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Benefits of sum insured escalation
Annual escalation in long-term policy: The cost of replacing re-construction and re-building material rises with time due to inflation which means that the cost of constructing the house 10 years later would be a multiple of what it is today. To address this, BGR policy comes with an auto escalation feature under which the sum insured amount is raised annually. Being an inbuilt feature this will not cost extra premium for the policyholders in future.
Daily escalation for annual policy: Price rise not only happens annually but also gradually. To give an identical benefit within one policy year, BGR offers daily escalation of sum insured. For an annual policy, the sum insured is automatically increased each day by an amount representing 1/365th of 10% of sum insured at the Policy Commencement Date.
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