Planning for the future

Consider life insurance as you make plans for the year ahead

Grandfather and granddaughter

Whether you're moving home, getting married or starting a family, you need to consider making sure that your loved ones are financially protected if you die. We regularly take out insurance to protect our homes, belongings and cars – but what about ourselves? Putting a life insurance plan in place now will help give you some peace of mind.

Life insurance is a simple and affordable way to help protect your family, and provide you with some peace of mind.

Life insurance products to consider

Here is a short guide to life insurance products available that you might consider. Life insurance isn't a savings or investment plan, and so these policies have no cash value unless a valid claim is made. For more information, see our AA Life Insurance pages.

Family life insurance

Also called level term insurance, this type of policy could pay out a fixed cash sum in the event of your death, providing you've continued to pay your monthly premiums. This money could be used as your beneficiaries see fit – to pay off a mortgage or have money for everyday costs. You choose the amount of cover you need and how long the policy will last for (the policy term). The amount of cover and the monthly premiums remain the same throughout the length of the policy unless you alter your policy.

Mortgage life insurance

Although similar to level term insurance, these policies are used to help pay off a mortgage. You select whether the cash sum remains the same or decreases in line with your outstanding mortgage, so if you die during the policy term, the money could be used to pay any outstanding mortgage.

You need to decide which product suits you best, how much cover you want and how long you need it for. If you can't decide which product suits your needs, you could see our handy comparison table, or read our guide to family and mortgage insurance. Both AA Family and Mortgage Life Insurance plans are provided by Legal & General.

Critical illness cover

This covers you if you are diagnosed with a critical illness. We don't offer stand alone critical illness cover, but this can be added at outset to any AA Life Insurance Family or AA Mortgage Life Insurance policy, provided by Legal & General.

Over 50s life insurance

You might have paid off your mortgage and have no dependents living at home but there are other things you might need to provide for when you die. With costs of funerals rising, you might consider a policy that can contribute towards your own funeral. The cash sum from an over 50s life plan could also be used to cover any outstanding bills, or maybe give your grandchildren a helping hand.

We offer two types of over 50s life insurance, provided by Legal & General, 'fixed plan', and 'increasing plan'. To help you decide which product is suitable for you see our over 50s comparison table.

Funeral benefit option

This option can usually be selected when you purchase an over 50s life insurance policy. By selecting this option, your money is usually paid directly to a chosen funeral provider, who will arrange your funeral with your family. You can see more on these pages about the AA Over 50s Life Insurance plan, provided by Legal & General, and the funeral benefit option.

13 January 2015


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