"If two individual policies are selected, then the payout level for these conditions is effectively doubled. These conditions for either child(ren) or parents can have a huge impact on the family."
- Alan Lakey, Director at CIExpert
Aviva has introduced six different pregnancy complications, paying £5k per affected pregnancy per policy. Pregnancy complications covered now include Disseminated Intravascular Coagulation (DIC), Eclampsia (but excluding pre-eclampsia), Ectopic pregnancy with surgery to remove the fallopian tube, Foetal death in utero after at least twenty weeks, Hydatidiform moles, and Placental abruption but excluding placenta praevia.
The provider said these changes represent the “first step of bringing elements of the AIG Life UK proposition to Aviva since it completed the acquisition in April.”
Under its upgraded children’s benefit, Aviva has added four new conditions that will receive a £25k payout upon diagnosis. These conditions are Cranialsynostosis, Edwards Syndrome, Osteogenesis Imperfecta, and Patau Syndrome.
Shortly after completing its acquisition, Aviva announced its protection business plans, which confirmed that it had decided to continue with the Aviva-branded core proposition only. The final submission date for AIG-branded quotes from intermediary distributors was 15th August 2024.
READ MORE: Aviva plans to retain AIG Life’s High-Net-Worth channel and “strong partnership distribution”
Emma Astley, Founder of CoverMyBubble Ltd, said she was “absolutely gutted and shocked Aviva have not taken on part of AIG’s propositions, especially the bump, childbirth defects and children’s cover. Very frustrating for advisers who want to give their customers the best cover and premium options.
“Aviva is so highly priced within our market and others offer so much more for young families. Very disappointing. I filled in a very detailed survey on what we as advisers would like, and looks like nothing has been taken on board, what was the point?” Emma added.
Joanne Legg, Sales & Relationship Manager at Protection Guru, agreed that it was a “real shame for the industry and customers. The AIG Life ‘core’ Critical Illness product offered something different to the industry standard core contracts…It’s a shame.”
Ergo, Aviva’s product upgrades have been welcomed. Payments for Craniosynostosis or Osteogenesis Imperfecta could help parents afford accessibility alterations needed to their property to support their child(ren)’s condition(s). For Edwards or Patau Syndrome, these payments will help alleviate financial pressures for parents requiring leave from work to support their child(ren).
The provider has also increased the payout for child death benefit from £5k to £10k; over a fifth (23%) of CI claims for children were for child death benefit during 2023. Furthermore, it has improved payment levels for eleven of its covered fractures. The most sizable improvements are the ankle and pelvis which see payments increase from £2.5k to £6k.
To note, these product changes only apply to upgraded benefit plans and pay a fixed £25k unless stipulated. Added pregnancy complications only apply to the upgraded adult plan.
“These changes not only represent a valuable addition to the cover we offer our customers & their children, but it’s also an important first step in bringing the proposition of Aviva & AIG Life UK’s closer together,” said Fran Bruce, Managing Director of Protection at Aviva.
In response, Alan Lakey, Director at CIExpert, explained that “Children’s CI has been the new battlefield in recent years and fresh from the absorption of AIG Life, Aviva has included these various congenital conditions which are generally discovered at birth or during pregnancy. Whilst not having a substantial impact the changes are uniformly positive and will prove beneficial to the parents of claimants.
“It’s worth noting that the coverage of these conditions aligns with most policies in the market, only available when the enhanced version of the policy is selected. Again, as we highlighted in our ‘Single is Best’ campaign, the importance of early children’s cover and pregnancy complications is a factor that can easily be overlooked when selecting a joint policy with a focus on just covering replacement of the mortgage.
“If two individual policies are selected, then the payout level for these conditions is effectively doubled. These conditions for either child(ren) or parents can have a huge impact on the family,” he concluded.
