Review of Aviva Life Insurance

Aviva is one of the biggest life insurance providers out there, and they have some great life cover options, striking a balance between simplicity and diversity. Their plans aren’t particularly customisable, but they offer a range of policies that give most people what they need. We've deconstructed them all for you right here to help you find the policy that's right for you.

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Pros
  • Terminal Illness coverage included
  • High maximum age for life cover
  • Extra options: Critical Illness Cover & Income Protection
Cons
  • Life insurance is only available in 2 policy types.
  • Policies can't be customised as much as other companies' policies can
  • Service is less personalised than other providers

About Aviva

Operating under one globally recognised brand, Aviva are one of Europe’s leading providers of investment, savings, and insurance products, serving 31 million people across all of their services.

Established in 1833, Aviva has since become the UK’s largest insurance provider, with over 13 million customers. They pay out over £34.6 billion in claims and benefits to their customers annually. The company offer a variety of strong insurance policies that includes a stand alone critical illness cover, a service which is rarely offered by other providers.

Insurance options: our honest breakdown

While Aviva only offer two types of term life insurance (increasing and decreasing term), they do provide an adequate range of life insurance policies, and break them down into clear categories that are easy to understand. They also offer life insurance with an extremely flexible length of cover, with term lengths of up to 50 years or until your 90th birthday.

Half of Aviva’s customers pay just £15 per month for their life insurance policy, and during 2017, 98.9% of life insurance claims submitted to them were paid out.

Aviva offers a critical illness cover which exists as a stand alone policy, starting around £18 a month, and covers 54 critical illnesses. They also offer an additional critical illness benefit which is available to be claimed on a number of stated ailments including Crohn’s disease, Ulcerative colitis, and low-grade prostate cancer. In 2017, £337m worth of claims went to customers diagnosed with a critical illness.

Aviva offer an over 50s life protection policy that requires no medical examinations, and has guaranteed acceptance. The policy ranges from just £7 per month to £50 per month, depending on the amount of coverage you choose, and lasts for your whole lifetime.

Aviva’s MyAviva app allows 24/7 quick and convenient access to all your policies and their details, in one place online. The app also allows you to access help and support from their customer service representatives, and to start a claim from your phone.

If that all seems a little much to take in, here’s a breakdown of each of Aviva’s policies:

Aviva Life Insurance

Aviva’s life insurance is divided into two policies: increasing term insurance and decreasing term insurance, and covers you for up to £5 million which pays out in a lump sum payment should you die during the term of the policy. Aviva life insurance offers you plenty of flexibility with the length of your cover, providing you with coverage for anything between 1 and 50 years.

Aviva’s life insurance policies suit most eventualities in life, covering you for terminal illness, and offering you a separation benefit, should you and your partner break up and need to split a joint policy into single policies. However, if you die outside of the policy term, or within the first year of the policy from suicide or self-inflicted injuries, you won’t receive a payout.

Increasing term life cover

With increasing term cover, your cover amount increases with inflation, and so do your monthly payments. At Aviva, the maximum annual increase is 15% to your premium, and 10% to your cover amount, so bear in mind that your premiums will rise at a faster rate than your cash benefit.

Whether you’re looking for Aviva life insurance to cover your salary, pay your child’s university fees, or continue to make mortgage payments, an increasing term cover may appeal to you. With an increasing term life insurance policy, you’re protected against the effects of inflation, ensuring the value of your cover doesn’t decrease over time.

Aviva increasing term cover includes:

  • A lump sum payment.
  • Up to £5 million worth of coverage available.
  • Free cover for 90 days, if you're in the middle of buying a house when you take out the policy.
  • Terminal illness cover.
  • Flexible cover length (from short-term to 50 years, or until you’re 90).
  • Cover that can be taken out between 18 - 89 years old.
  • A separation benefit.
  • The opportunity to customise your policy, in order to keep your premiums and cover the same.
  • Cover and premiums which increase throughout the policy. The maximum annual increase is 15% to your premium, and 10% to your cover amount.

Top Tip: While Aviva don’t offer a level term insurance policy, if you’re looking to keep both your cover and monthly premiums the same, you can take out an increasing term insurance plan and customise your policy accordingly.

Decreasing term life cover

With decreasing term cover, the amount of coverage you have goes down while your monthly premiums maintain at the same rate. This payment system can be a good option if you’re looking to pay off your mortgage or to cover any debts that you have to repay monthly.

Aviva decreasing term cover includes:

  • Guaranteed premiums.
  • Lump sum payment.
  • Free cover for 90 days if you're in the middle of buying a house when you take out the policy.
  • Terminal illness cover.
  • Flexible cover length (from short-term to 50 years, or until you’re 90).
  • Cover that can be taken out between 18 - 89 years old.
  • A separation benefit.
  • Cover which decreases throughout the policy.

Critical Illness Cover

Aviva’s critical illness plan, like their life insurance, is divided into two distinct policies: increasing term and decreasing term. Unlike with some other providers, this policy doesn’t have to be bought in conjunction with any other life insurance plan. This policy covers you and your child for 54 critical illnesses stated in the insurance contract, paying out a lump sum should either of you get diagnosed or require surgery. Their coverage extends up to £1,000,000 and can be taken out by anyone between the ages of 18 and 64.

It is worth noting however that in order to qualify for your payout, you’ll have to live for over 10 days after your diagnosis. You should also pay particular attention to the list of critical illnesses they cover, as some ailments and diagnoses have caveats that only offer coverage under specific circumstances. For example with HIV and AIDS, how and where you contracted the virus can influence whether or not you’re eligible for a payout.

From roughly £18 per month or less, Aviva’s critical illness plan is a good way of ensuring financial stability should you ever become unable to work as a result of your illness.

Increasing term critical illness cover

With an increasing term life insurance policy, you’re protected against the rise of inflation, ensuring the value of your cover doesn’t decrease over time. Like with Aviva’s increasing term life insurance, as the cover amount increases with inflation, so will your monthly payments. The maximum annual increase is 15% to your premium and 10% to your cover amount.

With Aviva’s critical illness cover you’re also covered for your child. If they fall ill with a critical illness (not terminal), Aviva will pay out a maximum of £25,000, or 50% of your cover amount, depending on which is less.

Aviva’s increasing term critical illness cover includes:

  • Coverage for you and your child for 54 critical illnesses.
  • A lump sum payment.
  • Flexible length of cover (from 5 to 50 years).
  • Cover that can be taken out between 18 - 64 years old, and can last until you’re 75.
  • Up to £25,000 worth of cover for you child, or 50% of the cover amount (whichever is lower).
  • A separation benefit.
  • Up to £1 million worth of cover.
  • An additional critical illness benefit, which can be claimed if you’re diagnosed with any one of their specifically stated illnesses or ailments.

Decreasing term cover

With decreasing term cover, the value of your coverage decreases until it’s at zero, while your monthly premiums stay at the same rate. This payment system can benefit you if you’re looking to pay off your mortgage or cover any debts that are repaid over time. See below for the specific details of Aviva’s decreasing term critical illness cover:

Aviva’s decreasing term critical illness cover includes:

  • Covers you and your child for 54 critical illnesses.
  • Pays out in a lump sum payment.
  • Flexible length of cover (from 5 to 50 years).
  • Cover that can be taken out between 18 - 64 years old, and can last until you’re 75.
  • Provides up to £25,000 worth of cover for you child, or 50% of the cover amount (whichever is lower).
  • A separation benefit.
  • Offers up to £1 million worth of cover.
  • An additional critical illness benefit, which can be claimed if you’re diagnosed with any one of their specifically stated illnesses or ailments.

Over 50s Aviva Life insurance

Aviva’s over 50s life insurance plans range from just £7 per month to £50 per month, depending on the amount of coverage you choose. With Aviva, you can take out over 50s life protection between the ages of 50 and 80, and they provide you with coverage to last your lifetime. The cover ranges anywhere from £404 to £20,077, depending on your age and premium (which will remain the same throughout your lifetime). Providing your premiums are less than £100 per month, you can take out over 50s life protection in conjunction with other life insurance policies.

Aviva’s over 50s cover policy:

  • Premiums start from £7 per month.
  • Available for people between the ages of 50 and 80.
  • Cover lasts until death, with no limited term.
  • Cover ranges from £404 to £20,077.
  • No health checks.
  • Guaranteed acceptance.
  • Guaranteed premiums.
  • Cash lump sum guaranteed if you pass away after 1 year (or you pass away as a result of an accident).
  • Multiple plans.
  • Accident protection.

Free Parent Life Cover

When you take out a life insurance plan with Aviva, you’ll receive a year’s worth of parent life cover, for free. This cover is available for those between 18 and 66, with children under 4, and extends up to £15,000.

In order to be eligible for free parent life cover, you’ll have to have your name on the child’s birth certificate, the full adoption certificate, special guardianship order, or final residence order. You may also be rejected if you’ve had any cancer treatments in the past 12 months.

Providing you answer all questions honestly, you don’t move out of the UK, and your death isn’t a result of suicide or alcohol/drug abuse, then you’ll receive a lump sum payout if you pass away.

Aviva’s life insurance for parents:

  • Available for those between 18 and 66, with children under 4.
  • Offers £15,000 worth of cover.
  • Free.
  • 1 year’s worth of coverage.
  • Children are eligible at any age before their 4th birthday.
  • Only available when you take out a life insurance policy.

Aviva life insurance: conclusion

Aviva life insurance offers flexible term coverage with a range of benefits and additional services, including free parent life cover, and a stand alone critical illness cover which can be taken out without a life insurance policy. As one of the largest insurance providers in the country, you have the security of knowing you’re taking out a policy with a name you can trust, and Aviva’s range of policies mean that there’s likely to be an option to suit you - although they do lack flexibility.

If you’re a parent, Aviva’s critical illness cover may appeal to you in particular as it also insures your child for up to £25,000 worth of cover, or 50% of your policy (depending on which is less).

Aviva provides both decreasing and increasing term life insurance policies. While they don’t offer a specifically designed level term policy, if you want to keep both your cover and monthly premiums the same, you can customise your increasing term policy accordingly.

If you’re looking for a large well-known insurance provider with a lot of experience in the industry, then Aviva’s life insurance policies are worth looking into.