Aviva Over 50 Life Insurance Review – The Guaranteed Lifelong Protection Plan
May 20, 2014
For my fourth Over 50 Life Insurance Review, I am focusing on the Guaranteed Lifelong Protection Plan from Aviva, the UKs largest insurance group and also the company behind some rather funny adverts, courtesy of the infamous Paul Whitehouse.
Who are Aviva?
Aviva is the UK’s largest insurer providing life insurance, general insurance and asset management services to over 14 million customers; around 34 million customers worldwide.
Formed by the merger of CGU (formally Commercial Union and General Accident) and Norwich Union in 2000, the Aviva brand was launched in 2002 however their roots go way back with over 300 years of heritage. In a nutshell they are well established and rather large!
How does the Aviva Lifelong Protection Plan work?
The Aviva Guaranteed Lifelong Protection Plan is a simple whole of life insurance plan that pays a fixed cash sum when you die. You are guaranteed to be accepted with no health or lifestyle questions as long as you live in the UK and are between the ages of 50 and 80.
You are covered for the full cash sum after an initial period of 12 months however if you were to die during this time, the premiums you have paid would be fully refunded.
You are covered immediately if you die as a result of an accident and the cash sum paid out would be doubled if death occurs after the initial 12 month period.
Is there a Funeral Benefit Option?
Although Aviva don’t offer a funeral benefit option with their over 50 life insurance, they are the name behind the Tesco Over 50 Life Insurance Plan and the Post Office Over 50 Plan, both of which do include this free funeral addition.
The Tesco and Post Office funeral benefit options are both in association with The Co-operative Funeralcare who will contribute £250 towards your funeral costs if you agree for your cash sum to be paid directly to them when the time comes
What are the Payment options?
Aviva offer life cover from £7 a month, increasing in increments of £1 to a maximum cover level of £50, with monthly premiums payable until you die or your 90th birthday.
What do I need to consider?
Here are some things you need to consider about the Aviva Lifelong Protect Plan before making your decision on the best over 50 life insurance for you:
If you die within the first 12 months you will not be covered for the full cash sum, unless death was as a result of an accident. Instead the premiums you have paid would be fully refunded.
If you stop making your monthly payments when due or cancel your plan, the life cover would stop and you would not receive a refund.
Depending on how long you live, there is a chance you could pay in more than the cash sum paid out.
As the cash sum is usually paid to the deceased’s estate, it may be subject to inheritance tax.
As the cash sum is fixed, inflation will reduce its value over time.
What makes the Aviva Over 50 life insurance plan different?
To summarise, here are the main features of the Aviva Lifelong Protection Plan:
• You are covered for the full cash sum after an initial period of just 12 months
• You are immediately covered if death is as a result of an accident
• If you die as a result of an accident after the initial 12 month period, the cash sum paid out would be doubled
• Payments stop when you reach 90 but cover continues
So what now?
To see how Aviva compares on price to other leading providers, why not take a look at our over 50 life insurance comparison table to see how much cover you could get. Alternatively to learn more about other over 50 life cover plans, click here.