Aviva is a long-established insurer, but with the introduction of its Simple Life policy it has proved it is not yet beyond learning new tricks.
The offering is aimed mostly at budget-conscious and time-poor clients who would benefit from life insurance but do not necessarily have the time or funds to opt for Aviva’s ‘full’ policy, known as Life Insurance+.
It is designed to complement Life Insurance+ by expanding the pool of clients able to apply for life cover.
This is perhaps best exemplified in the starting premiums for Aviva Simple Life: £3.50 a month depending on age, state of health and the sum being applied for, compared with £5 a month for Life Insurance+.
Simple Life has a streamlined application process involving far fewer medical questions.
The decision on whether an individual is able to get cover is an instant yes/no based on these fewer questions, whereas for any other full life insurance policy the decision could take time due to the need to collect further medical evidence depending on disclosures made during the application.
Again this is to be welcomed, especially for time-poor clients who may otherwise walk away from a more convoluted underwriting process.
That said, it does mean that Simple Life is not particularly suitable for those with a more complicated medical history, as they are unlikely to be able to get cover without further examination of their circumstances.
However, Aviva has made some provisions to factor in minimal loading or even standard terms for those with more common, minor conditions, such as high blood pressure without complications, and minor mental health.
Despite the policy being at the budget end of the scale, Aviva still offers benefits alongside the policy.
Admittedly, the individual would not get the full suite of benefits they would receive with Life Insurance+, but given the nature of Simple Life, it is incredibly positive to see added value services at all.
Ultimately, there are clients who will be well served by Simple Life, as well as those who would be better off choosing a full life insurance offering. This might be because they need a higher amount of cover, or they have a wider medical history.
Which is best for clients will depend on their circumstances, but for healthy individuals needing a modest amount of life insurance and seeking quick underwriting decisions, Simple Life is certainly a good option.
Rob Harvey is head of protection advice at Drewberry
