Aviva enhances group-risk products

Edited by the Employeebenefitstalk editorial team Jan 21, 2010

Aviva has increased the free cover limit formula on its group life policies from GBP15,000 to GBP20,000 (multiplied by the number of lives in a scheme, subject to a maximum of GBP1.25m).

Aviva has also increased the maximum free-cover limit from GBP1.25m to GBP1.5m for schemes covering 500-2,999 lives, and to GBP1.75m for schemes covering 3,000 lives or more.

Aviva has introduced other benefit options to its group income-protection product.

For example, the lump-sum option allows employers taking out a unit-rated group income-protection scheme to choose a two, three, four or five year limited term followed by a lump-sum payment of one, two, three, four or five times salary, or up to nine times the annual income benefit (up to GBP1m per life).

This is instead of covering employees until retirement age.

A lump-sum option helps employers control the cost of their group income-protection scheme while still offering employees the rehabilitation support available on a standard group income-protection policy.

If the employee is unable to return to work at the end of the chosen term, the lump-sum benefit paid to the employer can help fund early retirement or can be used to cover the cost of recruiting a replacement.

Where an employee is unable to return to work as a result of long-term illness and is removed from the payroll, the pay-direct option allows the employer to pay its group income-protection benefit direct to the employee.

This option means there is no obligation for the employer to keep the employee on its payroll in order to receive benefits, while also giving it the peace of mind that its former employee will continue to receive regular benefit payments for the duration of the group income-protection contract.

The new benefits follow the introduction of once-only underwriting, tele-interviews for medical underwriting, a bereavement helpline and improved free cover and maximum benefit limits in 2009.