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“The Automobile Association” (AA) was founded in 1905 to help motorists avoid speed traps made by police. In 1999 the company was demutualized and 2 separate businesses were created. The AA became a private limited liability company that provides driving lessons, financial services, breakdown cover and a wide variety of insurance services. “AA Motoring Trust” is another business that concentrates on public interest and engages in road safety activities. In 2007 the company merged with “Saga Group” and formed a new company called “Acromas Holdings”. “The AA” life insurance is outsourced to another insurance company “Friends Life”. The company offers three kinds of life insurance to its clients: level term life insurance, decreasing term life insurance and 50 Plus life insurance. What is more, a company can attach a critical illness cover to all three types of life insurance. For every life policy that is issued a company gives a small gift to the clients: a voucher worth £40 for shopping at “Marcs & Spencer”. For people who are “The AA” members this vouches is worth £50.
Premiums for this kind of policy start from £5 a month. The cover can be written for single or joint life and the company guarantees that the premiums will never go up. What is more, a cover will never be reduced if a person pays all the monthly premiums. On the other hand, if a person wants to increase the cover, the company allows him to do that.
The company also offers decreasing term life insurance that is designed to repay the outstanding liabilities of the mortgage. The premiums are set at the beginning of the policy and start from £5 per month. This life insurance is cheaper than level term life insurance and as a result for the same premium a bigger amount of cover can be purchased. The person has the freedom to increase the cover according to the circumstances. The amount of cover is calculated every month and is set to be enough to repay the liabilities of the mortgage. What is more “The Automobile Association” gives a free cover for up to three months if a person is waiting for a purchase of the house to be completed.
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This type of cover is designed by “The Automobile Association” for those people that are 50 and older. The money is paid out to the dependents and can be used to cover such expenses like funeral costs. The premiums start from £8 a month. The company guarantees acceptance to all the citizens of United Kingdom that are aged between 50 and 80. No medical check up is needed and the company does not does not require the customers to provide information about their health conditions. The policy has no cash in value and if a person stops paying the premiums the policy will be cancelled. Monthly premiums are fixed and the company guarantees that they will not rise. The dependents are not allowed to make a claim on the policy during the first two years after the contract was written. However, if a person dies during the first two years of the policy, the company returns the amount worth 1.5 times of all the premiums that were already paid to the insurance provider. What is more, an accidental death benefit is automatically attached to all over 50 Plus life insurance policies. This means that if a person dies during the first two years because of an accident, his dependents can make a claim and expect to get the full benefit that is stipulated in life insurance contract. The company also advice the clients to take into account that because of inflation the values of the cover will reduce over time. As a result, the cover chosen should be a little higher than sum needed by the dependents.
“The Automobile Association” offers an additional benefit that can be attached to any of the above described life insurance types. A person can apply for this cover if he is a resident of United Kingdom, is from 18 to 54 and has a life insurance policy that lasts for a minimum of 5 years to a maximum of 40 years. People that decide to buy Critical Illness cover have to be aware that for those life insurance policies that have Critical Illness benefit attached to the premiums and covers are not guaranteed. This means that if the health of a person or the circumstances change the cover can be reduced or the premiums can be increased. Critical illness cover from “The Automobile Associates” cover most forms of cancer, multiple sclerosis and stroke. Full list of all the illnesses is subject of discussion with the client.