Values are adjusted over time to reflect the impact of inflation.

Indexing could be used for a life insurance product so that the payout your receive will meet your future needs.

Another example of indexing would be if you purchase an annuity to pay you at set intervals. You may choose to receive lower amounts now with a promise that if inflation does occur you will receive that higher amount in the future.

As with all insurance products, talk to your financial advisor and your accountant. Choose carefully as you control your insurance.