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.
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Life insurance inflation calculator guide
WeCovr's insurance inflation calculator shows how UK inflation can erode life cover over time, backed by FCA-authorised guidance and 900,000+ policies issued across protection products. 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 provides FCA-authorised guidance with 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 FCA guidance on protection insurance.
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.