The average life insurance cost in the UK varies depending…
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?
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…
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.
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:
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…
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?
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 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:
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:
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.
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).
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:
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.
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 ± .
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†.
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:
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:
At Reassured, our life insurance starts from as little as 20p-a-day. So why not get in touch for your FREE quotes?
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.
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.
Aegon will not pay out if:
To make a claim through Aegon, you’ll need to contact them directly. You’ll then be allocated a claims assessor.
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 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.
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.
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.
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.
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.
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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Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.Sera Woolley
I made the right choice and now I feel relieved that I did.glyn
Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!Katelia Merritt
I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry