About Aegon
Aegon is a leading provider of income protection, alongside other things like life insurance, pensions and asset management. It's one of the largest in the world, with 29 million customers in 20 countries (3 million of which are in the UK). It started out as Scottish Equitable back in 1831 and has grown ever since into a global brand. Aegon’s mission, as they put it, is to help people in the UK and elsewhere achieve a ‘lifetime of financial security’.
Aegon income protection policy features
If you buy your income protection insurance through Aegon, your policy is likely to come with the features outlined below. Here we'll explain what the feature is, what it means for you, and how it compares to other versions from different insurers on the market.
| Policy feature | What this feature provides | Anorak's review |
|---|---|---|
| Back-to-work benefit | If you become able to work while making an income protection claim, but you can only go back part time (or to a different job with a lower salary), you’ll continue to receive a proportion of your income protection benefit. The idea is to make up for a potential income shortfall while you recover. | Aegon’s back-to-work benefit is in line with other insurers in the market, offering a similar proportion for a similar amount of time. This is a handy benefit to have included in your policy, as it gives you flexibility and security as you make your return to work. |
| Benefit guarantee | Your income protection benefit will never fall below £1,500/month – so long as you bought at least that amount of cover when you took out your policy. You normally need to be working a minimum number of hours to qualify for this benefit. | Aegon’s benefit guarantee on income protection policies is good. The amount is on par with other insurers who offer this benefit. Meanwhile, other insurers offer lower benefit guarantee amounts, or don’t offer the feature at all. |
| Death benefit | If you die while insured by your Aegon income protection policy, a lump sum of £5,000 will be paid out to your family. | Some insurers don’t offer death benefit at all, so this is a good feature to have on your income protection policy. However, the amount paid out by Aegon is average among those that do offer this feature (some insurers pay out more). |
| Guaranteed insurability | You have the opportunity to increase your income protection cover after certain life changes. In an Aegon policy, this includes:
|
For the life changes it covers, Aegon’s guaranteed insurability feature is good, allowing you to increase your cover by up to 50% (though as with other insurers, there's usually a cap placed on the total amount of cover you can increase to). Some other insurers offer less flexible versions of this feature, don’t offer it for these particular life changes, or don’t offer it all.
On the other hand, some insurers are more flexible, allowing you to increase your cover by a greater amount, as well as in circumstances not covered by Aegon. Namely:
|
| Waiver of premium | This handy add-on means that you won't keep paying your monthly premiums if you're off work for medical reasons. You usually need to be off for a certain amount of time before you can claim this benefit. | Aegon’s waiver of premium benefit is in line with other insurers in the market. Having this benefit included in your policy means you don't have to worry about falling behind on payments if you lose your income for health reasons. |
Aegon income protection extra policy benefits
Aegon income protection policies also come with a number of extra benefits, outlined below. These features are what's known as ‘non-contractual’ – meaning they’re not related to the contractual conditions of your own policy, and are usually provided by a third party. Bear in mind that what's provided when you take out the policy is subject to change in the future.
| Second medical opinion service | This service, provided by RedArc, entitles you to a second medical opinion from a specialist. The outcome of the consultation would be summarised in a report that you can share with your GP. |
|---|---|
| Health and wellbeing service | This service provides access to counselling for you and your family, as well as web and mobile self-support tools. |
Aegon income protection exclusions/restrictions
When buying an income protection policy, it's just as important to know what isn't covered, as what is. In an Aegon policy, there's a few things to bear in mind:
- If you're living abroad, you're only able to claim on your income protection policy for a maximum number of weeks. The only way you could continue claiming beyond that point, if you still needed to, is if you moved back to the UK.
- You won't be able to make a claim on your policy if you've been unemployed for 12 months. You'll still be insured by your policy, but Aegon's terms change if you've been out of work for longer than a year, which would make it trickier to claim.
Aegon income protection claim rate
In 2020, Aegon paid out 91% of income protection claims. The 9% of claims not paid out were due to the person not meeting the definition for a valid claim. The most common reasons for claiming were cancer and mental illness.
Aegon income protection prices
The following prices are based on:
- Healthy 25-year old male or female office worker
- £1,500 of level income protection cover
| Product | Waiting period | Non-smoker | Smoker |
|---|---|---|---|
| Long-term income protection | 13 weeks | £36 | £39 |
| 26 weeks | £23 | £27 |
- Healthy 25-year old male or female plumber
- £1,500 of level income protection cover
| Product | Waiting period | Non-smoker | Smoker |
|---|---|---|---|
| Long-term income protection | 13 weeks | £90 | £100 |
| 26 weeks | £56 | £65 |
- Healthy 35-year old male or female office worker
- £1,500 of level income protection cover
| Product | Waiting period | Non-smoker | Smoker |
|---|---|---|---|
| Long-term income protection | 13 weeks | £46 | £55 |
| 26 weeks | £32 | £39 |
- Healthy 35-year old male or female plumber
- £1,500 of level income protection cover
| Product | Waiting period | Non-smoker | Smoker |
|---|---|---|---|
| Long-term income protection | 13 weeks | £117 | £142 |
| 26 weeks | £78 | £92 |
Prices based on: Aegon Personal Income Protection (full-term)
Quoted on: 06/03/2020
It’s important to make an informed decision when buying income protection – which is where Anorak can help. We scan all the major insurers to match you to the products most suitable for you, based on your unique needs. We give you peace of mind about who to go with (especially if your most suitable policy is from an insurer you’ve not used before).
What is income protection?
An insurance policy that pays a monthly amount if you can't work for any medical reason. It's designed to replace part of your missing income, so you'll always be able to cover the essentials, even if lose your income because of an illness or injury.
What does income protection cover?
An income protection policy covers you if you're unable to work and lose your income for medical reasons. This includes any illness or injury, physical or mental, that leads to you being signed off work by a medical professional.
What doesn't income protection cover?
Income protection won't cover you if you're not working for anything other than a medical reason – like redundancy or resignation. You won't be able to claim on your income protection unless you're signed off work by a medical professional.
How much does income protection cost?
The cost of cover is different per person because it depends on how much cover you buy, how quickly you'd need the policy to start paying out, and how much of a risk you are to insure (based on your age, health and lifestyle).
Will my income protection pay out?
Yes, if you meet what's known as your insurer's 'definition of incapacity' – in other words, you meet their criteria for being unable to work. This definition is based, among other things, on the job you do, and you can read it before buying the policy.
28 April 2022
Chenthuran Suthersan
Head of protection advice
