Advisers urged to shield protection clients from inflation

The firm also says providers that offer ‘escalation’ options – allowing consumers to increase the amount of benefit every year as inflation increases - should re-consider their methods of calculating premiums and start offering ‘pay as you go’ terms instead. Consumers tend to think in today’s monetary terms, says progress, despite the fact protection claims can happen many years after they arranged their cover. It points out a loaf of bread that cost 16p in 1975 now costs 71p and argues failing to take inflation into account can leave consumers feeling short-changed when they do make a ...