Most consumers only think about inflation when they feel it at the till or when checking their investment returns. Very few consider how inflation quietly erodes the value of their risk cover. That’s where you, as their financial adviser, play a critical role. Your clients rely on you to ensure their life cover keeps pace with rising costs. If your client claims, the pay-out should maintain its purchasing power, thereby protecting their family from financial strain at an already difficult time.
But it’s not just lump‑sum cover that needs attention. Monthly recurring pay-outs also need to escalate annually. Without increases that match overall cover and premium escalations, clients could face severe hardship as inflation chips away at the real value of those payments. And as you know, not all inflation is created equal. Medical expenses rise faster than everyday consumer costs. Education costs climb at their own rate too. Structuring a single policy to meet all these needs – each growing at a different pace – is one of the biggest challenges advisers navigate today.
Link premiums and cover growth to inflation
Focus on products that can tie both premiums and cover to inflation so the client’s protection grows at the same pace as the rising cost of living. This ensures pay-outs remain meaningful and helps build trust as clients see the value in cover that keeps working for them year after year.
Prioritise maximum flexibility in cover and premium escalations
Look for products that allow you to uncouple premium and cover increases, giving you the freedom to tailor solutions to each client’s unique needs. In some cases, keeping premiums level while gradually increasing cover might deliver the best long‑term value. Flexible product design lets you craft smarter, more relevant solutions without being boxed into fixed escalation patterns.
Match different needs to different inflation rates
Medical inflation. Household expenses. Education costs. Each moves differently, and your clients feel those differences acutely. Structure cover so each need grows at its own appropriate rate. This protects clients from under‑insurance over time and removes the burden of constantly adjusting cover as markets move. For clients worried about education costs, at BrightRock, we offer them a tertiary education step‑up: a once‑off increase of 50% to 200% (based on client choice) in childcare cover and recurring claim pay-outs when a child turns 18. This helps fund the sudden jump in expenses when a child enters tertiary education – from transport to accommodation.
Explore cover that increases without additional medical underwriting
When cover doesn’t keep pace with inflation, the solution shouldn’t be another medical exam. Look for policies that allow clients to buy more cover when their needs change, without having to undergo medical underwriting. This ensures they can maintain adequate protection even if their health changes. Future insurability is a powerful benefit and a strong value proposition for long‑term client security.
This article is attributed to Chief Sales Officer at BrightRock, Etienne Fourie. It was published on The Insurance Directory on 4 March 2026. You can read the original article here. https://theinsurancedirectory.co.za/viewArticle.php?article-id=aid-69a822c162f07