Following a year long review after it acquired Friends Life in April 2015, Aviva has launched a new individual protection proposition which it says brings together the best of both organisations’ propositions.
The new products are called Life Insurance+, Life Insurance+ with CIC, Critical Illness+ and Income Protection+. Plans include Aviva’s ‘protection promise’, which provides free life cover during underwriting up to £500,000.
Life Insurance+ is available as level, decreasing or family income cover, with flexible options including waiver of premium, increasing cover, renewal option and conversion to a whole of life policy. Life change benefit, separation benefit and house purchase cover are also available subject to underwriting, at no extra cost.
Critical illness cover can be included that has options to upgrade the cover, upgrade children’s benefit, add Extra Care Cover and include cover for Total Permanent Disability.
Critical Illness+ is a three tier proposition. The core critical illness cover includes 36 full payment conditions, two additional critical illness conditions, (less advanced cancers of the breast and prostate), and six surgical treatments covered under an accelerated surgery benefit. Children’s benefit provides cover from 30 days old and includes all 38 conditions applicable to the covered adult life, as well as hospital benefit and children’s death benefit.
Customers can upgrade their cover to include a further 13 full payment conditions, 36 additional critical illness conditions, and four surgical treatments provided under an accelerated surgery benefit (which pays on ten surgical treatments). Upgraded children’s cover provides cover from birth and includes a further eight children’s critical illness conditions, 11 conditions covered under child extra care cover, (including a boosted payment of up to £50,000), advanced illness benefit and death benefit from 24 weeks gestation.
Extra Care Cover can be added alongside critical illness cover. This provides an additional £50,000 payment if the customer suffers a critical illness, upgraded critical illness or total permanent disability and is left with severe and permanent symptoms.
Income Protection+ offers benefit of up to £20,000 a month and underwriting on an own occupation basis.
The digital ALPS platform includes a simple user-friendly calculation to choose the main plan parameters. Cover includes a benefit guarantee and customers can choose an annual benefit increase to account for salary increases.
All Income Protection+ policies also provide access to a ‘Back to Work’ benefit, family carer benefit, hospital benefit and physio treatment. Trauma benefit and significant professional development are also available subject to underwriting.
Across the range, Aviva offers a raft of help, information and support mechanisms through Support Plus including:
* Second Opinion by Best Doctors.
* Bupa Anytime Healthline (nurse-led phone support).
* Care and Counselling Services (face-to-face or phone support for all the family).
Two additional benefits are also available:
* Global Treatment (second opinion and treatment abroad up to £1m pa per person). This benefit costs £4 a month.
* Fracture Cover (cash lump sum on a sliding scale up to £60K). This benefit costs £3 a month.
What They Say
Managing director of individual protection, Paul Brencher, said: “Combining the strengths of the Aviva and Friends Life protection products into a single, integrated proposition means that we can offer a range of solutions that will allow advisers to meet every customer’s needs and budget, backed up by the highest level of service and support.”
What We Say
"Revising all three main long term protection covers at the same time is both an opportunity and a threat for insurers. Aviva has been keen to not just incorporate all the best bits of the previous Aviva and Friends Life offerings but to do so in a coherent package that works for both customers and advisers and offers all the flexibility and breadth of cover required.
"The danger with that route is creating a rather rambling monster that offers too much choice and confusing messages. Aviva has largely avoided that - although the end result is still complex – and the ALPS platform should help explain the what’s and why’s to clients. The aviva-for-advisers.co.uk site is also helpful in setting out what’s available (although punching ‘Life Insurance+’ into the search engine of the main Aviva website a week after launch revealed no relevant results, which inquisitive clients could find confusing).
"Our review sets out only the basic details of this new range and our rating focuses on the life and CI option but, if you’re a fan of Aviva (who isn’t?) and the price is right, investing time to really learn the new products is probably already now ticked-off on your list of things to do.
"Overall, Aviva has not been too adventurous with these new products, but offers most of what you’d expect and a few pleasant surprises too. Yes, it adds up to a fairly complex overall package, but maybe that’s unavoidable?"