New Family Protection Product from Aviva Life & Pensions 📰⚡💰
Aviva Life & Pensions has recently introduced a unique new protection product called Decreasing Term Family Protection. 👨👨👧👧
This policy is for family protection only and is not suitable for mortgage protection.
This product will provide you with a higher amount of life cover when you really need it, when your family is younger. As your family gets older, your requirement for life cover reduces and the sum assured will reduce in line with the term of your policy. 📊📉
For example, a 20-year policy with an initial sum assured of €100,000, will see the sum assured reduce by €5,000 each year until the end of the term.
While this product can be bought on a standalone basis, we see it as part of an overall solution where the need for cover is hampered by budgetary concerns. 💰
A non-smoker couple both aged 35 next birthday, could spend €75 per month purchasing life cover of €635,000 on a level term basis, with the option to extend the policy at any time during the term.
Alternatively, they could purchase a level term policy with a sum assured of €100,000 for 20 years at a cost of €15 per month.
For an additional €60 per month, they could purchase life cover of €1,080,000 on a decreasing basis (where the sum assured reduces each year by €54,000, thus providing them with initial protection of €1,180,000.
Both options cost the same. However, it will be 11 years before the sum assured in option 2 reduces below that of option 1.
Source: Aviva Life & Pensions Ireland DAC as at Oct 2020, all quotes assume proposals are accepted at standard rates.
Protection, be it your family, your mortgage, or your income, is the foundation of any strong financial plan.
MoneyCoach is here to help you identify your family’s protection needs and build value-for-money solutions best suited to your financial circumstances. 🤝
📞 01 669 1040