The Aviva Life Insurance options
This offers life cover over a specified term, which is typically linked to an outstanding debt that is also decreasing over time. A classic example is the standard repayment mortgage where your outstanding debt diminishes year-by-year.
While your premiums remain the same over the whole term, the amount the policy would pay out to clear your debt would reduce in line with the balance outstanding on the debt itself.
As your family’s debts and living expenses typically increase year by year, at least in line with inflation, the amount they might need to survive on today might be insufficient in say 10 years’ time.
This type of life policy has an increasing level of cover which increments each year in line with the consumer prices index. Your premiums will increase each year to reflect this.
Over 50s life insurance
Offering a lump sum whole-of-life cover, you decide how much cover you need (but these amounts will be in the lower £10,000-£15,000 region compared to traditional insurance plans).
Your premiums are calculated from this figure. Knowing that there will be a lump sum to help cover your funeral expenses, for example, or clear some of your debts, can provide welcome peace of mind.
Over 50 life insurance has guaranteed acceptance, even if you have been refused life insurance elsewhere, with no need for a medical declaration.
Critical Illness Cover
This is an option to add to the main life plans.
Again offering increasing and decreasing plan options, you are free to use the lump sum provided by this type of cover as you think best – to pay off a loan for example or to cover additional expenses which may arise from your illness. Your children are also covered by this policy option should they be diagnosed with a specified illness.
Critical illness cover only covers conditions specified within the policy.
This is an option to add to the main life plans
Having life insurance in Trust means that you give someone control of the sums insured in the event of your death – someone who is not a beneficiary as such.
This is perhaps best illustrated in situations where surviving children might be too young to handle the sum insured and will need the assistance of trustees until they reach adulthood.
In some situations, there may be tax advantages to this arrangement but specialist advice will be required on this aspect and your individual financial position would need to be analysed.
All Aviva’s policies of this type offer lump-sum payments. Please note that these are NOT savings products and they have no cash-in value at any time.