Simple Life Insurance introduced to sit alongside more comprehensive Life Insurance+ policy
To give advisers a cheaper and quicker option for clients, Aviva's new policy offers simple banded life cover based on the client's age alongside simplified policy documentation.
Designed to appeal to different groups of advisers and their clients, the insurer said it has ‘clear' pre-application eligibility questions, an underwriting guide, instant decisions and no medical evidence is required.
The term of the policy is between one and 40 years and premium starts from £3.50 - for Life Insurance+ it's from £5.
The pre-eligibility application questions for advisers will ascertain whether the product is suitable for their client, otherwise - for example, if a customer has a history of more complex medical conditions - Life Insurance+ could be offered as more appropriate option, Aviva said.
Simple Life Insurance also includes a basic range of support services, such as funeral payments, grief counselling, estate administration through MyDigiExecutor and a bereavement guide, as well as gym discounts.
Aviva said the policy has been created to appeal to clients who might have previously rejected taking out life insurance, but recognise some core is needed.
Mark Cracknell, head of protection distribution at Aviva, said: "Simple Life Insurance extends our life insurance proposition to customers whatever their budget or circumstances.
"While our menu proposition will continue to offer an appropriate solution for many advisers and their clients, Simple Life Insurance is an important part of ensuring that we have a range of options to help more people put protection in place. We know that 66% of UK adults do not have any form of valuable life insurance. We believe this policy will encourage customers who might have previously walked away from taking out life insurance based on cost or complexity."
According to Mintel's ‘Term Assurance' report, 45% of people did not have life insurance because they said they can't afford it, 25% had other financial priorities and 19% had been putting off. Meanwhile, 55% of respondents said simple, low-cost cover would most persuade them to take out some cover.
According to Aviva, the policy is available on all major adviser protection portals from Monday.
The insurer has also introduced an interactive protection ‘shield' sales aid for advisers.
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