AIG Life Insurance Review 2023

Founded in 1919, American International Group, Inc.

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Founded in 1919, American International Group, Inc. (AIG) has over a century’s experience of providing protection products for both individuals and businesses.

It operates in 80 different countries, meaning that its reach is truly global.

In the UK alone, AIG has equity valued at an impressive £3.4 billion.

Over recent years AIG Life (its insurance branch) and its Critical Illness Cover have been recognised for the service they provide with a number of awards, including:

  • 2019 Best Provider for Service Excellence – The Primis Network’s Awards
  • 2018 Best Online Service Team and Best Claims Management Team – COVER Customer Care Awards
  • 2018 Best Critical Illness Provider – Lifesearch
  • 2018 Gold Rating – Defaqto 2018
  • 2018 Best Protection Provider – First Complete

Life insurance options from AIG

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AIG’s life insurance is designed to provide financial support to your family in the event of your death.

While there is no maximum cover, it’s always wise to refer to the terms and conditions of individual policies to see what’s covered and what isn’t.

Everyone’s insurance requirements are different, and AIG Life offers a wide range of options to suit most needs.

Term insurance

Term insurance provides cover for a fixed amount of time, and provides a lump sum pay-out to your beneficiaries should you die during the term of your policy.

Both the period of cover and the amount of cover are decided by you.

As with other insurers, AIG Life offers increasing term, decreasing term, level term policies.

Unlike index-linked policies, AIG Life’s increasing term policies raise the value of your cover by 5% per year in return for increased monthly premiums.

These may go up at a higher rate than your cover.

AIG’s decreasing term policies, designed to help with long-term debts, such as mortgages, stand out in that customers can choose from a decrease of 5%, 6%, 7%, 8%, 10%, 13% or 15% to align with the requirements of the debt repayment.

Family income benefit

Family income benefit provides the same cover as term insurance, but makes the pay-out in monthly instalments, rather than one lump sum.

Start Range

AIG’s Start Range can be a good way of getting insured on a low budget.

The monthly payments, known as premiums, are smaller than standard life cover at the beginning of your policy.

However, they increase over time and could end up being more costly in the long-run. Annual increases to premiums are subject to your approval, but declining them could result in a decrease to your pay-out.

Instant life insurance

Instant life insurance speeds up the process of applying for cover.

No medical evidence is needed, and the application is done via a quick online application form.

Who can take AIG life cover?

AIG life cover is available to anyone between the ages of 17-86.

Full Medical Underwriting is carried out at the very start of your application, which means that you will have to disclose your entire medical history to AIG Life.

Both single and joint (not limited to your spouse) policies are available, and single policies can be turned into joint policies at any time.

As long as there are 3 years remaining on the term of your cover, it’s also possible to turn a joint policy into two separate ones, which can be useful in the event of a divorce or the dissolution of a civil partnership.

Life cover for the over 50s

We compare plans from the leading life insurance providers

The Over 50s Life Plan offered by AIG Life provides a lump sum pay-out to help with funeral expenses and other small debts.

It’s aimed at customers with a smaller mortgage, who no longer need to provide for a young family, and can be a perfect choice for those in the autumn of their lives.

Terminal illness cover

Terminal illness cover comes as standard with AIG Life cover.

If it has been confirmed by a medical expert that you have fewer than 12 months to live, the pay-out is expedited so that you can settle your debts and achieve peace of mind before you die.

What else is included with AIG Life cover?

Best Doctors Service

If you’re diagnosed with a serious illness, AIG Life’s Best Doctors Service will enable you to get a second opinion and treatment recommendations from a globally renowned specialist for up to 3 years after a claim is made.

Winston’s Wish

AIG Life work in partnership with Winston’s Wish, one of the UK’s leading charities for childhood bereavement.

If you are a parent who dies, or is diagnosed with a terminal illness during the term of your policy, AIG Life will cover the costs of your family receiving support from Winston’s Wish.

Claims Support Fund

AIG Life will pay up to £300 to cover minor expenses while beneficiaries are waiting for a life insurance claim to be processed.

Funeral Pledge

For families who might struggle to afford funeral costs, AIG will advance up to £10,000 of the agreed pay-out to help cover this.

Accidental death benefit

If you die as the result of an accident whilst waiting for AIG Life to underwrite your policy, your beneficiaries will be entitled to a pay-out of up to £500,000.

AIG Life’s optional extras

Critical illness cover

AIG Life’s optional critical illness cover is available to those below the age of 75.

Over 80 critical illnesses are covered, 30 of which entitle you to a proportion of your benefit sum.

Children can also be covered up to the age of 22, and 7 of the conditions covered are specific to children and adolescents.

Adding total permanent disability to your critical illness cover lets you claim the entire pay-out of your policy if you find yourself in a situation where you when you first take out the cover if you are incapacitated for over 26 weeks and it’s been confirmed that the condition is permanent.

Income protection

For situations where your inability to work is temporary, AIG Life’s income protection can help with household costs by providing up to 50% of your normal gross income. There is a maximum period for this, and policies should be checked for terms, limits and conditions.

Waiver of premium

This option ensures that the cost of your monthly premiums is covered in the event of long-term illness and inability to work.

Trust Funds

If you’re worried about the effect of inheritance tax on your legacy, AIG Life provides the option of putting your policy into an electronic online trust. It’s always a good idea to get professional legal advice before setting up a trust fund, but AIG Life’s own comprehensive guide can be found here.

How to get a quote for AIG life insurance

Using a good life cover comparison site is essential to find the right policy for your budget and circumstances.

However, should you wish to discuss your options directly with AIG Life, they can be reached by phoning 0330 390 0512.

Defaqto ratings

Type Plan name Rating
Critical illness (standalone) CIC Start Critical Illness With Term Assurance 3
Critical illness (standalone) Key 3 Critical Illness Insurance 3
Critical illness (standalone) Key 3 Critical Illness With Life Cover 3
Critical illness (decreasing) Key 3 Critical Illness With Life Cover 3
Critical illness (decreasing) YourLife Plan Term With CI Choices - Core 5
Critical illness (decreasing) YourLife Plan Term With CI Choices - Enhanced 5
Critical illness (level term) Key 3 Critical Illness With Life Cover 3
Critical illness (level term) CIC Start Critical Illness With Term Assurance 4
Critical illness (level term) YourLife Plan Term With CI Choices -Core 5
Critical illness (level term) YourLife Plan Term With Cl Choices - Enhanced 5
Income protection YourLife Plan Income Protection 5
Life assurance (direct) YourLife Plan Term Assurance 5
Life assurance (decreasing) Instant Life Insurance 3
Life assurance (decreasing) YourLife Plan Term Assurance 4
Life assurance (level term) Instant Life Insurance 3
Life assurance (level term) Life Start Term Assurance 3
Life assurance (level term) YourLife Plan Term Assurance 4
Whole of life assurance Care Cover With Whole Of Life Insurance 4
Whole of life assurance Whole Of Life Insurance 5
Defaqto ratings were reviewed on 01/10/2023