Aviva life insurance, (read before you buy)
The history of Aviva as an insurance provider in the UK goes all the way back to 1696.
Starting out as ‘Hand in Hand’, then ‘Norwich Union’ in 1797 and eventually becoming ‘Aviva’ in 2002.
Aviva is now the largest UK insurance company and one of the biggest insurers in Europe. They also operate internationally in over 16 countries.
Aviva is probably best known for its insurance products, such as car and home insurance.
However, they also offer a variety of financial products such as pensions, investments, private health care and pet insurance.
In this post, we’ll be reviewing Aviva life insurance, helping you find the perfect policy…
Types of Aviva life insurance
Aviva life insurance products available in the UK include:
- Level term cover
- Increasing term cover
- Decreasing term cover
- Over 50s life insurance
- Critical illness cover.
They also offer free parent life cover for one year if you have a child/children under 4.
Aviva’s level, increasing and decreasing term cover can be taken out either as a joint policy or as two separate policies.
A joint policy will only pay out on the first death; however, the premiums could be significantly lower.
Of course, with two separate policies, you’re both protected individually and you’ll pay two separate monthly premiums.
Aviva offer their level, increasing and decreasing policies to applicants aged between 18 – 89 years.
Aviva level term cover
This works in the same way as other level term cover policies.
You arrange a fixed lump sum pay out (or sum assured) to go to your loved ones if you were to pass away within the term.
The cover remains in place for a specified term length, from 1 to 50 years, and the sum assured doesn’t change.
If you were to pass away before the term ends, then your loved ones will receive a full pay out.
This type of cover is commonly used to cover:
- Mortgage repayments
- Outstanding debt
- Day-to-day living costs of your family
- Your children’s financial future.
You may also want to leave behind some funds to cover the cost of your funeral, or to provide an inheritance for loved ones.
Aviva increasing term cover
Some life insurance policies can be set up with increasing term cover.
This is similar to level term cover, however, the level of cover will increase annually in line with inflation.
If you’re mindful that you may not pass away for quite some time, then you could protect your pay out from being worth less in the future.
This way you’ll still have a sufficient pay out sum to cover all the original costs that you took out a life insurance policy for.
Aviva increase the amount of cover as determined by the Consumer Prices Index (CPI), to a maximum of 10% increase.
Your monthly premiums would also increase to a maximum of 15%.
Aviva decreasing term cover
Also described as Aviva’s mortgage life insurance, decreasing term cover is the opposite of increasing term cover.
A decreasing term policy will (as the name suggests) provide a decreasing level of cover over time, although premiums remain fixed.
This type of policy is typically chosen to cover a repayment mortgage, where the outstanding balance decreases as time passes.
The policy length is usually set to mirror that of the mortgage, protecting what is for the majority of us, our most valuable asset.
So, if you were to pass away during the term, your loved ones would be able to cover the mortgage and remain in the family home.
It’s common across different insurers for decreasing term cover to be cheaper than other policy types and Aviva is no different.
Aviva over 50 life insurance
Over 50s insurance, also known as an over 50s plan, offers a guaranteed pay out to your loved ones after you pass away.
This form of cover is often used to cover a funeral, clear outstanding debts and/or leave an inheritance.
The insurer usually bases your premium on how much you can afford each month. With Aviva this can be from £5 up to £100 per month.
As with other over 50s plans, the key benefit is you’re not required to provide any medical information to Aviva to secure cover.
Aviva currently employ a 12-month waiting (or qualifying) period.
So, if you were to pass away with in the first 12 months of natural causes, you won’t receive a pay out and your premiums will be refunded to your family.
Aviva also describe this as their whole of life policy, as cover lasts for the rest of your life. However, premium payments will finish either on your 90th birthday or after 30 years of the policy.
Aviva are currently offering a £50 M&S voucher for new customers taking out an over 50s plan.
An over 50s plan could be a good alternative to a funeral plan, as the sum assured is usually sufficient to cover the cost of a funeral (and more).
The cost of a funeral has rapidly increased in the UK over recent years and is set to increase further.
Funeral plans are not affected by inflation, however if you’ve an over 50s plan then it’s possible the value of your pay out will decrease over time.
Aviva doesn’t offer a funeral plan option, however, you could take out a funeral plan separate to your life insurance.
At Reassured, we offer over 50 life insurance to anyone aged between 50 to 85 years old. We can also compare a number of funeral plans.
Aviva house purchase cover
Aviva offers 90 days free life insurance if you’re taking out a life insurance policy to cover your mortgage.
Once the purchase of your new home is completed, your cover will commence.
This benefit for many is worth taking advantage of, particularly as it’s free.
Aviva critical illness cover
Critical illness cover can be included with level term or decreasing term policies, with a term between 5 to 50 years.
If you’re diagnosed with a critical illness (and survive more than 10 days), you’ll be able to make a claim on your policy.
This could provide financial protection for you and your family at a time when you’re unable to work.
To take out critical illness cover with Aviva you need to be aged 18 – 64 years old and the maximum cover is £1 million, (although this sum will be unnecessary for most).
Aviva covers 54 medical conditions, including Alzheimer’s disease, heart attack, cancer and stroke.
You’ll receive a pay out if diagnosed with a critical illness, that is specified in the policy, (and you survive more than 10 days).
It’s important to note that once you’ve made a claim, then the policy will end and you’ll no longer be covered.
Some medical conditions come under their critical illness benefit, of which they pay out only a percentage of your total cover amount, to help with any surgery or treatment.
Meaning you’ll be left with the remaining cover if you were to fall ill again.
Reassured are able to offer critical illness cover as a standalone policy, which can be taken out alongside your life insurance policy. This way your life will always be protected if you become critically ill.
With Aviva’s critical illness plan, your children would also be covered for any of the specified illnesses.
As long as the child is between 30 days and 21 years* and survives the illness for at least 10 days, then a percentage of the cover amount will be paid out, (up to 50% and a maximum of £25,000).
If the child was to pass away during the policy term, then Aviva will pay a children’s death benefit of £5,000 on top of any funds received with critical illness cover.
Aviva free parent life cover
If you’re a parent in the UK and have a child or children under the age of 4, then you could be eligible for free parent life cover with Aviva.
Aviva offers up to £15,000 worth of cover, with zero premiums, for parents between the ages of 18 to 66.
Although, it’s always sensible to check your eligibility and any terms and conditions.
Aviva terminal illness cover
Like other life insurance providers, Aviva offer free terminal illness cover as standard with each life insurance policy.
If you’re diagnosed with a terminal illness and predicted to pass away within 12 months then you would be able to make an early claim on your policy.
The pay out could be used to help your dependants cope with the loss of an income, pay for a carer or make adaptions to your home to make your last days more comfortable.
Aviva life insurance cost
The sum assured can be up to £5 million for level or decreasing cover.
Although, for most, this level of cover is simply not necessary.
As usual, your premiums will be calculated based on your age, health and smoking status. Along with the term length and the sum assured of your policy.
As mentioned, the cost of an over 50s plan from Aviva is between £5 and £100 per month and the sum assured is up to £25,000.
However, if you’re over 50 but in good health, you may want to look at a whole of life policy.
The sum assured is much higher and the relative cost of your premium may be cheaper.
Aviva additional highlights
- Aviva offer discounts on their other products to both new or existing customers
- Life insurance products are rated 5* by Defaqto
- Aviva paid out 98.9% of claims in 2018
- Aviva pay for the medical exam if you’re required to have one
- Any plans taken out with Aviva are protected by the Financial Services Compensation Scheme (FSCS).
Aviva life insurance in trust
Aviva provide their customers with the option to write their life insurance in trust.
Writing in trust means assigning a trustee control of your policy after you pass away.
The trustees will be responsible for making any claims and distributing the pay out as per your wishes.
The main benefit of using a trust is that you can avoid 40% inheritance tax, as a pay out doesn’t form part of your estate.
At Reassured we offer a free trust service, where we can guide you through the process and help with the application.
Compare Aviva life insurance quotes
Reassured are the largest life insurance broker in the UK.
We compare quotes from a wide range of leading insurers, including Aviva.
This means we’re able to compare prices on a wide range of policies, including level term, decreasing term, whole of life, over 50s plans, critical illness and funeral plans.
Our highly knowledgeable advisors will provide you with all the information you need to help you find the right policy.
We can also guide you through the application process and explain any life insurance jargon.
And the best bit…our award-winning, FCA registered broker service is completely free to use.
*if they are 18, 19, and 21 in fall time education.