Aegon starts income protection summer sale

It includes savings on premiums of up to 10 per cent on all 26-week deferred period rates and most 13-week deferred period rates - where the policyholder is paying premiums but not receiving a payout from the policy - for income protection.

Premiums are being cut by up to 15 per cent for the provider’s family income benefits range paid on death or terminal illness, while cuts of up to 5 per cent apply on the majority of family benefits paid on a critical illness, or earlier death.

The discounts will apply for the term of the policy.

Advisers can get these offers directly through Aegon’s online services, or via their preferred portal.

Protection director Stephen Crosbie said Aegon’s first quarter results showed protection sales up 18 per cent year-on-year.

“We then demonstrated our continued support for advisers and the protection market through several initiatives – the launch of our digital document service and the recent enhancements to our protection menu,” he explained.

“Our goal is to increase the number of families protected in the UK. With price being a key barrier to the purchase of protection for some people, we hope that this offer will take us a step closer to reaching the people in most need of protection.”

In January, Aegon marked its 15th year in the UK protection market with a sale, offering up to 10 per cent off premiums for level and indexing life protection with benefit amounts of £300,000 plus, gift inter vivos and family income benefits.

Protection Review marketing director Roger Edwards pointed out that many, if not all, retail brands use a discount approach to marketing their products.

He said: “With protection consumers have the wrong perception that it’s expensive, so a discount should be attractive.

“But unlike sofas and flights, protection is not an aspirational purchase. It’ll be interesting to see what customer and adviser engagement Aegon have planned to support the discount campaign.”

peter.walker@ft.com