Quick guides

Whichever type of life insurance cover you have, in the event of a claim a lump sum will be paid.

Your loved ones could receive a cash sum

If you weren't there for your family, could they afford to keep up with the mortgage repayments, alongside household bills and other day to day living expenses? Having the right life cover would mean that if you were to die during the term of the plan, your family could receive a cash lump sum to help ease the strain and help them maintain their standard of living.

This could make all the difference in helping them to manage financially without your income, should the worst happen to you.

If you want life cover for a fixed number of years, for example until your children become financially independent, you should consider Level Life Insurance. Or, for cover that lasts for the rest of your life, you might think about our whole of life insurance or over 50's life insurance.

Your mortgage or loan could be paid off

If you have a mortgage, your lender will expect you to have some form of life insurance to cover any outstanding balance. If you were to die before the end of the life insurance plan term, your policy could be used to help pay off the outstanding mortgage balance. Financial support certainly can’t compensate for the loss of a loved one, but it could help ensure they don’t have to worry about financial commitments at this difficult time.

If you have a repayment mortgage or any other loan that reduces as you make your monthly repayments, you should think about choosing Decreasing Life Insurance. Or, if you have an interest-only mortgage, you should consider Level Life Insurance.

You can put your plan in trust

Putting your life insurance plan in trust means that this asset is removed from your estate and put in the name(s) of your trustee(s). There are two advantages to doing this. Firstly, your trustee(s) could receive any pay-out quickly and easily. And secondly, under current tax rules, if placed in a suitable trust it could help protect the pay-out from inheritance tax, meaning that any pay-outs made go to the person or people you intended rather than the taxman.

Pay-out for terminal illness

Terminal Illness Benefit is included with your Aviva Level or Decreasing Life Insurance plan. This means we'll pay you the sum insured if you're diagnosed with a terminal illness and are not expected to live more than 12 months (assuming your plan has at least 18 months to run). If we do pay out after you make a claim for terminal illness, your plan will end.

Most of our life insurance plans don't have any cash-in value at any time. The only exception is a Guaranteed Whole of Life plan, where there may be a small cash-in value if you choose to pay either by a single premium or for a limited premium term. However, it should be noted that this cash in value will be less than you've paid in.

WC05074 06/2011