Direct Life & Pension Services has secured a contract with AA Insurance that will see the insurer offer term life and reducing term life policies.
The move is a first for AA Insurance, which is one of the biggest providers of motor and home insurance in the UK. From 1 October, AA Insurance will move into the life insurance sector using Direct Life's panel of life insurers to offer quotes via its website. All policies will be AA branded and cover will be offered with waiver of premium.
"We decided to enter the life market because it is a logical extension to our car and home insurance. Term insurance represents an enormous opportunity for us. Moving into the life sector with an offer that customers can relate to and trust was an obvious step forward," said Kevin Sinclair, managing director of AA Insurance.
Commenting on the deal, Richard Verdin, sales and marketing manager at Direct Life & Pension Services, said: "People are increasingly turning to brands they know and trust for a wide range of financial products and that certainly applies to the AA."
AA Insurance expects to launch online critical illness cover later in the year, with other products likely to follow thereafter.
