protection Contract Indexation & Age Band Increases

Premiums that you pay to the Society for your contract are dependent on the amount/type of cover you have taken out, your age and if you have selected the Indexation option.

This page is designed to help explain what these changes are, why they have occurred and what this means for your income protection contract.

Your Income Protection contract - What is Indexation?

As part of your income protection contract you may have selected the Indexation option (also known as the index-linking/inflation proofing option).

The effects of inflation can mean that over time your money will not go as far as it used to. To help maintain the value of any benefit you may receive if you need to make a claim, we offer an Indexation option. This means that your benefit entitlements and consequently your monthly premiums are linked to an official index determined by the Office of National Statistics. For Income Assured Plus, My Earnings Insurance, Income Assured Enhanced and My Earnings Protected we use the Consumer Price Index (CPI).

This will help to maintain the value of any benefit you may receive if you need to make a claim in the future, enabling you to continue to meet your financial commitments.

If you have chosen the inflation proofing option your cover and the premiums you pay will automatically be reviewed annually and if necessary will be increased in line with CPI.

If you have the Indexation option and are currently receiving benefit from the Society, your contract will still be reviewed annually and if necessary your benefit will be increased. You will receive any increase in benefit 30 days after the review and after your relevant deferred period if you have selected one.

If you are unsure about what this means for your contract please speak to your Financial Adviser or contact our Members Services Team on 0800 587 5098.

My Earnings Insurance - Annual Escalating Premiums

If you have selected the Annual Escalating Premium option your premiums will increase annually from the month following your birthday each year.  When you become a Member of the Society and your contract begins you will be given a personal quotation which will detail the changes due to your premium each year. All premiums for My Earnings Insurance are guaranteed so unless you make changes to your contract the personal quotation you receive will show you the monthly cost of your premiums from the first day of your contract right up until retirement.

If you make changes at a later date you will be issued with a new personal quotation.

Level Premiums do not increase and remain the same throughout the term of your contract.  However, please note that if you have selected the Indexation option your premiums (Level or Annual Escalating) may also rise in line with CPI. 

Income Assured Plus - 'Age Bands' Explained

Sometimes in life things turn out to be more expensive than you thought. That is why we at Cirencester Friendly believe in clear and transparent pricing. We provide our Members with Premium Tables which demonstrate how much premium they will be paying throughout the life of their income protection contract from the offset. These rates cannot be changed unless voted for and approved by our Members.

The premiums you pay to the Society for your Income Assured Plus Contract are dependent on the cover you have taken and your age in the coming year. These increases currently take effect on the 1st January of the year you will enter a new Age Band.

Income Assured Enhanced - Guaranteed Premiums

The monthly premiums shown in the Premium Tables are not level and will increase each year as you get older. Please note the rates are fixed and guaranteed throughout the life of the contract.

Contact – Cirencester Friendly

If you would like any further information regarding your contract please contact our Member Services Team on 0800 587 5098 or email who will be happy to help.

It is important that you keep your details up to date and review your cover with your Financial Adviser on a regular basis to ensure that you have the correct cover for you. If you don't have a Financial Adviser, provides a list of Financial Advisers in your area.

1. This is for protection only for protection with the option to accumulate a capital sum please refer to our Premium Tables