Who is AIG?
AIG – or American International Group, Inc to give its full name – is an American brand with fingers in proverbial pies in more than 80 countries. Founded in 1919, it now offers a wide range of insurance products internationally, but in the UK its main area of focus is life insurance.
AIG Life Limited is the life insurance arm of AIG in the UK, Channel Islands, Isle of Man and Gibraltar.
What types of life insurance does AIG offer?
Alongside its critical illness cover and over-50s plans, AIG offers no less than 4 flavours of life insurance, including term insurance and whole of life insurance. All of its products pay out a lump sum in the event of either your death or diagnosis of a life-changing condition. All but AIG’s over-50s plans are available individually or as joint cover.
AIG’s life insurance products are only available through a financial adviser – you can’t buy directly from AIG.
AIG offers three types of term life insurance.
- Level Term Life Insurance, where both your monthly payments and the cover amount stays the same.
- Increasing Life Insurance, where the cover amount increases by 5% each year. Your monthly payments are reviewed annually and increase by a higher percentage.
- Decreasing Life Insurance, where your payments stay the same but the level of cover decreases over time, to zero at the end of the policy.
You can only apply up to age 55 (likely reflecting the lower health risks of younger people) and, unlike AIG’s other life insurance policies, the level of cover is capped. As with its term insurance, you can choose level, decreasing or increasing life insurance. With the latter, your cover increases by inflation (RPI) each year up to a maximum of 10%.
Premiums are based on your age and health at the start of the policy and rise over time to reflect increased risks as you get older.
AIG offers two variants on its critical illness cover:
- You can enhance cover by adding on protection in the event of permanent or temporary disability that pays a portion of the total cover if you are incapacitated (unable to work).
- Key3 Critical Illness Insurance covers only cancer, heart attack and stroke, which AIG says are the three most claimed-upon illnesses. It’s a cheaper option than full critical illness cover.
Premiums stop on your 90th birthday, though the cover will continue. AIG also offers something called “protected benefit”. As long as you’ve paid half the premiums due before you turn 90, if you cancel your policy or stop paying premiums, AIG will still pay a lump sum of at least half your original cover.
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Benefits of AIG life insurance
- Unlike some other insurers, for some plans, you don’t have to be resident in the UK to take out the cover and/or for a valid claim to be made (though you do have to be a British citizen).
- For some policies, you can add something called “waiver of premium” for an additional fee. Availability depends on your age and other factors, but it means that you won’t have to pay your premium if you’re unable to work for longer than 26 weeks.
- AIG’s over-50s plans are 5-star Defaqto rated, likely in part thanks to the protected benefit which means you’ll receive a partial lump sum even if you stop paying premiums, as long as you’ve made half of the payments due.
Drawbacks of AIG life insurance
- AIG’s life insurance policies are only available through a financial adviser – you can’t buy them directly.
- With most of AIG’s policies, unless you’ve paid extra for waiver of premium, if you stop making payments you won’t get any money back and your cover may stop.
AIG life insurance exclusions
- As with all insurance, if you don’t answer questions truthfully when you apply, this might invalidate your cover.
- You can’t claim under a terminal illness in the last 12 months of AIG’s life insurance plans.
- AIG’s life insurance won’t pay a claim if you die as a result of suicide within the first year of your policy.
- AIG’s critical illness policies only cover you for the conditions named in the policy.
- If you die because of anything other than an accident in the first two years of an over-50s plan, you will only receive 1.5 times the monthly premiums already paid, rather than the full amount. However, if you die because of an accident, you’ll get three times the current lump sum.
What’s the claims process for AIG’s life insurance?
You can make a claim by phone (0345 600 6815) or email (email@example.com). Having details of the policy and, depending on the claim, either the death certificate or relevant medical information will help make the administrative process run smoother during a stressful time.
Frequently asked questions
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