Aegon Income Protection Insurance – Introduction
On this page, you’ll find some key facts about Aegon Income Protection Insurance.
With over 3.5 million UK customers, Aegon was founded as Scottish Equitable in 1831. Its headquarters is still in Edinburgh. However, Dutch insurer Aegon NV bought a 40% stake in the business in 1994 and became a 100% stakeholder in 1998.
Aegon is a worldwide provider of protection products, pensions and asset management. It operates in 25 countries
How Financially Strong is Aegon?
In a nutshell, Aegon is a long-established company, with Aegon NV, its parent company being one of the world’s ten largest insurance companies. In the UK in 2016, Aegon paid out £123.4 million in Life, Critical Illness and Income Protection Claims.
Aegon Income Protection Insurance. Your At-A-Glance Guide
Life moves on from year to year, full of ups and downs.
Sometimes, life surprises us, and Aegon offers a flexible range of products to take this into account. To reflect this, you’ll be able to amend your cover with them to support any changes in your circumstances or lifestyle.
- Aegon uses the “own occupation” definition of incapacity.
- With Aegon, the monthly payment on an IP policy will never drop below £1,500 per month or the amount of cover in the plan.
- With Aegon Income Protection Insurance, subject to residency requirements, your cover will always include a waiver of the premium period.
- Proportionate benefit. If upon your return to work you can only return to a less challenging role (and a lower income), Aegon will top up your income to the full amount of benefit.
- Rehabilitation benefit. Aegon could, subject to certain conditions top up your earnings should you only be able to return to work on a part-time basis.
- State benefits. If you claim and receive state benefits, Aegon will take these into account. Normally, they will deduct this amount from your IP income in order to ensure that you don’t receive more than the monthly amount they allow with a claim.
Aegon Income Protection Insurance – Overview of Key Policy Details
|Policy Type||Income Protection|
|Premium||Guaranteed and Reviewable|
|Maximum Claim Duration||Unlimited (until the policy holder’s death or the policy cease age)|
|Incapacity Definition||Own occupation for most occupations|
|Deferred Period||4/ 8 / 13 / 26 / 52 weeks|
|Indexation||Optional. Capped at a maximum of 10%|
|Waiver of Premium||Automatic|
|Maximum Cover||The lower of 55% of pre-incapacity earnings up to a maximum of £150k per year|
|Minimum Entry Age||18|
|Maximum Entry Age||59. The policy holder must be no older than 70 years when the policy ends|
|Minimum Policy Term||5 years|
|Maximum Policy Term||51 years|
|Guaranteed Insurability||If you’re changing your marital status, having a child or increasing your mortgage before 55 years there is no need for an extra medical.|
|Guarantee Benefit||The lower of £1,500 per month or the amount of cover on the plan.
If your income has fallen, Aegon will promise to pay the lower of £1,500 or your maximum benefit.
Where the policy’s monthly benefit is lower than £1,500 and at the time of claiming 55% of the insured claimant’s monthly income is at least 90% of the monthly amount, the amount paid will be the benefit amount agreed.
|Policy Exclusions||Self-inflicted injuries resulting in incapacity. Also, residency requirements (refer to policy exclusions below)|
More Jargon-Free Information About Aegon Income Protection Insurance from Black Lion Insurance
We feel strongly that as a team of financial experts, we’re human beings first, and advisers second. So, we know how confusing income protection insurance can be if you’re not sure what you need.
We want to make things easy for you. Therefore, our team will never blind you with science – hence this easy-to-understand comparison guide below. Give us a call on 0203 146 2259 if you need further information or help from us.
Key Points about Aegon
- You can start your income protection cover with Aegon from 18 years old. This is the standard age for insurance products, but some insurers cover young people from the age of 16.
- Aegon has an insurance benefit cap of £150,000 per year. That is, you will not receive more than this amount. Some insurers, however, offer larger benefits for higher earners.
- Aegon income protection insurance offers a guaranteed benefit. This means that payments will never be less than £1,500 per month or the cover that’s on your plan. This is handy because you may already be working part-time (with a reduced income) before you claim, due to ill health.
- Aegon has a maximum 55% of gross income pre-incapacity earnings pay out. This is lower than Shepherds Friendly and British Friendly, for example. You may want to ask the experts here at Black Lion Insurance if you need higher cover.
- Aegon offers long-term benefit, which means that the pay out will continue until cease age if you claim, unless you die or cancel the insurance.
Income Protection Insurance. What Else Does Aegon Offer?
Health Assured. Aegon offers a health and wellbeing service. This provides you and your family with unbiased, impartial support on a comprehensive range of challenges and issues, whenever you need it during the life of the policy.
All insurers have exclusions, some more robust than others. Read through the following carefully. When it comes to income protection, we want you to be forewarned and forearmed. No nasty surprises…
- Self-inflicted injuries
- Travelling/Residency RestrictionsTravelling or living for 13 continuous weeks in any 52-week period in any countries outside of:
- The UK (including the Channel Islands and the Isle of Man)
- The other EU-27 countries and certain other western European countries (for example Liechtenstein, Norway and Iceland)
- North America
- Australia and New Zealand
- Or, travelling/residing in the above countries (apart from the UK) for more than 26 continuous weeks out of 52.
Do YOU need financial advice from Black Lion?
In our opinion, yes.
As with all insurance products, some providers may be more suitable for your needs than others. Income protection is designed to keep you or the key people in your organisation financially afloat should illness strike, or in the case of an accident or death.
Our aim is to educate our clients as much as we can; we work daily with our income protection partners, including Aegon, and we’re well versed in in the nuances of each provider and the cover that they provide.
So yes, rather than spend hours researching what you think is the best income protection policy, but which may turn out not to be, come to us.
Again, rather than invest your precious time finding a policy with potentially over-steep premiums, come to us. We may be able to offer you best-in-class options due to our negotiation power.
So, is Aegon income protection insurance right for you? Contact Black Lion Insurance to find out.
And don’t forget…
Income Protection Insurance. Enjoy 3 Months' FREE cover
Fill in the form on this page with the code BL3MF to qualify for THREE MONTHS’ FREE COVER when you set up your income protection policy with us.
How does an income protection insurance policy help when you need to claim?
You stop working due to an accident or illness, and stop earning an income.
You inform us, and we will guide you through the claims process with the insurer.
You will start to receive your monthly payout.
The monthly payout will continue for as long as your insurance policy covers.
What are your policy options?
Short-Term or Long-Term Protection
Short-term plans usually range from 6 months to 2 years. Long-term plans will pay out until you are well enough to go back to work, whether that’s 1 year or 10 years.
This can range from just a couple of days, up to a whole year. The standard length of time for most long-term insurance policies is 4 weeks.
Policy Cease Age
Maximum Pay-Out Period
What affects the costs of your policy ?
Policy Cease Age
The costs of your insurance depend on various factors.
The more you want to insure for each month, will subsequently increase your premium, as well as the length of the policy and your deferred period.
Your age can also play a role. The older you are, you are seen as more likely to make a claim and so your policy premium will reflect this.
It is important to declare any previous medical conditions or illnesses. Certain disorders may not be covered by your income insurance and others may mean you incur a higher premium.
You will also be asked about your smoking status. Smokers are deemed higher risk resulting in a higher cost for your insurance.
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We are a dedicated team of financial advisers, with years of experience in guiding our clients to a solution that meets their specific needs. We specialise in helping both employed and self employed individuals, as well as business owners on a variety of solutions, which range from life insurance, income protection insurance, keyman insurance and shareholder protection insurance.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.