Customer Q&As

Support for customers from AIG

We want to make sure that you have all the information you need, whether it comes to your insurance policy or keeping yourself safe and well.

On this page, we’ve answered a number of frequently asked questions. But don’t hesitate to get in touch with our team if there’s anything we can do to help you.

Premium deferral

Our policies, as standard, offer a 30-day deferral period. This means if a customer is unable to make a payment on time, provided they can make payment by the time their next premium is due, then their policy will remain inforce and unaffected by the late payment.

This could mean, however, that a customer ends up paying a double premium next time round. As an example, a customer is unable to pay their £50 premium due 1st June so requests a deferral for up to 30 days. This means, on the 1st July, we will collect both the missed June premium and the July premium now due – collecting £100 in total.

Customers wishing to request a premium deferral should get in touch with our customer service team. Our contact number is 0345 600 6820, and lines are open Monday-Thursday from 9.00am – 6.00pm, or Friday 9.00am – 5.30pm, except UK bank holidays.

A premium deferral can be requested at any time throughout the duration of the policy and no proof of financial hardship is required.

Mid-term alterations

Many of our products offer customers the option to permanently reduce their sum assured and/or term of their cover, which will reduce the overall cost. These options, if available, are built into the cover and offer the flexibility to amend the level and term of the cover to suit changing needs and affordability.

If the flexible policy request or a premium deferral is not suitable for you, these options may meet your needs. To see if these options are available to you and what they entail, please refer to your policy pack or get in touch with our customers services team.

Flexible policy request

Our flexible policy request enables individual protection customers to reduce their premium for six months and continue to be insured, but at a lower level of cover. At the end of the six-month period, the premium, and sum assured or monthly benefit, will automatically return to the previous levels immediately prior to this change being made, without underwriting or completion of any medical questions. It means our customers can reduce their monthly outgoings and remain covered for an extended period while they’re experiencing financial hardship.

Why are you doing this?

We’re receiving calls from customers facing financial hardship, who are looking for ways to reduce their monthly outgoings. Whilst our policies offer a 30-day deferral period as standard, in the current environment this may not benefit all customers that are experiencing temporary financial difficulties. The policy flexibility we’re offering enables customers to request a reduction to their premium for six months. We want to provide flexibility for an extended amount of time that could reasonably make a difference for our customers given the uncertainty created by the coronavirus pandemic, and we’re conscious that our standard 30-day deferral period may not be enough to alleviate the financial hardship customers could be facing.

How long can I reduce my premiums for?

Monthly premiums can be reduced for six months, providing the customer self-certifies financial hardship and meets our terms and conditions.

Who is eligible?

Customers who have an individual life insurance, critical illness or income protection policy, or a business protection policy and have paid at least one premium, and who are currently facing financial hardship due to the coronavirus pandemic may be eligible to reduce their premium for six months.

Customers who have purchased an AIG policy through one of our partners are also eligible, excluding those who have purchased a policy through Habito, British Seniors, YuLife and PAX Life.

Please contact us or see our terms and conditions for more information.

Is this just for customers who have insurance to cover their mortgage?

No. We’re receiving calls from customers facing financial hardship and looking for ways to reduce their monthly outgoings. The flexible policy request also applies to customers with critical illness or income protection policy’s, or a business protection policy and doesn’t have to be linked to a mortgage.

How do I know how much to reduce my cover by?

AIG are able to provide generic information on the options available to customers at this time and provide quotations on revised premiums or benefits. We’re not, however, able to advise customers about how much they can reduce their cover by. For advice, customers should refer back to their original selling adviser, or seek independent financial advice.

What is the minimum premium I can pay?

Typically, five pounds is the minimum premium most customers can pay. For some customers, it will be the lowest premium possible that does not breach the minimum sum assured limits for the specific product they have with us. Customers can ring us to discuss their individual needs. Our contact number is 0345 600 6820, and lines are open Monday-Thursday from 9.00am – 6.00pm, or Friday 9.00am – 5.30pm, except UK bank holidays.

Is there a charge for reducing my premium?

No. There is no charge for making use of this policy flexibility.

I want to reduce my premium, what do I do?

Customers should get in touch with our customer service team. Our contact number is 0345 600 6820, and lines are open Monday-Thursday from 9.00am – 6.00pm, or Friday 9.00am – 5.30pm, except UK bank holidays.

It’s important that customers speak to us so that we can explain in full how the lower monthly premium affects their sum assured or monthly benefit and any claim made during the six months. We’ll also explain what they need to do next.

It's also possible to apply online for a flexible policy request. Please complete the flexible policy request form, and return it by email to enquiries@aiglife.co.uk.

Before making a request online, it's essential that you read the associated terms and conditions, which provide all the important information you need to know

Do you require any evidence to support financial hardship before you will allow me to reduce my premium?

The premium flexibility is to help customers who are facing unexpected financial hardship. To be eligible for a premium reduction, a customer must be able to answer yes to at least one of the following questions.

For personal protection customers:

Because of, or due to, the coronavirus pandemic;

  • Has your income reduced?
  • Has your spouse or partner had a reduction in income?
  • Are you claiming Jobseekers Allowance, Employment and Support Allowance or Universal Credit; or in the process of claiming?
  • Do you live in rented accommodation and have stopped paying rent or are you claiming a mortgage payment holiday?

For business protection customers:

Because of, or due to, the coronavirus pandemic;

  • Has your business income reduced?
Can I lower my premium if I am still working?

Yes. Provided customers can self-certify financial hardship by answering yes to one of the four personal protection related questions above, they may be eligible for a premium reduction.

I have business protection insurance with you, can I lower my premiums?

Yes. Provided customers can self-certify financial hardship by answering yes to the business protection related question above, they may be eligible for a premium reduction.

Do I have to provide any documentation before you will reduce my premium?

No. When customers telephone and speak to us, they’ll be asked to self-certify financial hardship and to agree to the list of supplemental terms and conditions linked to this flexible policy option, including their understanding that their sum assured or monthly benefit will be decreasing.

Do I have to provide evidence of financial hardship each month for six months?

No. Customer self-certification as to financial hardship is required at outset only.

When will the premium/sum assured change from?

Once we’ve agreed the request, the sum assured or monthly benefit, and premium will change from the date the next premium is due, provided we have ten days to process the change and amend the direct debit. We’ll email customers with confirmation that the request has been accepted, together with the premium and monthly benefit, which should be kept with Cover Details in case there is a need to claim. After six months, the sum assured or monthly benefit, and their premium will return back to the levels they were immediately prior to effecting the flexible option under their policy.

I’m already on the minimum premium for my cover, what can I do?

We know that some of our customers already pay the minimum premium and we regret that we cannot offer a further reduction. The premium does still include unlimited access, for the policyholder and their family, to our 24/7 virtual GP service as well as the five other services of Smart Health from AIG Life.

My sum assured is linked to my mortgage debt. What can I do?

Customers can reduce their monthly insurance premium for a maximum of six months. However, this means that the mortgage loan they previously protected may not be covered in full during this time. The premium and sum assured or monthly benefit will automatically return back to the previous levels immediately prior to the change being made at the end of the six months.

For advice on the implications of reducing their premium, customers should refer back to their original selling adviser, or seek independent financial advice.

Can I reduce the cover/premium more than once?

The policy flexibility we are offering only allows customers to reduce cover once, and then increase again once.

Can I change my mind after I’ve spoken to you?

Yes. Customers have the right to change their mind within 14 days after receipt of the confirmation that the flexible policy request has been implemented. The easiest way to do this is to call us on 0345 600 6820, and lines are open Monday-Thursday from 9.00am – 6.00pm, or Friday 9.00am – 5.30pm, except UK bank holidays.

Do I have to pay back premiums at the end?

No. The sum assured or monthly benefit reduces while the premium levels are lower so there is nothing to repay. This differs from our standard 30-day deferral options, whereby any missed premiums that have been deferred would need to be paid back.

Can I keep a lower premium level at the end of six months?

Yes. If customers decide they want to pay a lower premium at the end of six months then they should call us to make this change. They can decide the lower premium they want to pay (this could be more than the minimum they’ve been paying) and we will adjust the sum assured or monthly benefit to their new level of cover.

Is there a closing date for requests to be made?

Customers can take advantage of the flexibility any time until, and including, 31st March 2022. Requests cannot be made on or after 1st April 2022. AIG has the right to withdraw the flexible policy requests option at any time.

How will I know when my premium is going back up?

Premiums will automatically go back up at the end of the six months. We will contact customers two to four weeks in advance to let them know.

Can I choose a different premium level/sum assured at the end of the six months?

Yes. At the end of six months, a customer’s premium, and sum assured or monthly benefit, will automatically return to the levels they were immediately prior to effecting the flexible option under their policy, unless they notify us otherwise. They can choose an alternate lower premium/sum assured/monthly benefit at that time which will then become their new cover. They can also request to increase the sum assured at the end of six months. This will be treated like a new application and may require further information including a doctor’s report.

What if I want to increase the sum insured or monthly benefit back before the end of six months?

Customers can increase back to the original sum insured or monthly benefit, or anything in between, before the end of the six month period. This will require the customer to answer some health questions to confirm their health has not changed.

What if I need to declare my health has changed?

If a customer’s health has changed during the six months, the sum assured or monthly benefit and premium will be retained at the lower level until the automatic increase at the end of the six month period.

What if I need to claim during the six months my cover/premium is lower?

For life insurance and critical illness claims, the amount payable is dependent on the sum assured at the date of the event (death or critical illness). If a claim is made whilst a customer is paying a reduced premium, the amount paid out will be based on the reduced sum assured.

For family income benefit, if a claim is agreed, it’ll be paid out at the lower monthly benefit agreed for the entirety of the claim, not just the period whilst premiums are reduced.

For income protection, the monthly benefit will be reduced for claims resulting from incapacity occurring during the six months, and will continue at that level for the total duration of the claim. If the six month period ends before the end of the deferred period, the premium will return to the amount it was before the six month period - but the benefit for the claim made will be at the reduced amount.

Individual Protection Q&As

We know many of you will have questions about your insurance. Here we answer some of your questions about your insurance policy:

  • Income protection frequently asked questions
  • Life and critical illness frequently asked questions

For the latest information about coronavirus we encourage you to visit the government’s official website here.

Income protection frequently asked questions

Are you accepting new applications for income protection insurance?

Yes, AIG remains open for business and we continue to help meet the needs of customers with both in-force and new business. A customer can apply for income protection in the UK. When they do, they should answer all application questions honestly and accurately, to the best of their knowledge and belief.

Can I claim on my income protection policy if I’m self-isolating or quarantined?

Income protection is paid subject to the illness continuing beyond our defined deferred (waiting) period – which is a minimum of 4 weeks but can be up to 52 weeks. If after a period of quarantine an illness develops and goes beyond the deferred (waiting) period, we will consider a claim. All claims will be based on whether you meet the definition of disability in your policy. We would not expect coronavirus to be an extended illness in the vast majority of cases.

Can I claim on my income protection policy if I contract coronavirus and can’t go to work?

A diagnosis of coronavirus will be considered under an income protection policy, if the symptoms mean you’re unable to work. AIG policies are written with a minimum deferred (waiting) period of four weeks but payments can be deferred up to one year after you stop work depending on the terms of your policy. Payments are also dependent on you satisfying occupation definitions specific to your policy wording.

Will you pay out if someone has not contracted coronavirus but for whatever reason, they’re not currently working (e.g. due to temporary or permanent closure of a business)?

No. Income protection policies pay out when you’re unable to work due to illness. Your income protection insurance with AIG is not a form of accident, sickness and unemployment benefit, which typically pays if a person is made redundant.

What should I do if I can’t afford my insurance because I’ve lost my job?

Customers have the option to reduce their premium for six months and continue to be insured, but at a lower level of cover via a Flexible Policy Request – see more information at the top of this page under ‘Flexible Policy Request Q&As’.

Will new policies have coronavirus exclusions?

We have no plans to introduce exclusions related to coronavirus and no plans to stop customers applying for income protection at this time.

Life and critical illness frequently asked questions

Will you insure someone who has contracted coronavirus or is suffering from associated symptoms?

If a new customer, who has contracted coronavirus or had symptoms suggestive of coronavirus applies to AIG to buy insurance we would be unable to offer cover until one month after symptoms have resolved.

Is coronavirus considered a critical illness?

No. The virus is not a named critical illness and therefore a diagnosis of coronavirus would not be a valid reason for claim under our Critical Illness policy. However, a claim may be possible for the effects of severe coronavirus if they fall under one of the other definitions.

Are you introducing any exclusions related to coronavirus?

AIG has no plans to introduce exclusions related to coronavirus on its UK policies and have no plans to stop customers applying for life insurance or critical illness insurance.

What should I do if I can’t afford my insurance because I’ve lost my job?

Customers have the option to reduce their premium for six months and continue to be insured, but at a lower level of cover via a Flexible Policy Request – see more information at the top of this page under ‘Flexible Policy Request Q&As’.