Aegon income protection

As of April 2023, Aegon are no longer providing income protection, life insurance or critical illness cover policies.

Aegon life is now part of Royal London and all existing customers’ policies will be transferred over to Royal London in 2024 subject to court approval[1].

Reassured can compare quotes from the whole of the market to help you find an alternative provider.

To find the right cover, at the best price, simply get in touch for your fee free quotes.

An income protection plan will pay out a percentage of your usual earnings, on a monthly basis, if you’re unable to work due to illness or injury.

Payments are tax-free and could help you to keep up with your financial commitments.

You may have once seen offerings by Aegon on the market, but what did they offer and how did it compare to others on the market?

Keep reading this in-depth review to find out about the income protection policies previously offered by Aegon.

It’s no longer possible to take out a new policy with Aegon, so why not find an alternative solution using the FCA-regulated broker service offered by Reassured?

Their whole of market comparison service can allow you to find the income protection policy that meets your needs, at the best available price.

Simply get in touch today for your personalised, no-obligation and fee-free quotes.

Aegon income protection (the facts)

  • Aegon income protection was available to those aged 18 - 59
  • The policy term must have finished by your 70th birthday
  • Up to 65% of your usual income could have been protected
  • Short-term (up to 2 years) and long-term (full) payment periods were available
  • The maximum monthly benefit was £20,833
  • Deferred period options were 4, 8, 13, 26 or 52 weeks
  • The policy came with an own occupation definition of incapacity
  • The policy premiums were guaranteed
  • A range of additional features were included as standard, such as fracture cover, lump sum payment upon death and waiver of premiums
  • There was no limit on amount of claims you could make throughout the policy term
  • In 2021, Aegon paid out 90% of income protection claims[2]

Who are Aegon?

Aegon were founded 190 years ago, starting life as a Scottish Equitable.

After officially re-branding as ‘Aegon’ in 2009, they’re now an international provider of financial protection[3].

As of 2023, Aegon have ceased sales of their life cover, including income protection, life insurance and critical illness cover.

Pending court approval, existing customers will be transferred over to Royal London.

However, Aegon still offer a range of pension, savings and investment solutions.

Across all products, Aegon are rated 3.5 stars on Trustpilot.

How much does Aegon income protection pay out?

Aegon income protection offered to pay out up to 65% of your usual income, up to a maximum monthly benefit of £20,833.

However, the percentage that was paid out depended on your earnings:

IncomePercentage paid out
Up to and including £20,00065%
Between £20,000 - £100,00055%
Over £100,00045%

At Reassured we can help you to compare income protection quotes from other providers who offer to pay out up to 70% of your earnings. Simply get in touch.

What can Aegon income protection cover?

Aegon income protection covered you while you were unable to work due to ill health or serious injury.

The tax-free payments the policy provided could help to cover essential financial responsibilities, such as:

Mortgage

Mortgage payments

Cover rent cost

Monthly rent

Bills utilities

Household bills

Daily costs

Daily living costs

Childcare cost baby

Childcare

Icons transport

Transport

To find out more about income protection, why not contact the friendly team at Reassured?

How much income protection insurance do you need?

Enter the fields which apply to you to calculate the level of income protection cover you might require to help cover key costs.

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£723 a month is the average monthly mortgage payment in the UK, with the average monthly rental price coming in at £700.

The majority of our monthly income will go towards rental or mortgage payments.

For this reason, it’s essential to have precautions in place to ensure you could keep up to date with your payments if you weren’t receiving your usual income.

Monthly income protection payments can help to cover this large expense and ensure you can stay in your home.

£
?

According to the Money Advice Service, the average household spends £340 a month on household bills.

This includes electricity, gas, TV and broadband.

£
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Childcare costs are on the rise with it now costing £137.69 per week for part-time nursery for a child under the age of two.

That’s over £550 per month - is this an amount you’d be able to keep up with if you were unable to work?

Becoming ill could also result in the need for additional childcare while you attend doctors’ appointments or medical treatment.

£
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The average household in the UK spends around £97 a week on their food shop, totaling £388 a month.

While this may seem like a small amount in comparison to some of the other expenses mentioned, the food shop is often where we try to scrimp and save when we fall on hard times.

Income protection can take care of the cost of your weekly food shop, as well as many other essential costs.

£
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At the beginning of 2020, credit card debt in the UK was at £2.1 billion, with almost 27 million UK residents in some kind of debt.

Becoming unable to work could make it hard to keep up with credit card or loan payments (including car finance or other financed goods).

Failure to keep up with payments could result in additional interest being incurred or late fees issues - resulting in a higher total needing to be paid.

£
?

The average spent on public transport each month comes to an average of £94.

This includes the cost of public transport, as well as petrol and diesel vehicles.

While this amount may reduce while you’re unable to work as you won’t need to commute there may be additional spending on public transportation if your illness or injury leaves you unable to drive.

£
£

Your total cover estimate

£ 0

Let us find you our best quotes.

When will Aegon income protection pay out?

Aegon income protection was designed to pay out if you developed an illness or injury that prevented you from working.

The illness or injury needed to meet Aegon’s definition of incapacity.

Aegon used an own occupation definition of incapacity, meaning you were able to claim for any illness or injury that prevented you from doing your own job.

The policy would pay out to you once the deferred period had come to an end and would continue paying out on a monthly basis until one of the following happened:

  • Your payment period came to an end
  • You recovered and no longer fit the definition of incapacity
  • You return to work and are no longer missing out on income
  • Your policy term comes to an end
  • You pass away

The deferred period is a set period that will be decided upon during the application process.

Often ranging from 4 - 52 weeks, the deferred period refers to the time that must pass before your payments will commence (you must still be unable to work after this time in order for your payments to begin).

Aegon income protection terms and conditions

As with any income protection policy, it’s important to check the terms and conditions to ensure they best meet your needs.

Aegon income protection terms and conditions were as follows:

Family Protection

Benefit amount (how much will be paid out each month) - Aegon offered to pay out up to 65%, 55% or 45% of your usual earnings depending on your earnings.

Definition of Incapacity

Definition of incapacity (what makes you eligible to claim) - Aegon income protection came with an ‘own occupation’ definition. This means you were able to claim if you were unable to do your specific job.

Deferred Period clock

Deferred period (the time in between making a claim and receiving payments) - Your payments will only commence once your deferred period has come to an end and if you’re still unable to work. With Aegon, your deferred period could be 4, 8, 13, 26 or 52 weeks.

Policy Term

Policy term (how long your cover will last for) - With Aegon your policy term could be a minimum of 5 years up to a maximum of 51 years. However, your policy must have ended by age 70.

Payment Period

Payment period (how long you’ll receive payments for) - With Aegon you could choose between a short term payment period of up to 2 years or a long term payment period (which could last until your policy expires).

If you have any questions or queries about income protection, why not speak to an expert?

The friendly team at Reassured will be happy to take you through every step of the application and provide all the information you need.

The team can also help you compare income protection quotes from all major UK insurers.

How much is Aegon income protection?

The price you paid for Aegon income protection varied depending on your personal circumstances.

During the application, Aegon required the following personal details:

  • Age
  • Medical history
  • Smoking status
  • Occupation
  • Lifestyle choices (hobbies, alcohol intake etc)

As well as details about your policy, such as:

  • Benefit amount
  • Policy term
  • Payment period
  • Deferred period

As Aegon only offered an own occupation definition of incapacity and guaranteed premiums, these weren't variable factors that influenced the price that you paid.

Why not compare other leading insurers through Reassured to find the most affordable deal?

Income protection starts from as little as 20p-a-day.

Aegon income protection pay out rates

In 2021 Aegon paid out 90% of their income protection claims[2].

While pay out rates can help to give an indication about the likelihood of a provider paying out, it’s not the only thing that should be considered when trying to find the right provider for you.

The most important thing is finding a provider that offers the right terms to meet your needs, while being at a price within your budget.

Why not compare quotes from the whole of the market through Reassured, free of charge, to find the right provider for you?

Aegon executive income protection

As well as their personal plans, Aegon also offered executive income protection.

Executive income protection is a business income protection policy, available to limited companies.

The policy will pay out to an employee while they’re unable to work due to illness or injury (this can include employed directors of their own limited company).

The policy will be arranged and paid for by the limited company, which means any premiums paid by the company can be classed as a business expense.

Executive income protection can be beneficial if your company is too small to be a part of larger group protection schemes but you’d like to offer some form of financial protection.

Aegon executive income protection key points:

  • The policy paid out up to 80% of an employee’s income (including employed directors of their own limited company)
  • Benefit amount was calculated using the employee’s pre-incapacity earnings, yearly pension contribution and employer national insurance contributions
  • The maximum benefit amount was £160,000 per year
  • Cover was available to those aged 18 - 59
  • The policy term must have finished by age 70
  • Short-term (up to two years) or long term (full) payment periods were available
  • Portable cover (so the insured person would have been covered if they moved jobs)
  • Included cover for income, commission, bonuses and P11D benefits which could be lost while the employee was unable to work
  • Premiums were paid by the business and be classed as a business expense

Reassured can help you compare executive income protection quotes, simply get in touch.

Why not read this complete executive income protection guide for more information?

Aegon income protection additional features

Aegon offered a range of additional features with their income protection, including:

  • Fracture cover - Fracture cover came with all personal income protection policies through Aegon for no extra cost. It paid out between £650 - £2,200 if you fractured a bone. The exact amount paid out depended on where your fracture was
  • Income promise - If your income dropped, Aegon would pay you a minimum income. If your monthly benefit was under £1,500, Aegon would pay out your chosen monthly benefit in full. If your benefit amount was over £1,500 Aegon would calculate a new benefit amount based on your new income
  • Lump sum death payment - If you passed away while a claim was being paid out, Aegon would pay out a lump sum of £5,000 to your loved ones
  • Linked claims - If you needed to make another claim for the same illness or injury within 12 months, your deferred period wouldn't apply (meaning you didn’t have to wait to receive payments)
  • Accidental death benefit - Automatically included for 90 days from the date Aegon received your completed application. This provided cover if you passed away as a result of an accident while your application was being assessed. This was either the lower of £300,000 or your benefit amount
  • Waiver of premiums - Aegon would cover the cost of your premiums while you were receiving your monthly benefit
  • Rehabilitation and proportionate benefit - If you were unable to return to work or needed to work reduced hours with fewer tasks, Aegon paid a reduced benefit amount to supplement your lower income
  • Unlimited claims - You could make an unlimited number of claims on your policy throughout the term. However, with a 2 year payment period, you must have returned to work for at least 6 months before another claim could be made
  • Policy plus - Included access to a second medical opinion and 24/7 health and wellbeing services

Compare Aegon income protection quotes

Aegon are no longer taking new applications or providing cover to new customers.

For this reason, Reassured are unable to provide you with Aegon income protection quotes.

However, a friendly member of the team can provide you with a range of quotes from alternative insurers.

Their comparison service is whole of market, allowing you to find the right income protection to meet your needs at the best available price.

Quotes through Reassured are free of charge, and you’ll also benefit from having a dedicated team member to answer any questions you might have.

To find the best deal, simply get in touch today.

Sources:

The information used in this article has been taken from the Aegon website and is correct as of 11/08/23. Please be aware this information is subject to change at any time

[1] https://www.royallondon.com/about-us/media/media-centre/press-releases/press-releases-2023/april/royal-london-acquires-aegon-uk-individual-protection-book/

[2] https://www.aegon.co.uk/content/ukpaw/news/aegon_uk_pays_overp139minprotectionclaimsin2021.html

[3] https://www.aegon.co.uk/about-aegon/our-history.html

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