Aviva life insurance review
History of company
Aviva’s history can be traced all the way back to 1696 but, in terms of modern history, the company as we now know it was formed in the year 2000 with the merger of the insurance companies Norwich Union and CGU plc).
Following the merger, the company kept the Norwich Union name for their British operations.
Norwich Union continued to be used for all British operations until June 2009, when it became formally known as Aviva.
‘Aviva’ was chosen as the brand name as it is short and memorable, and is a made-up word derived from ‘viva’ – the Latin for ‘alive’.
Aviva’s main areas of operations now are the general and life insurance markets as well as other financial products like investments and long-term savings.
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Aviva life insurance products
As a major player in the UK life insurance market, Aviva offers a full range of life insurance products to consumers,
- Increasing term cover
- Decreasing term cover
- Over 50's life insurance
- Critical illness cover
Increasing term life insurance
Term life insurance is a form of cover that lasts for a set amount of time - rather than 'whole of life' cover which will last until you die.
Term life insurance offers cheaper premiums, as there is an end date for the cover so the policy is not guaranteed to pay out as a whole life insurance policy is.
Term life insurance is usually used to cover a large financial commitment such as a mortgage - so you can set the policy to last as long as your mortgage payments to make sure your family won't have to sell the house if they can't afford the mortgage if you die.
Aviva offers an increasing term life insurance policy which increases the level of cover over time, so if you wanted the policy to cover household bills and kids University fees that may go up with inflation, this offers that flexibility.
Decreasing term life insurance
Aviva also offers a decreasing term life insurance policy, which as you may have guessed, decreases the level of cover over time.
This can be useful if you want life insurance to cover a mortgage, as the more you pay off a mortgage the less the total amount you owe is.
The flexibility offered by a decreasing term policy means the total payout can decrease in line with your total mortgage liability - and will cost less in monthly premiums as the years go by.
Learn more: Term life insurance
Over 50's life insurance
Life insurance tends to be cheaper the younger you buy it, so it can often be difficult for those over 50 to not only find a good deal but to be accepted in the first place.
Aviva's over 50's life insurance offering has guaranteed acceptance, even if you have been refused life insurance elsewhere, with no need for a medical declaration.
Critical illness cover
An alternative to life insurance, critical illness cover provides protection if you were to fall ill and no longer be able to work and earn.
Aviva also offer increasing and decreasing options for critical illness cover, which can pay out a lump sum up to £1 million.
Learn more: Critical illness cover
How much does Aviva life insurance cost?
As with all life insurers, the cost of Aviva's life insurance policies depends on a host of individual factors.
These include your age, your health status, your occupation, the level of cover you want and so on.
So, if you are a 50-year-old smoker who works on an oil rig you will pay more per month than a 30-year-old school teacher.
On general terms, life insurance with Aviva rarely costs more than around £20 per month - and can be as little as £8 per month depending on your circumstances. This is only a general estimate though, and you may be quoted more.