The changes will allow employees to take the policy with them if they move jobs without the need to repeat the underwriting process.
Aegon has also revamped the layout of its trust deed and applications for the policy can now be made online .
The changes follow a series of workshops held by the provider for advisers in an attempt to attract new protection business in the auto-enrolment world.
John Wilkinson, protection director for Aegon UK, said the changes to the life policy make it suitable for all types of business. He added: “With the portability feature, customers can take their life policy with them if they move company. Should the new employer not want to take the policy on, it can simply be converted to an ordinary life policy with no direct link to the employer.”
Scottish Widows’ UK Protection Report 2013, which was published last week, showed that only 37 per cent of employees had life insurance.
The statistics for the take-up of critical illness and income protection were even lower, at 9 per cent and 5 per cent respectively.
Two weeks ago PruProtect launched its Vitality Optimiser scheme which offers discounts on premiums, cash back and incentives such as free cinema tickets if policyholders commit to improving their health.
The provider’s serious illness cover now promises to pay out on diagnosis of all heart attacks and strokes, regardless of severity.
Peter Lurie, managing director of Hertfordshire-based Proactive Medical & Life, said: “There are a number of factors that make the PruProtect product completely unique. At least one insurer is giving us something to really sell and something that is meaningful to the client in every way possible.”