What is rerating?
Rerating is when an insurer reassesses your premiums. Many insurers recalculate your premiums on the anniversary of your policy start date, but at Indie, we recalculate everyone’s life insurance policy automatically in January each year.
First, we rerate your premium according to your age. This is because, as you get older, the likelihood that you’ll make a claim increases. Because your life insurance premiums are based on risk, we need to increase your premiums as you get older to stay in line with this increased risk.
We also rerate your premium to adjust for expense inflation and for clients who want their cover amounts to grow.* When you first get an Indie quote, your premiums and payout amounts are based on “today’s money”. But because of inflation, the same amount of money will be worth less in future, which means most clients would opt to increase their payout as the years go by to make sure they always have enough cover. And that means we also have to increase premiums.
*This applies to all Indie’s underwritten life insurance products except Indie Shield.
If you want to opt out of your next automatic increase for whatever reason, you can contact us at email@example.com and let us know. In that case, we’ll keep your premiums level but we’ll reduce your cover instead. If we don’t hear from you, we’ll automatically deduct the new, increased premium amount in January, on your usual payment date.
All of this only applies to underwritten life insurance. Indie funeral premiums do not increase automatically.
- How are premiums calculated?
- What happens to my Wealth Bonus if my premiums increase?
- Can I change my cover over time?
- Will my monthly payments go up over time?
- What’s a payout?