Aviva Whole of Life Insurance+
Aviva’s new Whole of Life Insurance+ is designed for the advised market. The fully underwritten plan is available from age 18 to 85 at outset. Aviva says the plan is particularly suited to high value clients looking to help cover their Inheritance Tax liability or to leave a legacy.
The plan’s main benefits include:
• Being able to pre-qualify client applications before financial and medical checks.
• Easily accessible trust and taxation technical expertise for high-value clients throughout the application process.
• A dedicated point of contact to chase GP medical exams and to arrange underwriting terms.
The plan also includes a second opinion service from Best Doctors, access to Bupa’s Anytime HealthLine plus counselling and care support.
The plan is available on single or joint lives (either first or second death). Premiums are guaranteed and there is no surrender value at any time. Waiver of premium can be added (this will pay premiums up to age 71) and an increasing benefit option is available, with the sum insured going up each year in line with the Retail Prices Index (up to 10% a year).
Cover can be changed, underwriting free, on a significant life change or if IHT legislation changes. A separation benefit is included, which means joint life policies can be spilt if the couple separate. Cover can be reduced at any time.
Comment: This is a very professional whole life plan, with good customer and adviser help and benefits. The latter is important, as underwriting larger sums insured for older people can be very time consuming and frustrating, while sorting out the legal aspects can be daunting to even experienced advisers.
As with similar plans, there is no surrender value at any time, which makes for lighter regulation but does penalise those who have to stop their policy later for any reason. However, it also means lower premiums too.
Overall, Aviva’s plan is sound, with good adviser help and customer benefits, the powerful Aviva brand and competitive premiums too.
Plus points: Aviva’s brand is strong and reassuring; Simple whole life cover; With good customer benefits; And adviser help too.
Not so plus points: No cash value at any time; Underwriting large sums insured for older clients can still take time and be frustrating; The RPI may not exist for much longer so an alternative inflation link may become necessary (this is an issue for any insurer that uses RPI linking) and an earnings rather than prices index may be a better option for customers too.
Website: http://www.aviva.co.uk.
Rating (max 10): Innovation: 8.5. Overall: 8.5. Gold
Tags: WL; Aviva