The AA offered both level term and decreasing term life insurance cover.
Level term life insurance started from £6-per-month but could’ve cost significantly more, dependant on a variety of factors, including your smoking status, age and health.
This type of life insurance involved paying a monthly premium for the duration of the policy term. If you were to pass away during the set term, a fixed pay out would be made to your beneficiaries.
The AA offered decreasing term life insurance cover too, which also started from £6-per-month but again was dependent on your personal wellbeing and habits.
Like with level term, these policies involve paying a monthly premium and if you died during the term, provided a lump sum pay out to your loved ones.
Decreasing term is ideal for covering a repayment mortgage as unlike level term the pay out amount decreases over time. This means the lump sum could be set to mirror the remaining balance of a mortgage. Generally, this is a more cost-effective policy option.
The AA provided free life cover between the exchange of contracts and completion of your purchase if you’re in the process of buying a property.
All term policies were available with optional premium protection, where the AA committed to paying the premiums if the policyholder experienced non-self-inflicted injury or illness which prevented them from working for six weeks or more.
This would have continued until the policyholder was deemed medically able to return to work, however, this waiver of premium option did come at an additional cost.
Like the majority of policies, AA life insurance included free terminal illness cover, meaning that if you were diagnosed with a terminal illness and expected to die within 12 months, you could access the funds early.
At Reassured, we can help you arrange term-based life insurance, whether increasing or decreasing, and all our policies come with terminal illness cover as standard.