Aviva Life Insurance Review 2021
Aviva is the largest UK insurance services provider and the fifth largest insurance group, with more than 45 million customers worldwide.
It is also a leading European life insurance provider. Consumers who are interested in mortgage life insurance, providing financially for loved ones, or adding coverage to their existing life insurance portfolio will find that Aviva Life Insurance offers a suitable product.
The best part is that they need not search for it themselves because we do all the work! During our market review for compatible products, we check the products available from Aviva and offer a comprehensive Aviva life insurance review.
We Compare The Top Insurers. Find The Best Cover For You & Help Provide Your Family With Financial Security
Low Premiums From Only £5
Aviva life insurance policies are term insurance that makes a lump sum payment to beneficiaries. Monthly premiums start at just £5 and are guaranteed not to increase during the policy term. Joint policies are available for partners and it takes only minutes to complete an application. Level and decreasing term policies are offered and both are highly rated by the industry. Aviva life policies do not have a cash-in value so failing to make premium payments will result in policy cancellation without a refund.
A simplified life policy provides life coverage only and a level and decreasing option are available. The level option is similar to term insurance and it provides a fixed lump sum payment if the insured dies during the specified term. This is designed to provide financial security to surviving beneficiaries or help cover the amount due for an interest-only mortgage.
Consumers may choose a coverage limit of up to £500,000 based on their age and policy term. Many people select a term that corresponds to when children will become financially independent or when the mortgage will be repaid.
The decreasing option resembles mortgage life insurance, providing coverage that decreases during the policy term and lump sum benefit upon the death of the insured during this term. By decreasing the coverage level, this policy helps to lower premiums.
The policy is designed for consumers with an outstanding loan balance of a repayment mortgage because the coverage level decreases in line with the balance on this borrowing. Up to £500,000 in coverage is available based on personal circumstances and the premium is guaranteed not to increase.
If an insured is diagnosed with a terminal illness and the life expectancy is shorter than 12 months, either plan will pay a benefit, as long as the diagnosis is not made during the last 18 months of the term. Once a benefit is paid due to a terminal illness claim, the policy ends. The terminal illness benefit is different from critical illness coverage, which is only provided with a term insurance or mortgage life insurance policy at an extra cost.
Life and critical illness coverage pay a lump sum benefit if the individual dies or is diagnosed with a covered critical illness and lives for 14 days or more. More than 30 medical conditions are included on the Aviva critical illness list. The benefit may be used for any purpose such as repaying a mortgage, handling expenses and bills, or funding a holiday for treatment recovery. There is no cash-in value for a life and critical illness policy and if premium payments cease, the policy will end and a refund will not be issued.
Trust Fund Ready
Either fixed or decreasing term life insurance can be placed into a trust. This allows the insured to leave money to specific individuals and avoid subjecting the lump sum benefit to inheritance tax. If a joint policy is taken, a payout is made on the first approved terminal illness or death claim and the plan ends.
Though this policy may be less expensive, the fact that it only pays one benefit may outweigh this. Partners may be able to purchase individual life policies for only slightly more than a joint policy and this will provide a lump sum benefit upon the death of each person.
When determining how much coverage they need, consumers should consider the amount of their rent or mortgage, living expenses, payments on credit cards or loans, daycare or education expenses for children, funeral costs, and other lifestyle-related expenses.
It is important to consider everything the money could be used for and build in extra for holidays and expenses for visiting friends and family members. Consumers should multiply the annual amount needed by between ten and 25 years to find a limit with an affordable premium, based on our research.
Aviva paid out for 99.7 percent of death claims during the first half of 2011, for a total payout of £150 million. The company takes pride in its quick and sympathetic handling of claims. If you need life insurance, Aviva may have a suitable product, so complete our online quote request form to find out.
We will include Aviva life policies in our market review and provide you with pricing and details regarding suitable plans.
Aviva Life & Pensions UK Limited
Registered Office: Aviva, Wellington Row, York, YO90 1WR.
Free phone 0800 953 1777 between 9.00am and 5.00pm Mon – Fri. If outside the UK call +44 203 761 1200.
Member of the Association of British Insurers. Firm Reference Number 185896.