Drewberry™ provide pensions, investment and insurance advice for Money to the Masses readers throughout the UK.

Aegon Income Protection logo

Aegon Income Protection Insurance

Personal Protection

Founded

1831

Company Type

Public Limited Company

Company Overview

Aegon was founded as Scottish Equitable in 1831 in Edinburgh and is still headquartered in the city. Dutch insurer Aegon N.V. bought a 40% stake in Scottish Equitable in 1994 and became a 100% stakeholder in 1998.

aegon income protection

Scottish Equitable rebranded as Aegon Scottish Equitable in 2006 before shortening the name to Aegon in 2009.

Today, Aegon has 2 million customers in the UK and is a global provider of protection products, pensions and asset management operating in 25 countries worldwide.

Documentation

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This Aegon Income Protection Guide…

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overview of aegon income protection

Income Protection Overview

Aegon’s Income Protection policy offers a wide range of benefits to choose from, with the option of additional flexibility and changes that can be made as you require.
 

Aegon uses the ‘own occupation‘ definition for the vast majority of occupations

 

Aegon’s monthly benefit on an Income Protection policy will never be less than the lower of £1,500 per month or the amount of cover on the plan.

 

Aegon’s Income Protection includes the waiver of premium period as standard, subject to residency requirements

 

Rehabilitation benefit – if you can only return to work part-time after making a claim, Aegon could top up your part-time earnings to the full benefit amount.

 

Proportionate benefit – if you can only return to work at a lesser role and at a lower income in the same company, Aegon will support you by topping up your income to the full benefit amount.

Aegon deducts state benefits from your payout

If you’re insured for the maximum benefit Aegon allows based on your income, Aegon takes into account state benefits and deducts them from your monthly benefit. This is to ensure you’re not receiving more in income than Aegon’s maximum allowable monthly payout.

 

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aegon policy conditions

Aegon income protection Policy Conditions

Overview of Key Policy Details

Policy Type

Income Protection

Premium Type

Guaranteed, although reviewable premiums are also available.

Maximum Claim Duration

Unlimited (to the policy cease age or the policyholder’s death)

Incapacity Definition

Own Occupation for the vast majority of occupations

Deferred Period

4 / 8 / 13 / 26 / 52 weeks

Indexation

Optional
The indexation on Aegon’s Income Protection benefits is capped at a maximum of 10%.

Waiver of Premium

Automatic, providing you’re resident in the UK.

Maximum Cover

The lower of 55% of pre-incapacity earnings up to a maximum of £150,000 per year

Minimum Entry Age

18 years old

Maximum Entry Age

59
Policyholder must be no older than 70 when the policy ends

Minimum Policy Term

5 years

Maximum Policy Term

51 years

Guaranteed Insurability

With no need for an additional medical if you’re increasing your mortgage, changing your marital status, having a child or have had a salary increase

Guaranteed Benefit

The lower of £1,500 per month or the amount of cover on the plan
If your income has fallen, Aegon pledges to pay the lower of £1,500 or your maximum benefit. Where the policy’s monthly benefit is less than £1,500 and at the time of the claim 55% of the insured person’s monthly income is at least 90% of the monthly benefit amount, the monthly benefit payable will be the benefit amount agreed.

Policy Exclusions

Incapacity resulting from self-inflicted injuries; residency requirements (see ‘policy exclusions’ below)

We have taken care to ensure that the information on this Drewberry owned website is accurate. However we can give no guarantee as to the accuracy of the content of the site. We accept no liability for any losses whether direct or indirect arising from errors on our part.

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Aegon Income Protection Review

Drewberry reviews Aegon Income Protection…

Aegon offers a comprehensive Income Protection offering with in-built flexibility and a number of policy options available.

 

Key Comparison Points

  • Aegon’s maximum of 55% of a policyholder’s pre-incapacity earnings is lower than for some other insurers, such as British Friendly and Shepherds Friendly, which both offer a maximum of 70% of earnings. If you need to insure more than 55% of your earnings, another insurer might be more appropriate.
  • Aegon caps the policy benefit at a maximum of £150,000 per year. While this should be fine for most people, there are insurers who offer larger benefits for higher earners.
  • However, Aegon’s individual Income Protection policy does offer a guaranteed benefit, meaning the monthly payout on Aegon’s Income Protection policies will never be less than the lower of £1,500 per month or the amount of cover on the plan. This might be useful if your income has fallen in the period between you taking out the policy and making the claim, perhaps because you’ve had to reduce your hours due to ill health.
  • Aegon Income Protection is a long-term benefit, meaning that the cover will pay out until the policy cease age in the event of a claim, unless the policyholder dies or cancels the insurance.
  • Aegon’s minimum entry age of 18 is generally the industry standard, but there are insurers that offer Income Protection to people from the age of 16 or 17 for those wanting cover from this age.
 

Policy exclusions

  • Self-inflicted injuries

Travelling/residing for 13 continuous weeks in any 52 week period in any countries outside of:

  • the UK (which includes the Channel Islands and the Isle of Man)
  • the other EU-27 countries and selected other Western European countries (e.g. Iceland, Norway, Liechtenstein)
  • Turkey
  • North America
  • Australia and New Zealand
  • or travelling/residing in the above countries (excluding the UK) for more than 26 continuous weeks out of 52.
 

Financial strength

With Scottish Equitable founded before Queen Victoria was on the throne, the insurer has stood the test of time.

Aegon N.V., the parent company, is listed in both Amsterdam and New York. Although officially founded in 1983 with the merger of two separate insurers, it can trace its history back more than 170 years. Aegon N.V. is one of the world’s ten largest insurance companies, with total revenue of €31.29 billion in 2015 and €20.31 billion in premium income.

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Aegon Income Insurance: Questions and Answers

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We aim to know the policies we advise on, inside out and back to front. Below is a couple of commonly asked questions with regards to the policy coverage of the Aegon permanent health insurance product answered.

If you need any further help please do not hesitate to call us on 02084327333.

Sam Barr-Worsfold
Independent Insurance Expert at Drewberry

Q. I’m looking at taking this policy out until age 65 as that’s when I hope to retire but am I tied into this policy at all? Are there any penalties if I cancel?

A. No, as with most income protection insurers, Aegon understands that you circumstances can change over time. You can cancel the policy at any time, usually by providing the insurer with a notice period highlighted in your policy terms.

However, rather than cancelling the policy outright, it’s probably best to have a run through with an adviser before making any changes. If you’re considering cancelling your policy simply because your circumstances have changed, perhaps because you’ve moved to a company that provides a longer period of sick pay, consider adjusting the deferred period so it aligns with the new sick pay entitlement rather than cancelling the policy entirely.


Q. Does Accident and Sickness Insurance from Aegon cover me while I’m living and working abroad?

A. Not on a long-term basis. If you reside outside the UK (including the Channel Islands and Isle of Man); the EU (and various other Western European countries such Iceland, Norway, Andorra, Liechtenstein etc.); Turkey; Australia and New Zealand; or North America for a continuous period of 13 weeks or more out of any 52 week period, your cover is suspended until you return to the UK for 39 continuous weeks.

If you reside within the above countries (excluding the UK) for a continuous period of 26 weeks out of any 52 week period, your cover is suspended until you’ve returned to the UK and resided there for 26 weeks.

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Compare Top 10 UK
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Insurers
 
Takes approx. 60 seconds
Type of Policy
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