About AIG

AIG – American International Group, Inc – is a global finance and insurance company serving customers in over 80 countries, with roots tracing back to 1919. AIG Life Limited is the company’s UK personal protection arm, offering products like life insurance and income protection. It focuses on making insurance as easy and accessible as possible for those with a protection need in the UK.


AIG income protection policy features

If you buy your income protection policy through AIG, your policy is likely to come with the features outlined below. Here we'll explain what the feature is, what it means for you, and how it compares to other insurers on the market.

Back-to-work benefit If you become able to work while making an income protection claim, but can only go back part time (or to a different job with a lower salary), you’ll continue to receive a proportion of your income protection benefit. The idea is to make up for a potential income shortfall while you recover. AIG’s back-to-work benefit is in line with other insurers in the market, offering a similar proportion for a similar amount of time. This is a handy benefit to have, as it gives you some flexibility and security as you make your return to work.
Rehabilitation Access to rehabilitation services to help you get back to work more quickly. This could include physiotherapy, counselling, or any other service/procedure that might help speed up your recovery. AIG’s rehabilitation benefit is good – in line with other insurers who offer this feature. Many insurers don't offer this feature at all.
Benefit guarantee Your income protection benefit will never fall below £1,500/month – so long as you bought at least that amount of cover when you took out your policy. You normally need to be working a minimum number of hours to qualify for this benefit. AIG’s benefit guarantee on income protection policies is good. The amount is on par with other insurers who offer this benefit. Meanwhile, other insurers offer lower benefit guarantee amounts, or don’t offer the feature at all.
Death benefit If you die during the term of your income protection policy, your family will receive a £10,000 lump sum. Some insurers don’t offer death benefit at all, so this is a good feature to have on your income protection policy – and the amount paid out by AIG is above average among those that do offer this feature (some insurers pay out less).
Family carer benefit You’ll be able to make an income protection claim if your partner or child falls seriously ill for at least 3 consecutive months. You’ll be paid your monthly benefit or £1,500 (whichever is lower). Again, many insurers don’t offer family carer benefit, so this is a good feature to have on your income protection policy. The amount paid out by AIG is on par with other insurers who offer this feature.
Guaranteed insurability You’ll have the opportunity to increase your income protection cover after certain life changes. In an AIG policy, this includes:

  • Getting married or entering a civil partnership
  • Becoming a parent
  • Getting a significant pay rise
  • Taking out a new mortgage
  • Increasing your existing mortgage amount
  • Increasing your existing mortgage term
For the life changes it covers, AIG’s guaranteed insurability feature is good. It offers a decent amount of flexibility, allowing you to increase your cover by up to 100% (though as with other insurers, there's usually a cap placed on the total amount of cover you can increase to). Some other insurers offer less flexible versions of this feature, don’t offer it for these life changes, or don’t offer it all.

Bear in mind that some insurers allow you to use guaranteed insurability simply to review your cover at regular intervals (not just after a particular life event). AIG doesn't allow you to do this.
Hospitalisation benefit Get £100 per night if you are hospitalised for any reason during the waiting period of a claim. This benefit is usually subject to a minimum and maximum number of consecutive nights spent in hospital. Again, some insurers don’t offer hospitalisation benefit at all, so this is a good feature to have on your income protection policy. The amount paid out by AIG is on par with other insurers who offer this feature.
Trauma benefit If you experience trauma, you’ll get paid a lump sum of 6x your monthly benefit or £50,000 – whichever is lower. This usually includes blindness, deafness or the loss of a limb, but it's always best to check your policy’s list. Not many insurers offer this feature, but AIG will pay out a lump sum if you experience certain traumatic conditions. This benefit provides a useful financial cushion while you recover or adjust to your condition.
Waiver of premium Most income protection policies come with this handy add-on that means you won't keep paying your monthly premiums if you're off work for medical reasons. You usually need to be off for a certain amount of time before you can claim this benefit. AIG’s waiver of premium benefit is in line with other insurers in the market. Having this benefit gives you peace of mind in case you can’t work for health reasons.

AIG income protection extra policy benefits

AIG income protection policies also come with a number of extra benefits, outlined below. These features are what's known as ‘non-contractual’ – meaning they’re not related to the contractual conditions of your own policy, and are often provided by a third party. Everyone is eligible for them (though they’re usually only made available if you buy your AIG policy through an adviser), but they may be subject to change in the future.

Best Doctors® This service entitles you and your family to a second medical opinion from a specialist if you receive a diagnosis.
Smart Health A healthcare service that gives AIG customers access to 24/7 virtual GP appointments; the Best Doctors® service described above; mental health support; online health checks; nutritionist consultations; and an online fitness programme.
Winston’s Wish A child bereavement service that supports children who’ve lost a parent or sibling, including a free national helpline, face-to-face support, and online resources.

AIG income protection prices

The following prices are based on:

  • Healthy 25-year old male or female office worker
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £29 £46
26 weeks £28 £43
Short-term 13 weeks £11 £17
26 weeks £10 £14
  • Healthy 25-year old male or female plumber
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £43 £85
26 weeks £37 £70
Short-term 13 weeks £16 £25
26 weeks £12 £21
  • Healthy 35-year old male or female office worker
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £41 £61
26 weeks £40 £48
Short-term 13 weeks £15 £21
26 weeks £13 £16
  • Healthy 35-year old male or female plumber
  • £1,500 of level income protection cover
Product Waiting period Non-smoker Smoker
Long-term 13 weeks £63 £114
26 weeks £58 £99
Short-term 13 weeks £22 £36
26 weeks £20 £29

Prices based on: AIG YourLife Plan Income Protection
Quoted on: 6/03/2020


It’s important to make an informed decision when buying income protection – which is where Anorak can help. We scan all the major insurers to match you to the products most suitable for you, based on your unique needs. We give you peace of mind about who to go with (especially if your most suitable policy is from an insurer you’ve not used before).
What is income protection?
An insurance policy that pays a monthly amount if you can't work for any medical reason. It's designed to replace part of your missing income, so you'll always be able to cover the essentials, even if lose your income because of an illness or injury.
What does income protection cover?
An income protection policy covers you if you're unable to work and lose your income for medical reasons. This includes any illness or injury, physical or mental, that leads to you being signed off work by a medical professional.
What doesn't income protection cover?
Income protection won't cover you if you're not working for anything other than a medical reason – like redundancy or resignation. You won't be able to claim on your income protection unless you're signed off work by a medical professional.
How much does income protection cost?
The cost of cover is different per person because it depends on how much cover you buy, how quickly you'd need the policy to start paying out, and how much of a risk you are to insure (based on your age, health and lifestyle).
Will my income protection pay out?
Yes, if you meet what's known as your insurer's 'definition of incapacity' – in other words, you meet their criteria for being unable to work. This definition is based, among other things, on the job you do, and you can read it before buying the policy.

This review is intended for informative purposes only and does not constitute advice.