Aegon life insurance UK [2023]

As of April 2023, Aegon UK is now part of Royal London and is no longer accepting any new life insurance applications.

All existing customers’ policies will transfer to Royal London in 2024, subject to court approval[1].

At Reassured, we can source life insurance quotes from alternative insurers to help you find affordable protection for your loved ones.

Make the most of our award-winning service by getting in touch.

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

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

This in-depth Aegon life insurance review explores their previous life cover and protection options to help you make a comparison with other insurers.

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

While you can’t take out life insurance with Aegon, there are plenty of other options to choose from so you can ensure your family are protected.

At Reassured, we can compare multiple life insurance quotes from some of the UK’s best life insurance providers to help you find an affordable deal.

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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 offered 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 previous life insurance options…

Aegon life insurance reviews

Aegon life insurance UK 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, the UK’s largest life insurance broker * , is rated ‘Excellent’ on Trustpilot from over 70,000 customer reviews.

Our service helps you to compare life insurance quotes from a panel of highly rated UK insurers including Aviva, AIG and LV=.

How much life insurance do you need?

Work out how much life insurance you may need based on your current financial commitments and what you want your policy to cover. Simply fill in the fields which apply to you for an instant calculation.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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Aegon life insurance policy

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

Within the personal protection policy you could 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

The option(s) you were covered for depended on what you choose during the application process.

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

Aegon also offered a separate whole of life insurance policy.

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

Term life insurance

Aegon offered 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 reduced each month).

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

You also had the option to take out cover on a joint basis. Joint life insurance covers two lives simultaneously under one policy.

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

All term policies included terminal illness cover as standard. Terminal illness cover allows 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 could 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 had 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 was 5 years, up to a maximum of 50 years.

You could choose to add critical illness cover to your policy for an additional cost, this would 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 would expire.

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

Critical illness cover

39 medical conditions were 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 could be taken out as a standalone policy, or it could be added to a life insurance policy for an additional cost.

You could 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 was 5 years, with a maximum term of either:

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

Critical illness cover with Aegon also included 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 would be capped at £25,000 or 50% of your sum assured per child per insured person. A lump sum of £5,000 would also be paid if the child passes away.

Life insurance with critical illness cover

Critical illness cover could 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.

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

At Reassured, we can compare quotes for life insurance with critical illness cover from just 33p-a-day º . Simply get in touch for your free quotes.

Income protection insurance

Aegon income protection offered 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 was available to those aged 18 - 59 and your cover must end by the time you’re 70.

There were two different policy types 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 offered 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 also had 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.

It’s no longer possible to take out Aegon income protection, however, Reassured Advice can help you to compare alternative income protection policies from all other major providers.

Compare Income Protection Quotes »

Whole of life insurance

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

This policy type was separate to the personal protection policy.

The funds from a 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 had 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 included terminal illness cover.

Reassured can help you to compare multiple whole of life insurance quotes to help you find our 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) wasn’t something 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).

Over 50s plans are similar to whole of life insurance 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.

At Reassured, we can help you compare over 50s plan quotes without charging you a fee. Premiums start from just £5 a month + .

How much is Aegon life insurance?

Aegon didn’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 to calculate your monthly premium includes:

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

Insurers 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 had 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 was 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 could 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 gave you the option to choose a joint policy that either paid out on a first-death basis or a second-death basis (this means the pay out will be made upon the death of the second party).

You could choose whether you wanted a first-death or second-death policy during the application process.

Aegon also offered the ‘life replacement option’ with first-death joint policies. This is a feature that would 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 all 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 is 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.

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

Accidental death benefit

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

If you sustained an injury and pass away as a result within 90 days, a pay out would be made. This benefit would 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 or you purchase a bigger house it can be possible increase your level of cover without the need to provide new medical information. This benefit was included with all Aegon 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 would 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

Was available with first death joint life insurance policies. This allows the surviving partner to secure a new life insurance policy without having to provide any new medical information.

Additional critical illness benefit

This was 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 could 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 for existing customers:

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.

Aegon life insurance review summary

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

Their personal protection policy offered flexibility and their service was rated highly by customers.

Unfortunately, Aegon no longer sell life insurance or any other protection policies, and all existing policies are now held by Royal London.

Why not use the UK’s largest life insurance broker, Reassured, to help you find the right life insurance to suit you and your family?

We compare quotes from some of the UK’s best insurers, including Aviva, AIG and LV=, to help you save money.

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.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/personal/insurance/claims.html

The information used in this article has been taken from the Aegon website and is correct as of 02/08/23. This information may be subject to change at the discretion of the insurer.

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