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The logo of income protection insurer AIG

AIG Income Protection

YourLife Plan


2008 (as Ageas Protect)

Company Type

Limited Company

Company Overview

AIG Life Insurance Ltd is the official trading name of the UK life insurance arm of US insurance giant American International Group Inc.

The insurer got its foothold in the UK protection market when it acquired Ageas Protect in 2014. Ageas protect was formed in 2008 when Ageas expanded into the life protection market.

aig income protection

AIG is currently active in 100 countries and jurisdictions worldwide. It has been operating in Europe for more than 65 years and is currently the largest US-headquartered property-casualty insurer in Europe.

AIG is also one of the UK’s largest property-casualty insurance companies by gross written premiums in the UK.




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Income Protection Overview

AIG’s Income Protection policy contains a number of in-built flexibility options, including carer’s cover for parents and waiver of deferred period in the event of terminal illness.

AIG only offers own occupation or suited occupation cover for Income Protection, and for suited occupation cover the definition includes own occupation cover for the first 12 months.


AIG will waive the deferred period in the event of you being diagnosed with a terminal illness.


During the deferred period, AIG’s clients can use benefits such as Recuperation Benefit, worth up to three times their monthly benefit, which offers access to services such as physiotherapy. Clients also get access to Best Doctors second medical opinion service during this period.


If you can only return to work at a lower salary/fewer hours, AIG’s Rehabilitation Benefit will top up your earnings to match your monthly benefit.


Over-insurance protection – if you haven’t informed your adviser that your income has fallen and at the time of the claim AIG finds your new lower income 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


Carer’s protection means that if you have to leave work to give your dependent child full-time care as a result of them suffering an illness or injury, AIG will pay benefits for six months


AIG doesn’t take state benefits into account when assessing your monthly benefit.

Aegon deducts state benefits from your payout

AIG’s maximum monthly benefit cover is just 50% of your gross monthly income, which is at the lower end of the scale in terms of what Income Protection insurers will cover.

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AIG policy conditions

AIG Income Protection Policy Conditions

Overview of Key Policy Details

Policy Type

Income Protection

Premium Type

Guaranteed, and won’t change unless you’ve opted for an increasing (i.e. index-linked) benefit

Maximum Claim Duration

Unlimited (to the policy cease age or the policyholder’s death)

Incapacity Definition

Only own occupation or suited occupation cover, and suited occupation cover contains own occupation cover for the first 12 months of a claim

Deferred Period

4 / 8 / 13 / 26 / 52 weeks
Total waiver of deferral period in the case of diagnosis of terminal illness


The indexation on AIG’s Income Protection benefits is capped at a maximum of 10%

Waiver of Premium


Maximum Cover
(% Income)

50% gross monthly income

Maximum Cover
(£ per month)


Max. Policy Cease Age

69 years old

Minimum policy term

5 years

Maximum policy term

53 years

Min. Entry Age

17 years old

Max. Entry Age

54 years old

Guaranteed Insurability

After 13 weeks of being insured in the event of you increasing your mortgage, changing your marital status, having a child or have had a salary increase (subject to certain conditions).

Overseas Travel

For a maximum of 26 weeks if you are resident outside the UK, Channel Islands, Isle of Man or Gibraltar at the time of the claim and for the entire period of the claim.

We have taken care to ensure that the information on this Drewberry owned website is accurate. However we can give no guarantee as to the accuracy of the content of the site. We accept no liability for any losses whether direct or indirect arising from errors on our part.
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AIG Protection Review

Drewberry reviews AIG Income Protection…

AIG offers a comprehensive Income Protection offering with in-built flexibility and a number of policy options available.


Key Comparison Points

  • AIG’s maximum of 50% of a policyholder’s pre-incapacity earnings is one of the lowest among Income Protection Insurers. Other providers, such as British Friendly and Shepherds Friendly, both offer a maximum of 70% of earnings. If you need to insure more than 50% of your earnings, another insurer might be more appropriate.
  • AIG’s maximum annual benefit for Income Protection is £150,000 per year. While this should be fine for most people, there are insurers who offer larger benefits for higher earners.
  • AIG pays Income Protection benefits over the long-term, so the cover will last until the policy cease age in the event of a claim, unless the policyholder dies or cancels the insurance.
  • AIG’s minimum entry age of 17 is lower than many others in the industry, which use a standard entry age of 18. This makes AIG a good option for income protection for young people.
  • 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.

Policy exclusions

  • Self-inflicted injuries

Financial strength

AIG’s UK and European operations come under the umbrella of US insurance giant AIG. AIG can trace its origins back to 1919 and the formation American Asiatic Underwriters (AAU) in Shanghai, so it’s been trading for the best part of a century.

AIG did require intervention from the US government during the 2008/09 financial crisis after it ran into severe difficulties and was deemed too big to fail. However, by 2012 the US Treasury had fully re-privatised AIG and sold its last remaining AIG shares, achieving a $22.7 billion profit on the bailout.


AIG Income Protection: Questions and Answers


We aim to know the policies we advise on, inside out and back to front. Below are a couple of commonly asked questions about the policy coverage of the AIG’s permanent health insurance offering.

If you need any further help please do not hesitate to call us on 02084327333.

Sam Barr-Worsfold
Independent Insurance Expert at Drewberry

Q. Does Accident and Sickness Insurance from AIG cover me while I’m living and working abroad?

A. Not on a long-term basis. If you’re residing outside the UK (including the Channel Islands and Isle of Man) and Gibraltar at the time of making a claim, and reside outside those places for the duration of your claim, then AIG will cease paying your Income Protection after 26 weeks.

Q. Why will AIG only allow me to cover up to 50% of my salary? I’m not sure this will be enough to cover my mortgage, bills and other outgoings each month.

A. This is a very common question. There are two reasons why insurers only allow you to cover a certain percentage of your income:

1) Insurers always want there to be an incentive to want to go back to work (i.e. your earnings will rise if you go back to work);

2) With personal income protection the monthly benefit paid out by the insurer is not currently taxable as income, which means that the amount you cover will be the net amount you receive (as such, it’s been agreed with HMRC that you cannot cover 100% of earnings).

You may want to look at other providers if you need to find an insurer that covers a high proportion of your income.

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Very professional and easy to deal with. Jake treated me like a human being and made me feel like a valued customer.
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Applied for an income protection plan and owing to medical condition had to make a few changes and Victoria from drewberry was really helpful
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I was having trouble finding a suitable income protection policy online and was unclear about what I should be looking for, so I contacted Drewberry. The process was very quick and straightforward. They called me and explained how this type of insurance works, and then went through series of questions about my circumstances to try and find the right cover for me. They came back to me the next day with several suitable options and emailed all the relevant information clearly laid out. Michael Barrow, the advisor I spoke to, was happy to explain things in detail and answer any questions I had. I would definitely recommend Drewberry as they took all the hassle out of a confusing search.
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