AIG Life Limited, formerly Ageas Protection, is the UK life insurance arm of leading international US insurance giant American International Group Inc (AIG).
With its roots dating back to 1919, AIG has grown to be a global organisation serving customers in more than 80 countries worldwide.
AIG Life Limited has been operating in Europe for more than 65 years and is currently the largest US-headquartered property-casualty insurer in Europe. It is also one of the UK’s largest property-casualty insurance companies by gross written premiums.
AIG’s Income Protection offers comprehensive cover with in-built flexibility and a number of additional benefits. These include a 24 / 7 virtual GP, mental health support and nutrition consultations.
Independent Protection Expert at Drewberry
AIG offers a comprehensive Income Protection offering with in-built flexibility and a number of policy options available.
AIG’s Income Protection Coverage
60% up to £30,000, 55% between £30-£100,000, 45% above £100,000.
£20,833 max benefit per month / £249,996 per year.
Maximum Claims Period
Full cover to term
24 months limited payment term
4 / 8 / 13 / 26 / 52 weeks
Waiver of Premium
When you apply for Income Protection, insurers base the monthly benefit you’re entitled to on your earnings. If your earnings fall between you taking out the cover and you needing to make a claim, insurers recalculate your benefit accordingly based on your new salary.
However, AIG has a minimum benefit guarantee. If your benefit was more than £1,500 per month but your income has fallen and, on recalculation, your benefit would be less than £1,500 per month, AIG promises to still pay you £1,500.
AIG’s additional benefits — particularly its Smart Health program — are free with the policy. They’re among the most comprehensive in the industry.
AIG includes waiver of premium automatically. As soon as you start to receive a benefit from AIG after the end of your deferred period, you no longer have to pay your premiums until you’re well enough to return tow ork.
AIG lets you increase your cover by the lower of £835 per month or 50% of your monthly benefit, providing you request the increase within 13 weeks of one of the following major life events:
If you still meet the definition of incapacity laid out in your policy but choose to return to work either in a different occupation or in your own occupation for less money due to restricted duties or hours, AIG will pay a reduced monthly benefit to ‘top up’ your earnings.
AIG will continue to do so until your income is equal or greater to what it was when you stopped work.
If your income is less than you originally stated at the time of a claim and makes you ineligible for your full benefit, AIG will offer you a refund in the form of a premium holiday when you get back to work.
AIG’s early intervention rehabilitation program is designed to help you from the moment you are unable to work due to illness or injury. It provides assistance during your deferred period and sources specialist providers to suit your needs.
AIG offers optional index-linked Income Protection. If you choose this option your benefit amount increases each year in line with inflation as measured by the Retail Prices Index (RPI). AIG caps the increase at 10% per year.
Note that if you opt for indexed cover, your premiums will go up by a higher amount than your benefit in percentage increase terms.
Provides you with unlimited access to a suite of six services to help you manage your health and wellbeing. These include:
All six services can be used 24 / 7 / 365 at no extra cost. They’re also available to your immediate family, including children up to the age of 18 (21 if they’re in full-time education).
Leading UK Charity Winston’s Wish provides specialist support to help bereaved children after losing a parent or sibling. The charity offers a wide range of help and support including online resources, publications, a telephone helpline and professional support and group work.
Should you pass away or your child suffers another bereavement, AIG has a partnership with Winston’s Wish to help bereaved children get the specialist support they need.
Should a doctor diagnose you a terminal illness (where you have less than 12 months to live), AIG will pay out a lump sum worth 12 times your monthly benefit. This is not subject to your policy’s deferred period and you can receive it as soon as you make a claim.
If you survive longer than 12 months but are unable to work, AIG will continue paying out your normal monthly benefits as standard. Your policy will continue to do this until, according to your definition of incapacity, you are well enough to work.
Should the worst happen and you pass away during the term of your policy, AIG pays out a £10,000 lump-sum to your estate.
If you are hospitalised during your deferred period, AIG pays £100 per night for each night you spend in hospital beyond 6 nights and up to a maximum of 90 nights during the life of the policy.
Should you suffer one of six six traumatic conditions (blindness, deafness, loss of hands or feet, loss of independence, loss of speech, paralysis of limbs) you can claim a lump sum payment of the lower of six times your monthly benefit or £50,000.
However, your ability to claim for these conditions depends on the severity of the condition and also whether or not it’s permanent and irreversible.
If your spouse / civil partner or one of your children suffers an injury or illness and is incapable of performing a certain number of daily tasks for 3 consecutive months, AIG pays out the lower of £1,500 or your monthly benefit.
You can claim this benefit once a month for up to a maximum of 12 months for each family member.
AIG’s Income Protection comes with a wide variety of additional benefits. These, particularly AIG Smart Health, make AIG’s policy one of the best on the market in terms of the benefits on offer.
AIG is one of only four Income Protection providers in the UK to offer Income Protection Insurance to applicants with type 2 diabetes. They are also the only provider to offer diabetics Income Protection policies with guaranteed premiums and not exclude diabetes.
AIG offers guaranteed premiums as standard, so they’ll only go up if you’ve requested your benefit be indexed or you decide to increase your cover.
While this is often beneficial for low-risk workers, such as office staff, manual workers may get better rates with age-banded premiums, which AIG doesn’t offer. Check with your adviser to see which is best for you.
AIG offer a monthly guaranteed benefit of £1,500. This means that if your salary is decreased at a time when you need to claim on your policy, AIG will still pay out the lesser of your insured monthly benefit or £1,500.
AIG only offers ‘own occupation’ or ‘suited occupation’ cover for Income Protection. For suited occupation cover the definition includes own occupation cover for the first 12 months. In some cases they may offer ‘specified work tasks’.
AIG’s minimum deferral period is 4 weeks. That means you’d need to be able to last 4 weeks using savings / sick pay etc. before your policy starts paying out. If you need a shorter deferral period, there are other insurers which offer 1 week or even day 1 cover.
However, if you are diagnosed with a terminal illness, AIG waives the deferred period and pay out as soon as you make a claim.
AIG discounts income from state benefits when looking at ongoing income after an incapacity.
Some other insurers take state benefits into account when assessing your income after an illness / injury and won’t pay the full benefit amount if you’re in receipt of benefits such as Employment and Support Allowance.
As you can see, when looking to compare Income Protection Insurance there are lots of points to consider. With so many factors and a lot of different terminology at play, it can be tricky to do an accurate like-for-like comparison between providers.
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For help and fee-free Income Protection advice, please don’t hesitate to get in touch. You can reach us on 02084327333 or email firstname.lastname@example.org.
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