If Jackie wants to maintain the real purchasing power of her life cover, which option should she add to the Term Assurance policy?

To maintain the real purchasing power of her life cover, Jackie should consider adding an indexation option to her Term Assurance policy. Indexation ensures that the sum assured increases in line with inflation, typically measured by a price index. This means that as the cost of living rises, the value of the life cover will also increase, helping to preserve its purchasing power over time.

Without indexation, the sum assured remains fixed throughout the policy term, which could lead to a significant decline in its real value if inflation occurs. Consequently, in the event of a claim, the benefit paid out may not reflect the actual needs or cost of living at that time, potentially leaving beneficiaries with inadequate financial support.

The other options relate to different aspects of a life assurance policy. Insurability pertains to the ability to secure coverage based on health and other factors, conversion allows for the policy to be transitioned into a permanent policy without proving insurability again, and renewal refers to the capacity to extend the coverage once the term expires. While these features can be beneficial, they do not specifically address the need to protect against inflation and maintain purchasing power.