If you’ve read any of my other articles on Life Insurance, you’ll have a pretty good idea of who provides it, and why it’s a good idea to have it.
Especially if you are the main earner in your household and have children who are financially dependent on you!
But with so many insurers out there it can be difficult to determine which insurer can provide the best Life Insurance policy for YOU.
In this article I’m going to be having a more in-depth look at the policies of 2 insurers that I think offer some of the best Life Insurance cover around.
The statistical information within this article is factually correct – whether or not they offer the best is simply my professional opinion.
Remember that before you take out any kind of insurance policy, I always recommend you speak to an independent financial advisor.
If you have a family who would struggle to pay the bills and mortgage in the event that you were to die, then Life Insurance is, in my opinion, essential.
Having Life Insurance means that your spouse, children, and loved ones won’t be left with the extra stress of being faced with debts and bills that they are unable to cover without your income.
There are plenty of insurers out there offering Life Insurance policies, but there are two companies that stand out to me as offering the most comprehensive coverage; Legal & General, and Aviva.
Let’s take a look at why I think these insurance giants stand out above all the rest:
As with other Life Insurance policies you can choose the amount of cover you need and how long you need it for, with that being fixed unless you change your policy.
You can take a policy out in just your name, or under joint names, and can pay your premiums monthly or annually.
Both of the companies I’ve mentioned offer Decreasing Life Insurance, which is designed to help protect a repayment mortgage.
And Finally, both offer ‘Terminal Illness’ cover for free, as well as ‘Waiver of Premium’, ‘Total Permanent Disability’ and ‘Guaranteed Insurability’ as extra’s / inclusions.
So, I wanted to focus on some of their more important aspects.
Legal & General Life Insurance
Legal & General have been around for nearly 200 years and are the UK’s largest provider of Life Insurance products.
The company was founded in 1836 by Sergeant John Adams and 5 other lawyers in a coffee shop in Chancery Lane, and today continues to be one of the biggest around.
But, does being one of the biggest also mean being the best?
Well, they do offer one of the best Life Insurance policies around….
How Good Is Legal & General’s Life Insurance Cover?
Legal & General offers 4 different options when it comes to Life Insurance:
Term Life Insurance is a Life Insurance policy that is fixed for a set period of time (a ‘term’) that covers you against death and terminal illness up until the last day of that term.
Money is paid to your family (as an example) as a tax-free lump sum if you die
Basically this type of Life Insurance would run and run until you pass away, there is no expiry date…well technically it expires when you ‘expire’.
Naturally for this type of insurance because it’s guaranteed to pay out, you do have to pay more for it
3. What Is Family Income Benefit?
This type of Life Insurance policy covers you for exactly the same scenarios as their Term Insurance but pays out to your family in monthly instalments instead.
This can be a useful option when it comes to budgeting
4. What Is Rental Life Insurance?
Like Family Income Benefit, Rental Life Insurance pays out to your family in monthly installments.
This is a specifically rental-based option, which allows you to increase the benefit amount if the rent increases.
What Is Legal & General’s Defaqto Rating?
Legal & General are an award winning insurer with a 5 star Defaqto rating.
In 2018 Legal & General won Provider of the Year at the Financial Times PIPA Awards, as well as Insurance Firm of the Year.
In fact, they’ve been consistently winning these titles since 2015, showing how consistent their results are within the industry.
But what else do Legal & General have to offer customers? Let’s take a look at those all important extras.
What Are Legal & General’s Life Insurance Extras?
1. Accidental Death Benefit
Accidental Death Benefit is given whilst your application is being processed, giving you peace of mind that you are covered in case of accidental death, even if you pass away BEFORE you’ve even been accepted!
If you are taking out life cover to cover a mortgage, Legal & General offer free life cover whilst your application is being processed
3. Second Medical Opinion
If you make a claim for terminal or Critical Illness, Legal & General’s Second Medical Opinion option gives you access to a database of consultant specialists in the UK to support your claim
4. Nurse support
Legal & General Life Insurance offers you a suite of Nurse Support Services provided by RedArc Assured Limited, and is included as standard
All very well worthwhile extras to have, but how do Legal & General measure up against others when it comes to their claims statistics?
What Are Legal & General’s Life Insurance Payout Percentages?
97% of all Life Insurance claims were paid out by Legal & General, so they’re certainly holding their own!
But what about the other insurer in my top three – Aviva?
Aviva Life Insurance
Aviva is a British insurance company with headquarters in London, and 33 million customers across 16 countries.
It is the largest general insurer in the UK, and has a heritage dating back over 300 years.
The company was created in 2000 when Norwich Union (est 1797), and CGU (a merger of Commercial Union and General Accident) joined forces, with the name ‘Aviva’ being adopted in 2002.
How Good Is Aviva’s Life Insurance Cover?
Aviva offer 4 different types of Life Insurance cover:
1. Term Insurance
Term Life Insurance is a policy that is fixed for a set period of time (a ‘term’) that covers you against death and terminal illness up until the last day of that term.
Money is paid to your family (as an example) as a tax-free lump sum if you die
2. Whole of Life Insurance
Basically, Whole Of Life Insurance runs and runs until you pass away, there is no expiry date…well technically it expires when you ‘expire’.
Naturally for this type of insurance because it’s guaranteed to pay out, you do have to pay more for it.
But then you’d already figured that out.
This type of policy covers you for exactly the same scenarios as their Term Insurance, but pays out to your family in monthly instalments instead.
This can be a useful option when it comes to budgeting
4. Simple Life Insurance
Simple Life Insurance is a type of policy requires you to answer fewer questions to get covered, and you can complete an online application that will give you an instant answer as to whether or not you can be insured.
Again, this is the ideal Life Insurance policy for anyone who is looking for a cheap and cheerful policy without all the bells and whistles.
What Is Aviva’s Defaqto Rating?
5 stars of course!
Aviva were awarded General Insurer of the Year by the Insurance Times in 2019, as well as Trailblazing Company of the Year and Company of the Year at the We Are The City Awards.
So, just as impressive as their competitors.
In order to make up your mind I guess you want to hear about those extras that they offer their customers; benefits such as:
What Are Aviva’s Life Insurance Extras?
1. Protection Promise
Aviva’s Protection Promise is applied whilst your application is being processed, giving you up to 90 days of FREE cover meaning even if you pass away BEFORE you’ve even been accepted Aviva will still pay out!
2. Free Life Cover When Buying a House
If you are taking out Life Insurance to cover a mortgage, Aviva offer free life cover whilst your application is being processed to ensure your mortgage is still paid off if you die before you’ve even been accepted.
3. Fracture Cover
Fracture Cover is Pretty self-explanatory.
You can pay £4 extra a month on your policy and if you fracture a bone, you’ll get a pay-out.
The size of the pay-out will depend on the type of fracture (there are 18 specified types – who knew!?). T
Aviva’s fracture cover does exclude some hobbies and occupations, so call us if you do anything risky!
4. Global Treatment
For just £4 extra a month, this benefit will cover you and your child for the cost of treatment and travel to the best doctors and medical facilities around the world (outside the UK).
The cover will pay out up to £1m per person during a 12 month period and will cover as many treatments as you need up to the amount of £2m, which includes medical, travel, accommodation expenses and the costs of any medication which cannot be bought through the NHS.
This add-on also allows you to bring a companion with you (your partner). They will also have all their travel and accommodation costs paid for.
All sounds great doesn’t it? But compared to Legal & General, how do they fare in the claims statistics stakes?
Pretty darn good…
What Are Aviva’s Life Insurance Payout Statistics
Aviva pay out on a whopping 98.6% of Life Insurance claims, with that small percentage not paid being down to non-disclosure – just like Legal & General.
And so there you have it; who I believe to be the Life Insurance providers offering the best policies around.
Of course there are other insurers out there, and I would always recommend that whatever type of policy you want to purchase, you should seek the advice of a financial advisor first.
If you have any insurance related questions, Life Insurance cover or otherwise, please do get in touch. Our advice is with no obligation, and one of our qualified advisors would be more than happy to help.
