Aviva life insurance, (read before you buy)

In this post, we review the life insurance products offered by the largest insurance provider in the UK, Aviva.

Aviva life insurance products available include:

  • Level term insurance
  • Increasing term insurance
  • Decreasing term insurance
  • Over 50s life insurance
  • Critical illness cover

At Reassured, we can help you arrange these types of cover with other leading insurers, such as Legal & General and AIG, from just 20p-a-day.

Our FCA registered broker service are able to compare multiple quotes and find you the best deal.

Join the other 814,000 families in the UK who’ve secured life protection with Reassured and contact our award-winning team today, (it’s FREE).

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About Aviva life insurance

The history of Aviva as an insurance provider in the UK goes all the way back to 1696.

Starting out as 'Hand in Hand', then 'Norwich Union' in 1797 and eventually becoming 'Aviva' in 2002.

Aviva is now the largest UK insurance company and one of the biggest insurers in Europe. They also operate internationally in over 16 countries.

Aviva is probably best known for its insurance products, such as car, home and life insurance.

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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Aviva level term insurance

This works in the same way as other level term insurance policies.

You arrange a fixed lump sum pay out (or sum assured) to go to your loved ones if you were to pass away within the term.

The cover remains in place for a specified term length, from 1 to 50 years, and the sum assured doesn't change.

If you were to pass away before the term ends, then your loved ones will receive a full pay out.

This type of cover is commonly used to cover:

You may also want to leave behind some funds to cover the cost of your funeral or to provide an inheritance for loved ones.

Aviva increasing term insurance

Some life insurance policies can be set up with increasing term insurance.

This is similar to level term insurance, however, the level of cover will increase annually in line with inflation.

If you're mindful that you may not pass away for quite some time, then you could protect your pay out from being worth less in the future.

This way you'll still have a sufficient pay out sum to cover all the original costs that you took out a life insurance policy for.

Aviva increase the amount of cover as determined by the Consumer Prices Index (CPI), to a maximum of 10% increase.

Your monthly premiums would also increase to a maximum of 15%.

Aviva decreasing term insurance

Also described as Aviva’s mortgage life insurance, decreasing term insurance is the opposite of increasing term insurance.

A decreasing term policy will (as the name suggests) provide a decreasing level of cover over time, although premiums remain fixed.

This type of policy is typically chosen to cover a repayment mortgage, where the outstanding balance decreases as time passes.

The policy length is usually set to mirror that of the mortgage, protecting what is for the majority of us, our most valuable asset.

So, if you were to pass away during the term, your loved ones would be able to cover the mortgage and remain in the family home.

It's common across different insurers for decreasing term cover to be cheaper than other policy types and Aviva is no different.

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Aviva over 50 life insurance

Over 50s insurance, also known as an over 50s plan, offers a guaranteed pay out to your loved ones after you pass away.

This form of cover is often used to cover a funeral, clear outstanding debts and/or leave an inheritance.

The insurer usually bases your premium on how much you can afford each month. With Aviva this can be from £5 up to £100 per month.

As with other over 50s plans, the key benefit is you're not required to provide any medical information to Aviva to secure cover.

Aviva currently employ a 12-month waiting (or qualifying) period.

So, if you were to pass away with in the first 12 months of natural causes, you won't receive a pay out and your premiums will be refunded to your family.

Aviva also describe this as their whole of life policy, as cover lasts for the rest of your life. However, premium payments will finish either on your 90th birthday or after 30 years of the policy.

Aviva used to offer a £50 M&S voucher to new customers taking out an over 50s plan, however, currently, they're not offering a welcome gift.

An over 50s plan could be a good alternative to a funeral plan, as the sum assured is usually sufficient to cover the cost of a funeral (and more).

The cost of a funeral has rapidly increased in the UK over recent years and is set to increase further.

Funeral plans are not affected by inflation, however if you've an over 50s plan then it's possible the value of your pay out will decrease over time.

Aviva doesn't offer a funeral plan option, however, you could take out a funeral plan separate to your life insurance.

At Reassured, we offer over 50 life insurance to anyone aged between 50 to 85 years old. We can also compare a number of funeral plans.

Aviva house purchase cover

Aviva offers 90 days free life insurance if you're taking out a life insurance policy to cover your mortgage.

Once the purchase of your new home is completed, your cover will commence.

This benefit for many is worth taking advantage of, particularly as it's free.

Aviva critical illness cover

Critical illness cover can be included with level term or decreasing term policies, with a term between 5 to 50 years.

If you're diagnosed with a critical illness (and survive more than 10 days), you’ll be able to make a claim on your policy.

This could provide financial protection for you and your family at a time when you're unable to work.

To take out critical illness cover with Aviva you need to be aged 18 - 64 years old and the maximum cover is £1 million, (although this sum will be unnecessary for most).

Aviva covers 54 medical conditions, including Alzheimer’s disease, heart attack, cancer and stroke.

You’ll receive a pay out if diagnosed with a critical illness, that is specified in the policy, (and you survive more than 10 days).

It's important to note that once you've made a claim, then the policy will end and you'll no longer be covered.

Some medical conditions come under their critical illness benefit, of which they pay out only a percentage of your total cover amount, to help with any surgery or treatment.

Meaning you'll be left with the remaining cover if you were to fall ill again.

Reassured are able to offer critical illness cover as a standalone policy, which can be taken out alongside your life insurance policy. This way your life will always be protected if you become critically ill.

With Aviva’s critical illness plan, your children would also be covered for any of the specified illnesses.

As long as the child is between 30 days and 21 years* and survives the illness for at least 10 days, then a percentage of the cover amount will be paid out, (up to 50% and a maximum of £25,000).

If the child was to pass away during the policy term, then Aviva will pay a children’s death benefit of £5,000 on top of any funds received with critical illness cover.

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Aviva free parent life cover

If you're a parent in the UK and have a child or children under the age of 4, then you could be eligible for free parent life cover with Aviva.

Aviva offers up to £15,000 worth of cover, with zero premiums, for parents between the ages of 18 to 66.

Although, it's always sensible to check your eligibility and any terms and conditions.

Aviva terminal illness cover

Like other life insurance providers, Aviva offer free terminal illness cover as standard with each life insurance policy.

If you're diagnosed with a terminal illness and predicted to pass away within 12 months then you would be able to make an early claim on your policy.

The pay out could be used to help your dependants cope with the loss of an income, pay for a carer or make adaptions to your home to make your last days more comfortable.

Aviva life insurance cost

The sum assured can be up to £5 million for level or decreasing cover.

Although, for most, this level of cover is simply not necessary.

As usual, your premiums will be calculated based on your age, health and if you smoke. Along with the term length and the sum assured of your policy.

As mentioned, the cost of an over 50s plan from Aviva is between £5 and £100 per month and the sum assured is up to £25,000.

However, if you're over 50 but in good health, you may want to look at a whole of life policy.

The sum assured is much higher and the relative cost of your premium may be cheaper.

Aviva additional highlights

  • Aviva offer discounts on their other products to both new or existing customers
  • Aviva offer free parent life cover for one year if you have a child/children under 4
  • Their life insurance products are rated 5* by Defaqto
  • Aviva paid out 98.9% of claims in 2018
  • Aviva pay for the medical exam if you're required to have one
  • Any plans taken out with Aviva are protected by the Financial Services Compensation Scheme (FSCS)

Aviva life insurance in trust

Aviva provide their customers with the option to write their life insurance in trust.

Writing in trust means assigning a trustee control of your policy after you pass away.

The trustees will be responsible for making any claims and distributing the pay out as per your wishes.

The main benefit of using a trust is that you can avoid 40% inheritance tax, as a pay out doesn't form part of your estate.

At Reassured we offer a free trust service on the majority of the policies we arrange, where we can guide you through the process and help with the application.

Compare Aviva life insurance quotes

Reassured are the largest life insurance broker in the UK.

We compare quotes from a wide range of leading insurers, including Legal & General, AIG and Zurich.

This means we're able to compare prices on a wide range of policies, including level term, decreasing term, whole of life, over 50s plans, critical illness and funeral plans.

Our highly knowledgeable advisors will provide you with all the information you need to help you find the right policy.

We can also guide you through the application process and explain any jargon.

And the best bit...our award-winning, FCA registered broker service is completely free to use.

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Sources:

https://www.aviva.co.uk/insurance/life-products/life-insurance/

https://heritage.aviva.com/timeline/

*if they are 18, 19, and 21 in fall time education.

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