Aviva has added Simple Life Insurance as a ‘no frills’ alternative to its Life Insurance+ policy.
The term insurance plan is available to customers 18-59 at outset, and can run to age 70, and has a minimum term of one year. It is available with level or decreasing cover (using an interest rate between 4% and 15%, chosen at outset) making it ideal for covering most repayment mortgages. Premiums are guaranteed throughout the term and start at £3.50 a month. Terminal illness cover (where death is expected within 12 months) is automatically included.
The streamlined online application process allows customers to go on risk in around ten minutes. Underwriting decisions are instant as is getting online policy details too. An online or paper trust is available.
Advisers get a useful two page underwriting guide which includes six questions to determine if the customer is eligible to apply for cover. Maximum cover is from £750K (age 18-39) down to £200K (55-59). Suicide is excluded in the first 12 months.
The plan also includes:
• Estate administration through MyDigiExecutor.
• Advanced funeral payments.
• A bereavement guide.
• Grief counselling for children.
• Get Active Gym discounts.
Comment: By offering this new plan alongside its existing Life Insurance + policy, Aviva is giving customers (and advisers) a choice of cover and price options. The insurer has gone to some lengths to simplify where possible and, while this means cutting out some benefits, some extremely valuable ones are included.
Plus points: Simple term cover with a good support package; Fast to get on risk; Some valuable help insurance benefits included; Trust service available too.
Not so plus points: More cover and cheaper cover could be available elsewhere; Limited age range; More additional benefits available on other products.
Rating (max 10): Overall: 8. Gold
Tags: Term; Aviva
I Mark: No