Aegon life insurance UK [2022]

If you’re searching for family life insurance, you may have seen offerings by Aegon available on the market.

But who are Aegon and is their life insurance any good?

This in-depth Aegon life insurance review explores their life cover options to help you find out if they’re the right provider for you.

From the types of policies that Aegon offer and their additional policy features, to whether they pay out, this article covers everything you need to know.

Aegon isn’t an insurer we can help you compare life insurance quotes for here at Reassured. However, we can compare quotes from a panel of some of the UK’s best life insurance providers.

Going straight to the insurer is unlikely to get you the best deal, so why not use our award-winning brokerage to help you compare multiple quotes and secure the best price?

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Who are Aegon?

Aegon started as a Scottish Equitable back in 1831 and has since become a global brand and one of the world’s largest financial service organisations.

Aegon now offer a range of products including life insurance, income protection, long-term savings solutions, investments and pensions.

Keep reading to find out more about Aegon and their life insurance options to establish if they’re the insurer for you…

Is Aegon a good life insurance company?

Aegon life insurance reviews are generally positive, with customers rating their service as ‘Great’ on Trustpilot with 4 out of 5 stars.

While this is a good rating, it refers to Aegon products as a whole and not just their life insurance.

Reassured are rated ‘Excellent’ on Trustpilot with over 55,000 customer reviews.

We can’t compare Aegon life insurance quotes, but we do work with a panel of some of the UK’s top insurers.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.
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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.
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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.
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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.
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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
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Your total cover estimate

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Aegon life insurance policy

Aegon offer the ‘personal protection policy’ which offers flexible options to meet your financial protection needs.

Within the personal protection policy you can choose to be covered by the following:

  • Term life insurance (level and reducing terms)
  • Family income benefit (FIB)
  • Critical illness cover (CIC)
  • Life insurance with critical illness cover
  • Income protection

Which option(s) you’re covered for will depend on what you choose during the application process.

There’s a multi-benefit and/or multi-policy discount offered to those securing more than one type of cover. This benefit will increase with the number of policies taken out.

Aegon also offer a separate whole of life insurance policy.

Below we analysis each of these cover types offered by Aegon…

Term life insurance

Aegon offer both level and decreasing (reducing) term life insurance.

With a level term life insurance policy, your pay out sum (sum assured) remains fixed throughout the life of your policy.

Whereas, with a decreasing or reducing term policy, your sum assured will reduce throughout the policy lifetime (Aegon reducing term cover reduces each month).

The minimum term length for level term life insurance is 1 year, and the minimum term length for reducing term life insurance is 2 years. Both have a maximum term length of 50 years.

You also have the option to take out cover on a joint basis, this means that two lives will be covered simultaneously under one policy.

This article will be discussing Aegon joint life insurance in more detail below.

All term policies will include terminal illness cover as standard, this will allow you to make an early claim on your life insurance if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.

You can also choose to add critical illness cover to your policy for an additional cost.

Reassured offer both level term and decreasing term life insurance which can be taken out from just 20p-a-day.

Why not get in touch to compare quotes and find your ideal policy?

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Family income benefit

Aegon family income benefit will pay out to your loved ones in monthly income payments after your passing.

For example, if you have a 30 year policy and you pass away 10 years into the policy, it will pay out to your loved ones every month for the remaining 20 years.

The minimum term length for an Aegon family income benefit policy is 5 years, up to a maximum of 50 years.

You can choose to add critical illness cover to your policy for an additional cost, this will be classed as a ‘family income benefit with critical illness cover’ policy.

In this instance cover will also pay out if you’re diagnosed with a serious illness, listed within your policy, and payments will be made in monthly instalments rather than a lump sum.

Once a critical illness claim has been made, your family income benefit policy will expire.

You’ll also benefit from having terminal illness cover added to your policy at no extra cost.

Critical illness cover

39 medical conditions are covered within Aegon critical illness cover, including heart attack, cancer and stroke.

Critical illness cover will pay out to you in the event you’re diagnosed with a serious illness.

Aegon critical illness cover can be taken out as a standalone policy, or it can be added to a life insurance policy for an additional cost.

You can also choose between the following terms for critical illness cover through Aegon:

  • Level - Pay out sum remains the same
  • Reducing - Pay out sum will reduce over the policy lifetime
  • Family income benefit - (pay out will be made in monthly instalments for the remainder of the policy term rather than a lump sum - this is known as critical illness family income benefit)

The funds from critical illness cover can be used to help replace lost income while you’re too ill to work, cover medical bills or pay for carers.

The minimum term for critical illness cover through Aegon is 5 years, with a maximum term of either:

  • 50 years (if you choose to have reviewable premiums, these are premiums that are subject to change at the discretion of the insurer)
  • 40 years (if your premiums are not reviewable. If premiums are not reviewable, they will be guaranteed)

Critical illness cover will also include protection for your children. A lump sum will be paid if your child is diagnosed with, and meets the definition of, an illness listed within the policy and lives for 10 days from when they were first diagnosed.

Payments will be capped at £25,000 or 50% of your sum assured per child per insured person. A lump sum of £5,000 will also be paid if the child passes away.

Life insurance with critical illness cover

Critical illness cover can be added to Aegon life insurance policies for an additional cost.

Having critical illness cover added to your life policy will allow you to make an early claim and receive an early pay out if you’re diagnosed with a serious illness.

The funds received could help you to replace lost earnings while you’re off work, pay medical bills or a home carer.

Once a critical illness cover claim has been made, your life policy will expire and you may need to arrange new cover.

Life insurance with critical illness cover has a minimum term length of 5 years and a maximum of 40 (with guaranteed premiums) or 50 years (with reviewable premiums).

Income protection insurance

Aegon income protection offers to pay out up to 65% of your usual income (up to a maximum of £20,833 a month) if you’re unable to work as a result of sickness or accident.

Income protection through Aegon is available to those aged 18 - 59 and your cover must end by the time you’re 70.

There are two different policy types for you to choose from:

  1. Income protection (long-term - minimum term 5 years, up to a maximum of 51 years)
  2. 2-year income protection (short-term - maximum term 2 years)

Payments will commence if you’re still unable to work after your deferred period has come to an end. Aegon offer deferred periods of 4, 8, 13, 26 or 52 weeks.

Payments will cease if you return to work, if you pass away, if you retire, if the payment period comes to an end or if your policy expires.

You’ll also have the choice between two definitions of incapacity; own occupation (unable to complete your specific job role) and activities of daily work (you can't perform 3 or more daily tasks such as walking, reading, bending, dexterity etc).

If you pass away while paying premiums for your income protection policy, Aegon will pay out a lump sum pay out of £5,000 to your loved ones to help ease financial strain.

Reassured Advice can help you to compare Aegon income protection with other major providers who offer to pay out up to 70% of your usual income.

Compare Income Protection Quotes »

Whole of life insurance

Aegon whole of life insurance is guaranteed to pay out a lump sum to your loved ones upon your passing.

This policy type is separate to the personal protection policy.

The funds from your whole of life insurance policy can help to provide your loved ones with an inheritance or help cover any inheritance tax that may be charged on your estate (40% on anything above the £325,000 threshold).

You have the option to take out Aegon whole of life insurance as a single or joint policy. Taking out a joint policy will mean that two lives are covered under the same policy.

Aegon whole of life insurance also includes terminal illness cover.

Reassured can help you to compare multiple whole of life insurance quotes to help you find the best deal. Whole of life insurance through Reassured starts from 27p-a-day ± .

Aegon over 50s life insurance

Over 50s life insurance (or over 50s plan) isn’t something that is currently offered by Aegon.

An over 50s plan is a policy designed for those aged 50 and over, guaranteeing acceptance up until the age of 85.

What makes an over 50s plan different is that you aren’t required to provide any medical information during the application process.

Your premiums will simply be calculated using your age and sum assured (and sometimes your smoking status).

If looking to take out cover with Aegon over the age of 50, you may consider their whole of life policy.

Whole of life insurance and over 50s plans are similar in the sense that they’re both a form of life assurance and will guarantee a pay out to loved ones.

However, you’ll need to disclose medical information when applying for whole of life cover.

Alternatively, you could use the services of Reassured to compare multiple over 50s plans. Premiums start from just £5 a month†.

How much is Aegon life insurance?

Aegon don’t display any pricing information on their website. However, as with all providers, the price you pay for your cover will depend on a variety of factors.

Key information that will be taken into consideration includes:

  • Your age
  • Your current health and wellbeing
  • Your medical history
  • Your weight/BMI
  • Your smoking status
  • Policy type
  • Sum assured

Aegon will use this information to determine the level of risk involved with covering you (the likelihood of a claim being made). The greater the risk, the higher the life insurance premium.

Aegon life insurance premium payment

The cost of Aegon life insurance can also be influenced by which premium type you opt for. With Aegon, you have two choices:

  1. Guaranteed premiums - These are premiums that won’t change, so you’ll never pay more for your cover
  2. Reviewable premiums - These are premiums that will be reviewed and are subject to change throughout the life of the policy, so you could end up paying more over time (reviews will occur every 5 years). This option is only available on life insurance with critical illness policies or standalone critical illness policies

At Reassured, our life insurance starts from as little as 20p-a-day. So why not get in touch for your FREE quotes?

Aegon joint life insurance

All Aegon life insurance policies can be taken out on a joint basis.

Joint life insurance protects two lives simultaneously under one policy. Information about both parties is taken through one application and there’s only one premium to pay (this can help you to save money compared with two single policies).

This also means that there’s only one pay out. Typically, this would be upon the first death.

However, Aegon joint life insurance can pay out on both a first-death basis and second-death basis (this means the pay out will be made upon the death of the second party).

You’ll need to choose whether you want a first-death or second-death policy during the application process.

Aegon also offer the ‘life replacement option’ with first-death joint policies. This is a feature that will allow the surviving partner to secure a new single life insurance policy without providing any new medical information.

Does Aegon pay out?

In 2020, Aegon paid out 96% of life insurance claims and, over the past three years, 97% (on average) of claims have been paid out.

In 2020, Aegon paid out over £139 million in claims in total to help families and businesses[1].

Aegon will not pay out if:

  • The death is as a result of suicide (if within the first 12 months)
  • If the death was intentionally caused and/or arranged by the policyholder
  • If non-disclosure is discovered (this refers to not telling the truth during the application process, for example, not informing the insurer about your smoking habit)

How to claim Aegon life insurance?

To make a claim through Aegon, you’ll need to contact them directly. You’ll then be allocated a claims assessor.

  • Aegon contact number: 03456 00 04 93 (you'll be charged for calling this number, call charges will vary depending on your provider)
  • Or you can write to:
    Claims Department
    Aegon Protection
    Sunderland
    SR43 4DJ
  • Your claims assessor will gather all the information required to make a claim
  • You’ll likely need to provide proof of the death by copy of a death certificate
  • Once all relevant information has been collected, and upon receipt of a successful claim, a pay out will be made
  • If the policy is written in trust, the pay out will be made to the trustee to distribute
  • If the policy isn’t written in trust, the pay out will be made to the remaining policyholder (if a joint policy), to a registered civil partner or as per the wishes of the policyholders Will

Additional policy features

Terminal illness cover

Will allow you to make an early claim on your life insurance policy and receive an early pay out. Funds can be used to cover medical treatment, help get your financial affairs in order or enjoyed spending time with loved ones.

Comes as standard at no extra cost with all life policies through Aegon.

Accidental death benefit

Accidental death benefit is automatically applied to all policies (at no extra cost) for applicants under 55 and will provide cover while Aegon assess your application.

If you sustain an injury and pass away as a result within 90 days, a pay out will be made. This benefit will cease on your 55th birthday.

Guaranteed insurability

Guaranteed insurability is sometimes referred to as the life changes option. This will allow you to change your cover amount to suit ever changing needs.

For example, if your family grows, you purchase a bigger house it can be possible increase your level of cover without the need to provide new medical information. This benefit is included with all life policies.

Waiver of premium

A waiver of premium is an optional benefit which will allow you to pause your premium payments for a set period if you’re incapacitated and unable to work due to sickness or accident.

You will need to inform Aegon that you would like to benefit from this during the application process (unless with an income protection policy, where it’s automatically included).

Life replacement option

Available with first death joint life insurance policies. This will allow the surviving partner to secure a new life insurance policy without having to provide any new medical information.

Additional critical illness benefit

This will be automatically added to any critical illness family income benefit policies which will allow you claim for a greater list of illnesses.

Trust

Aegon life insurance policies can be written in trust free of charge. This is a process that involves detaching your life insurance policy from your estate, helping to avoid/minimise 40% inheritance tax for your loved ones.


Policy plus:

Health and wellbeing service

Provides you and your immediate family with support through phone based counselling and online tools. Available 24/7.

Second medical opinion service

Will allow you access to a personal medical professional to discuss your diagnosis and determine whether a second opinion is necessary. You’ll also have access to have long-term support as well as recommendations and treatment advice.

Funeral payment pledge

Aegon will pay out a lump sum of up to £10,000 to a funeral director or funeral home on life insurance claims where probate has caused a delay.

Is Aegon the right provider for you?

Hopefully this Aegon life insurance review has helped to highlight some key information about Aegon and their life cover options.

Their personal protection policy offers great flexibility and their service is rated highly by customers.

Ultimately, whether they’re the right insurer for you will depend on your unique needs and your available budget.

It’s always wise to compare a range of quotes throughout your life insurance search to ensure you’re getting the best value for money on a policy that meets all of your needs.

Although we can’t compare Aegon life insurance, we can help you compare quotes from some of the UK’s leading providers, as well as smaller specialists, to ensure you secure the best deal.

Simply get in touch with one of our friendly life insurance experts.

Aegon life insurance quotes

While we can’t provide you with Aegon life insurance quotes here at Reassured, we can help you to compare quotes from other leading providers.

Comparing quotes is essential in ensuring you secure the best policy to meet your needs for the lowest possible price.

By taking your unique circumstances into consideration, a friendly member of our team will be able to present you with all of your available options - allowing you to make an informed decision.

We’re also on hand to answer any questions you may have and decode any confusing life insurance jargon.

The best part is our life insurance starts from just 20p-a-day.

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Sources:

[1] https://www.aegon.co.uk/personal/insurance/claims.html

The information used in this article has been taken from the Aegon website and is correct as of 21/01/22. This information may be subject to change at the discretion of the insurer.

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Very easy to understand and very quick

Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!

Mrs M Rushworth

Very professional and reassuring

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