CIExpert has analysed the launch of Aviva's business protection policies and described its Relevant Life plan with integrated critical illness cover as a ‘breakthrough' for the protection market.
Until today Relevant Life plans could only provide life assurance protection. Aviva's initiative will surely shake up the market and introduce new opportunities for advisers who are looking for tax-efficient solutions.
No doubt other providers will be looking to bring out their own versions but until then Aviva has a monopoly.
Relevant Life plans offer tax relief to employers effecting insurance on one or more employees and is a tax-efficient means of obtaining insurance, particularly for directors.
To meet legislative requirements the plan does not include children's cover however it does include access to the respected Best Doctors service.
Details
- The plan is identical to the existing Aviva personal cover plan albeit without any children's cover.
- The plan covers 43 100% payment conditions and a further 11 additional payment conditions as well as terminal illness cover.
- The plan can be taken out for a minimum 1 year period and can run until age 75, or age 72 if TPD is included.
Claims
- Historically, Aviva has evidenced a high quality claims paying record. During 2014, the latest advised year,
- Aviva paid 2,095 claims, 93.2% of those submitted, higher than the industry average of 92.0%.
Quality of claims wordings
Aviva shows up well on the CIExpert comparison tables and has historically sought to balance above- average condition wordings with a lower than average premiums.
CIExpert verdict:
Alan Lakey, director of CIExpert said: "As an industry we continually cry out for innovation and amongst the glut of annual changes very few insurers prove to be truly inventive.
"Relevant Life with critical illness is a breakthrough. Previously, a number of insurers had investigated the potential for such a plan but had been unable to navigate the onerous requirements of legislation. Aviva's legal advisers have succeeded where others failed and this plan is capable of creating a whole new target audience for critical illness."
Further reading
