Life insurance FAQs
Choosing life insurance is an important decision – you want to be well informed so that you can buy the right cover, but you also don’t want to spend ages on research and filling out forms.
That’s why we’ve made our application process quick and simple and our FAQ section short and thorough. Read on to discover all the things you need to know about buying life insurance.
We've compiled a range of information to help you decide if Life Insurance from Aviva is right for you. The insurance is provided on a non-advised basis and so we will not make a recommendation about the suitability of this plan for your demands and needs.
Frequently asked questions
What is the difference between term life insurance and whole life insurance?
You can read a detailed explanation of each type here, but the short version is that term life insurance pays out if the holder dies within a fixed term (such as 15 to 20 years) whereas whole life insurance pays out whenever you die. As payment is guaranteed, whole life insurance is generally more expensive.
What is investment-type life insurance?
Investment-type life insurance policies are slightly different, as they depend on how well the investments in the insurance fund have performed over time and are therefore inherently more risky than straightforward life insurance policies.
It’s important to get financial advice before taking out this type of policy.
Are there different kinds of term life insurance?
Yes. Term life insurance cover comes in a variety of forms, but essentially you’re insured for a specific period, such as 15 or 20 years. The policy pays out a lump sum if you die within the term, so you’ll get nothing if you live for longer.
The different types of term life insurance and their features include the following but companies may not sell them all:
- Level term: The premium and level of life insurance cover stays the same throughout the term.
- Decreasing term: The level of life cover reduces over time. This type of life insurance policy is often taken out to cover mortgages or other loans where the amount owed decreases year on year. The aim is that if you die the outstanding loan can be paid off.
- Family income benefit: This type of term life insurance pays a regular income rather than a lump sum.
- Increasing term: The cover and premium rise over the years.
You may also see decreasing term insurance called mortgage term insurance or mortgage protection life cover or insurance.
Policies can be taken out for a single life or couples can take one out together. If you do take out a joint policy, it will usually only pay on the first death during the term.
What is the difference between life insurance and life assurance?
The terms 'insurance' and 'assurance' are sometimes confused – life insurance is a more popular term. The term 'assurance' is the provision of cover for an event that will definitely happen but insurance is cover for an event that might happen.
Why is life insurance so important?
Generally, people take out life insurance because they wish to provide cover in the event of their death for their loved ones – this could be to pay off a mortgage or perhaps they are the sole breadwinner and wish to provide a fixed income or lump sum for their family and dependents.
How much does life insurance pay out?
That’s up to you. Barclays Life Insurance from Aviva can provide life cover from £5,000 to £500,000. You decide how much you want to get cover for and what type of life insurance you would like.
Life Insurance from Aviva
- 16% discount 1 when you buy online
- 3 months cashback 2
- Get a quick quote in just 2 minutes 3
- Monthly premiums from £5
1. Please note that the online discount is subject to change and we reserve the right to amend the level of discount without notice.
2. You must purchase a Life Insurance from Aviva policy between 21 April and 1 June 2012. To be eligible for the cashback, you must have paid the first 3 months’ premiums. We’ll send you a cheque for the sum of your first 3 months’ premiums within 30 days of receiving your 3rd monthly premium, provided your policy is still open on this date. We may withdraw this offer at any time and without notice. Purchases made in branch, online or over the phone are all eligible for this offer.
3. By choosing to get a quick quote, you will be transferred to Aviva in order for them to provide you with a quote. At this stage no information will be retained or passed between Aviva and Barclays. Only if you proceed to purchase a policy, the information that you provide during this process will be used by the Barclays Group, its associated companies and agents for the purposes of insurance administration, for research and analysis, to prevent and detect fraud money laundering and other crime, and to meet our obligations to any relevant regulatory authority. We will store your information on Barclays Group systems, and it will be kept for as long as the law and legitimate business purposes allow. The information may also be transferred to countries outside of the EEA, however where this is necessary we will ensure that the same levels of protection apply to the information.