The "Real Value" Calculator
Inflation reached a 40-year high in 2022 (9.1%). If you bought a fixed-sum life insurance policy before then, its "real" payout value has dropped significantly.
Check Your Policy Value
£
Life insurance inflation calculator guide
WeCovr's insurance inflation calculator shows how UK inflation can erode life cover over time, using indicative information prepared by WeCovr, an FCA-authorised insurance broking firm with over 900,000 policies issued across multiple classes of insurance. It helps policyholders assess whether their cover still has the same buying power.
What this inflation calculator measures
The calculator applies historical UK CPI inflation to estimate the real value of your original cover amount today. It shows the shortfall created by rising costs.
Results are based on published ONS data and are intended for planning purposes only.
Uses CPI data from the Office for National Statistics.
Estimates current buying power of original cover.
Highlights the inflation-driven shortfall.
Why inflation matters for life cover
Inflation reduces the real value of a fixed payout. If your policy does not increase over time, your family may receive less purchasing power than intended.
Why WeCovr supports regular reviews
WeCovr is an FCA-authorised insurance broking firm and has high customer satisfaction ratings. We also offer complimentary access to the CalorieHero AI calorie tracking app and discounts when customers take PMI or Life insurance.
Data sources and guidance references
This guide references ONS CPI series (MM23) and general protection planning concepts for context only.
Inflation protection options
| Option | Cost impact | Coverage effect | Best for |
|---|---|---|---|
| Level cover | Lower | Fixed payout | Shorter terms |
| Increasing cover | Higher | Keeps pace with inflation | Long-term plans |
| Policy review | Varies | Adjusts sum assured | Changing needs |
Related WeCovr resources
FAQs
Does inflation reduce my life insurance payout?
Yes. A fixed payout buys less over time as prices rise.
Can I add inflation protection to my policy?
Some policies allow increasing cover, but this usually raises premiums.
How often should I review my cover?
Many people review every few years or after major life events.
Are the inflation figures in this tool official?
They are based on published ONS CPI data and are for planning use only.
Get your score
Get your free Protection Score
Check how protected you are, spot the biggest gaps, and then decide what to do next.
Answer a few quick questions
See where your biggest protection gaps may be
Move into the right next step if you want help
What you get
A quick view of your current protection position
A clearer idea of where the biggest gaps may be
A direct route to tailored help if you want it