In 2009, Aviva became the first UK life insurer to offer free life cover to new parents, offering a term policy with a sum insured of £10,000. It has now redeveloped the plan, increasing the sum insured to £15,000 for both parents for each child. Policies are available up to the child’s fourth birthday and the policy lasts just one year and requires the parent(s) to register online at www.aviva.co.uk/free-parent-life-cover or phone 0800 404 6465 or contact their financial adviser. No payment is taken, nor does Aviva require any bank or credit/debit card details.
Aviva points out that a child loses a parent or sibling every 22 minutes in the UK. Despite that, research has long shown that too few parents have any or sufficient life cover to help their family if they die early. Although most parents will want more cover for their children, those with no cover would usually qualify for just £2,000 Bereavement Payment from the State if they die – not enough to pay for even half of the average burial costs today.
What They Say
Protection director Louise Colley said: “At Aviva we believe that every family deserves to understand the financial risks they face and take action so they have a financial cushion in place if the worst were to happen. We know sometimes financial protection gets left on the ‘to do’ list as family life gets in the way but you can’t underestimate the difference financial protection makes. I’m delighted that we are now able to strengthen our offer to reach even more families as this is a real catalyst to take action and protect what matters most.”
What We Say
Aviva has made two key changes to a very simple proposition. First it has increased the sum insured to £15,000, then it has extended cover to parents of all under fours. And it’s all free.
What’s the catch? Simply that by giving you ‘something for nothing’ Aviva hopes it will make parents think about how much cover they should really have, then actually do something about getting it. Fortunately, even since this concept started in 2009, insurers have made their underwriting hurdles generally easier to negotiate (even if there is still some way to go for many) and life cover remains one of the best bargains in the family budget, with increases in longevity rewarded by lower premiums over the years (even if more lives are now rated than was the case in the past).
Of course, £15,000 cover per child for just one year is not enough cover but it is a start and, for an adviser, it enables you to begin conversations with new parents or those with young children by ‘giving’ them a useful free head start.
We think this is a great initiative and are delighted that Aviva has not only kept it going but also increased its scope and value. It’s not perfect – but it’s a great thought starter and it’s free so use it!