Aviva launches Living Costs Protection

Aviva has launched simplified income protection to help customers cover their monthly outgoings, such as mortgage or rent and bills, if they cannot work due to illness or injury.

Living Costs Protection is a long-term insurance contract with the following features:

• At the outset, customers select a monthly fixed benefit of between £500 and £1,500.
• A claim payment period of up to12 months per claim.
• There is no limit to the number of claims a customer can make.
• At claim stage, there is no financial assessment, and no deductions are applied. The customer will receive their selected benefit amount once Aviva has accepted their claim.

Each year, a million people in the UK suffer a prolonged absence from work due to sickness, which can result in financial hardship¹. Despite this only 8% of UK families hold some form of income protection².

Living Costs Protection offers a simple and affordable form of income protection, and has been developed to enhance and expand Aviva’s existing income protection proposition by offering more choice to advisers and their customers. Living Costs Protection is sold through advisers and its simple design makes it easy for them to discuss the benefits of income protection with more clients. 

Living Costs Protection can provide an alternative solution to customers with fluctuating incomes such as the self employed and contractors, where the income-based benefit calculation required for traditional income protection at both point of sale and claim can be complex. In addition, it can provide a more affordable option for those in higher risk occupations.

Mark Cracknell, Head of Protection Distribution, Aviva, said:

"Within the industry we are all well aware of the need for better financial protection for a greater proportion of the population, in the event that they are unable to work due to illness or injury. Recent research from Aviva shows that nearly half (45%) of UK families with dependent children could only survive financially for a month or less before their savings would run out^3, and that nearly one in four families (24%) have no savings whatsoever to fall back on⁴. This demonstrates clearly just how much the average family would struggle if their income suddenly stopped. 

“Our new Living Costs Protection extends our existing income protection proposition, to give customers more choice. It is designed to make it easier for advisers to have a conversation with their clients about income protection. Our ultimate intention is to help more people get vital protection in place, by providing a further solution for advisers to offer their clients through our ALPS platform."

ENDS 

Media Enquiries:Monique Crockett | 07800 693182 | Monique.crockett@aviva.com

Jess Geoghegan | 07800 695673 | Jess.geoghegan@aviva.com 

Notes to editors:

1 The CII Building Resilient Households report

2 Aviva’s Protecting our Families Report, March 2017, page 6 

3 Aviva’s Protecting our Families Report, March 2017, page 9  

4 Aviva’s Protecting our Families report, March 2017, page 9 

• Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. 
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