Joe Davine

Review of AA Life Insurance

AA Life Insurance, the UK's leading term assurance provider that is designed with your loved ones in mind. Products include family and mortgage insurance, over 50's plans with guaranteed acceptance, and critical illness cover.

With the flexibility of terms and the affordability of policies starting as low as £6, AA Life Insurance offers a simple way to give family a peace of mind when faced with the unexpected.

Members of AA receive additional benefits and discounts.

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Pros
  • No medical or blood test required
  • Whole of Live available to Over 50's
  • Up to 90 day Accidental Death coverage while application is being reviewed
  • Accident Hospitalisation benefit with Critical Illness cover
  • Automatic Children Critical Illness if cover is purchased
  • AA membership discount
Cons
  • No Whole of Life available below 50 years old
  • Policy cannot end before 29th birthday
  • Not all forms of cancer are covered under Critical Illness

Insurance Options: Our Honest Breakdown

Each level of AA Life Insurance has its own criteria. All policies are Term with the exception of Over 55 which is a Whole of Life policy. Covers begin as low as £6 per month.

All policies come with an Accidental Death benefit, but some restrictions may apply.

Free Life Cover is also a cover that is automatically added to all policies. This protects you during a move between the exchange of contracts and completion of property purchase.

Family Insurance

AA Life Insurance for level term insurance. This means the cover level remains the same unless you make a change to it. Pays a lump sum in the event of death or diagnosis of a terminal illness such as cancer where life expectancy is less than 10 months. Between ages of 18 and 77 can apply for a minimum term of 1 year up to 50 years. The policy must end before age 90.

Critical Illness Cover

Critical illness cover is designed to help the financial stress one would face if diagnosed with a critical illness. AA Life Insurance will pay out if you are diagnosed with a critical illness while the policy is in force. The illness must meet the definition set out by Legal & General’s and be verified by a specialist at a hospital within the UK.

Applicants are to be between ages 18 and 67. Term options from 2-50 years are available. When a level term policy is paired with this CIC, the policy must end before age 70.

As an added bonus any child you have, or will have in the future, is covered automatically under the Critical Illness cover. From 10 days old to their 18th birthday, or 21 if they are a full-time student. For a child, the policy will pay out50% of the cover up to a maximum of £25,000.

Decreasing Term AA Life Insurance

Decreasing level term policy is designed to help with repayment mortgages. The premium remains the same over the policy life, but the amount of cover reduces as the policy ages. It works in a line roughly with how a mortgage repayment decreases. Ages to apply are 18-74 with term limits of 5-50 years. The policy must end before age 90.

Decreasing Term with Critical Illness Cover

This policy is the same as the Decreasing Mortgage Life. but will pay out in the event of a diagnosis of a critical illness. This Decreasing Term policy paired with CIC has a few differences over the regular Decreasing Term policy. They are; the age to apply, which changes to 18-64; the terms, which become 5-40 years; and this policy must end before age 70.

Over 50's AA life insurance

This AA insurance policy is guaranteed acceptance for those who have are ages 50-80. It is a Whole of Life policy and pays out if the insured dies. The policy must be active for one year to pay out. This policy is designed to help with funeral costs, debts, or to simply leave loved ones a gift.

Waiver of Premium Option

This is an optional addition to your AA Life Insurance quote and must be added when the application is submitted. It is at an additional cost.

In the event of incapacitation due to injury or illness, you will not have to pay premiums after a period of 26 weeks. Certain criteria apply for this option to take effect.

AA Life Insurance Review - Conclusion

If the option of guaranteed premiums is given then the premium will remain level for the life of the policy. If the option of renewable premiums is given then the policy will be reassessed every five years. Your premium may increase, decrease, or remain the same. If they increase and you opt out of paying the higher premium, your cover amount can be decreased to match a premium level you wish to spend.

When purchasing a policy intended to repay a mortgage, ensure that the amount of cover is equal to or more than your outstanding mortgage amount. If you make changes to your mortgage even in the slightest you may not be able to completely pay off your mortgage unless you make the necessary changes to your policy.

AA Life Insurance is provided by and is underwritten by Legal & General. Under the agreement, the AA introduces its customers to Legal & General's insurance products. Legal & General provide the product and any services related to it.

Why wait? Click here to receive your free life insurance quote now.

Our AA life insurance review has covered all the aspects of UK based AA insurance company. If you found it helpful, please don't hesitate to grab yourself a free quote below!