Dynamic increase (insurance)

Dynamik (indexation) is an automatic annual increase in insurance premium and benefit without a new health check.

How does it work?

• Every year your premium rises by e.g. 3%
• At the same time your insured benefit rises by the same percentage
• You receive a notification before each increase
• You can object to each increase

Example occupational disability insurance:

• Year 1: €1,500 disability pension, €80 monthly premium
• Year 5: ~€1,740 disability pension, ~€93 monthly premium (with 3% indexation)
• Year 10: ~€2,015 disability pension, ~€108 monthly premium

Where does indexation make sense?

• Occupational disability insurance: YES – a €1,500 disability pension loses value through inflation. Indexation preserves purchasing power
• Term life insurance: partly – if your need for cover grows (growing family)
• Liability/household contents: usually unnecessary – better to review the contract every few years

Right to object:

• You can object to the indexation every year
• But: after 2–3 consecutive objections, the indexation option lapses permanently
• Then no more increases are possible – not even if you need more later
• So think carefully about whether you really want to object

Big advantage: increases without a new health check! If you fall ill after taking out the policy, you won't get disability cover elsewhere – but through indexation you can keep increasing your existing cover.