What you need to know about life insurance from Aviva
Our Life Insurance Plan
Most of us insure our cars, homes and even our phones – but what about helping to protect our loved ones? Life insurance provides a safety net for your family and loved ones if you die, helping them cope financially during an otherwise difficult time.
Our policy includes a terminal illness benefit. That means the policy will pay out if you’re diagnosed with a terminal illness within the policy term that meets our policy definition and aren’t expected to live for more than 12 months. Please note that this policy only pays out once.
Types of cover
Increasing cover Or Decreasing cover
Helps protect your cover against the effects of inflation, giving added protection for you and your loved ones.
- Amount paid out in a lump sum
- Helps protect against the future effects of inflation
- Your cover increases each year in line with any increase in the Consumer Prices Index (CPI)
- If your cover increases, your premium will increase at a higher percentage rate
Helps to pay off debt that's reducing over time, like a mortgage.
- Cover amount decreases each month broadly in line with a repayment loan using a fixed interest rate
- Premiums calculated when you take out the policy, and stay the same for the duration of the policy term
For extra protection, buy life insurance and critical illness cover at the same time
Life insurance and critical illness cover are both important and provide vital protection for different sets of circumstances.
You’ll still receive separate policies, meaning that you can make a claim on your critical illness policy without your life insurance policy being affected.
Plus, it’s entirely up to you how much cover you need for each, so you have flexibility to choose an amount that’s right for you.
Critical Illness Plan
Our Critical Illness Plan pays out a lump sum if you are diagnosed with a critical illness that meets our policy definition during the term of the policy and then survive for at least 10 days. We only cover the critical illnesses we define in our policy and no others. This policy doesn’t have a cash-in value and does not pay out on death. If you stop paying your premiums, you cover will end.
Life Insurance Plan
- Pays a lump sum if you die during the term of your policy
- Financial help if you die or have a terminal illness and are not expected to live longer than 12 months
- Cover if you’re in the process of buying a house
Critical Illness Plan
- Pays a lump sum if you survive for 10 days after diagnosis of a condition that meets our policy definition
- The money can be used in any way you like – to help pay a lump sum off your mortgage, enable you to stop working, or buy private medical care
- Some cover for your children included
Things to consider
How much cover do you need?
The amount of cover you need depends on your own personal circumstances. If you have loved ones, for instance, you need to consider how much money they’ll need to get by. And if you have a mortgage or any debts, you should consider how much is required to pay them off. Use our life insurance calculator to find out how much you might require.
How long would you like your cover to last?
The length of time you need your life insurance policy to cover depends on how much money you think you might need at different stages in your life. You might have a partner, children, or other loved ones who rely on you financially, or a mortgage to pay off.
Gift your life insurance policy to a chosen beneficiary/beneficiaries with an Aviva trust. You can choose who’ll receive the money from your life insurance policy whilst maintaining an element of control over it.
Life insurance – what to consider before you buy
For lots of us, life insurance is an important way of helping to protect the people we love so that they can maintain their lifestyle should you no longer be around.
So when looking to buy life insurance, just ask yourself three simple questions.
• What do I need to protect?
You may have a spouse, or children. And a mortgage, or other outstanding loans. Or a combination of all of these. There are different types of life insurance depending upon your needs, so it’s important you get all the facts before you get a quote.
• How much cover do I need?
If you have a mortgage, how much is outstanding? And how much would your family need to maintain their lifestyle, without you there to provide for them.
Take into account your income and outgoings, such as your mortgage payments and utility bills. Think about childcare costs and perhaps the odd holiday. Also what your family might want in the future, possibly university fees or even a deposit for a first home. The amount of cover you need is up to you but you’ll be surprised how it all adds up.
And finally question 3:
• How long do I need life cover for?
Think about how long’s left on your mortgage, how long your children will be financially dependent on you, and how old your partner will be when they’re likely to retire? This will help you decide how long you want your life cover to last.
That’s it! All pretty simple stuff – what do I need to protect? How much life cover do I need? And how long do I need it for?
And now you’re ready to find out more, which is easy too – just search for ‘Aviva life insurance’.
Life insurance FAQs
Why do I need life insurance?
Not everybody needs life insurance.
Our Life Insurance Plan pays out a cash lump sum if you die during the policy term. There is no cash value at any time. This can help provide financial security and can be used to help your family when you’re no longer around.
What do I need to get a quote?
Before you get a quote you need to think about what you’d like to cover, how much money your loved ones would need if you die and how long you want your life cover to last.
When applying for a policy we’ll provide you with a price based on your age, smoking status and the cover you would like. We’ll then ask you some questions about your health and lifestyle to work out whether we can go ahead with that initial price. Sometimes we’ll need to contact your doctor to get more information and make sure we can give you a tailored price based on your specific circumstances.
When you complete your application, it’s important to make sure you answer the questions honestly and accurately. Any incorrect information could mean we won’t be able to pay the claim amount in full or at all in the future.
How does life insurance work?
In return for regular payments, Aviva will pay your chosen cover amount if you die during the policy term.
Alternatively, if you’re diagnosed with a terminal illness during the policy term and are not expected to live longer than 12 months we can pay the cover amount out early. Please note that we will only pay the cover amount out once.
The cover amount can be used to help provide some financial protection for your loved ones when you die or help pay off a mortgage so the family home doesn’t need to be sold.
You can select how long the policy runs for when you first take it out and you will only be covered during the policy term. If you die outside of this term, the policy won’t pay out and there is no cash in value at any time.
Will I need to provide my medical history or have a medical exam before taking out a policy?
We don’t routinely ask applicants to take a medical exam or request a medical history from their doctor.
Our experience and expertise mean that we can often make an immediate decision about your cover based on your answers to our health and lifestyle questions.
If we’re not able to make an immediate decision we may need to contact your doctor to get the information we need (to ensure that we offer the fairest possible terms). Whilst this is happening we’ll provide you with free life cover up to £500,000 for up to 90 days.
Medical exams are usually only required for applications for very large amounts of life insurance – the actual limits are available on request.
Can I change my policy if circumstances change?
Our lives change so we’ve made sure our policies can too – if your circumstances change then our policies are flexible. Sometimes this will mean you need to take out a new policy and/or we may need to ask you some additional health-related questions.
What happens if I outlive my policy?
Life insurance is designed to cover you for your chosen term. If you reach the end of that period then your policy will end and you won’t get any money back, but you will have been protected for the entire period.
Can I take out cover if I'm already ill?
You may be able to, but you’ll need to tell us the details if we ask about it in your application. Being ill doesn’t always mean we’ll turn down your application, but it might affect how much we charge you each month.
If you’re ill when you apply and don’t tell us, it might mean that we decline your claim in the future or reduce the amount that we will pay. We don’t want to turn down claims – please answer our questions honestly and accurately.
Will my pay-out be tax free?
Life insurance payments on death are currently free of personal liability to income tax and capital gains tax.
However, please remember that unless you place your policy into a suitable trust, any payment due may be liable for inheritance tax if your taxable estate exceeds certain levels.
We recommend getting independent legal and financial advice if you're concerned about inheritance tax being payable when you die.
If you can’t find the information you’re looking for, more FAQs are available here.
Other types of cover
Critical Illness Plan
Our Critical Illness Plan pays out if you are diagnosed with a critical illness that meets our policy definition during the term of the policy and survive for at least 10 days. We only cover the critical illnesses we define in our policy and no others. There is no cash in value and it won’t pay out if you die.
Free Parent Life Cover
If you’re the parent of a child under the age of four, we’ll give you £15,000 free life insurance cover for one year to help you on your way to protecting your family.
Over 50s Life Insurance
If you’re aged 50 to 80, our Guaranteed Lifelong Protection can be an affordable way to leave a guaranteed lump sum to your loved ones when you die.
We are here to help
Links and product literature
- Life Insurance Plan policy summary
- Life Insurance Plan policy conditions
- Key facts about our insurance services
Make a claim
Tell us what kind of claim you want to make and we’ll help you through each and every step.
Need to speak to us?
If you have any questions or queries, or you’d just like to know more about our Life Insurance Plan, get in touch with us and we’ll be happy to help.
Call us on 0800 068 5549
Monday to Friday 8.00am – 8.00pm
Saturday 9.00am – 5.00pm
Sunday 10.00am – 4.00pm
For our joint protection, telephone calls may be recorded and/or monitored.
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