AA Life Insurance Cover Review
A variety of life insurance products is available including level term, decreasing term, and 50 plus.
AA life insurance is available from Automobile Association Insurance Services Limited and is provided by Friends Life Limited.
This saves you time and effort so you can focus on making a policy decision rather than looking for coverage. When searching for the best deal for you, we compare AA life insurance policies.
A Minimum Commitment
Level term life insurance from AA starts at just £5 per month. It pays a guaranteed cash sum if the insured dies during the policy term.
This policy is designed to replace the income of the insured so beneficiaries can maintain their standard of living.
Consumers can determine the coverage level, policy term, and select individual or joint coverage. Premiums are guaranteed not to increase and coverage is guaranteed not to decline as long as monthly premiums are paid. If their circumstances change, policyholders can increase their coverage.
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Decreasing term life insurance is designed to repay a balance on a repayment mortgage upon the death of the insured during the policy term. It features coverage that decreases with the balance of a standard repayment mortgage. This policy can also be used to cover a loan balance. The premium is lower than that of a level term insurance policy, starting as low as £5 per month, is established when the policy begins, and is guaranteed not to increase.
Consumers can take an individual decreasing term policy or select joint coverage with a partner, which will pay out on the first death and then end. They also select the policy term and coverage level. Each month during the term, the coverage amount decreases. Coverage is calculated to be sufficient to repay the capital owed on a repayment mortgage. If circumstances change, the insured may increase the coverage level.
Choice Protection If Required
A premium protection option is available with both level and decreasing term life policies. With optional premium protection, also called waiver of premium, life insurance premiums will be paid by the insurance company if non-self-inflicted injury or illness keeps the insured out of work for more than six months. The payments will cease when the insured is deemed medically able to return to work.
An insured age 18 to 54 may also add critical illness coverage to a level or decreasing term life insurance policy that lasts for between five and 40 years. If the insured is diagnosed with a covered critical illness, a lump sum will be paid. Stroke, heart attack, multiple sclerosis, and many cancers are covered illnesses.
Specific illnesses may be excluded from coverage and these will be explained before the policy goes into effect. In some cases, the premium for a life insurance policy that includes critical illness coverage may not be guaranteed. Premiums could increase or coverage could decrease. Inflation may reduce the coverage value.
Pays After One Year
For UK residents age 50 to 80, 50 Plus life insurance provides a cash sum to beneficiaries upon the death of the insured, provided that the policy has been in effect for at least one year. If the insured dies within the first year, a payout of 1.5 times the premiums paid will be made.
If the death is due to an accident, the full sum will be paid. Acceptance is guaranteed, no health questions are asked, and a medical examination is not required. The premium starts at £8 per month and is guaranteed not to increase (unless the increasing coverage option is selected).
Coverage continues as long as premium payments are made. If payments cease before the 90th birthday, coverage is cancelled and money paid will not be refunded. Inflation can reduce the future value of the cash payout and total premiums paid may exceed the benefit. To help address this, an increasing coverage option is available when the coverage is purchased. With this, the cash sum and premiums increase by five percent of their initial level each year.
A funeral benefit option through Golden Charter is available at no charge to help with funeral costs. It features a £250 voucher for funeral expenses for a funeral arranged by Golden Charter, even if the insured dies within the first year of the policy.
This sum is not subject to probate and is paid to Golden Charter directly to compensate the selected funeral director. If the funeral costs less than the cash benefit, the difference is paid to the estate. If it costs more, the estate or family must pay the difference.
Life insurance is important for anyone who has a financial dependent. Surviving beneficiaries will receive a cash benefit to apply toward the mortgage, bills, and household expenses. Level term, decreasing term, and 50 plus life insurance coverage are available from AA and we provide comprehensive details regarding policies suitable for you, as well as optional premium protection, critical illness, and funeral benefit coverage.