Individual Protection from AIG
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Critical illness with Term Assurance

Why recommend critical illness cover? Critical illness cover helps your clients if they want to make sure they have financial help for them and their family in a wider range of circumstances, covering not just death or terminal illness, but also critical illness.

Depending on how much your client wants to insure, the payout can allow them to cover their family’s financial needs, pursue a less stressful lifestyle while they recover, secure their home or simply help to put their financial affairs in order in times of adversity.

Why choose AIG?

AIG’s philosophy is to offer the broadest cover we can, while making sure it stays affordable. The things we cover are those that are most likely to threaten a person’s lifestyle or livelihood. In total, Critical Illness with Term Assurance covers 80 conditions and operations, and we’ve made sure the ‘big four’ conditions – cancer, heart attack, multiple sclerosis and stroke - along with another 13 of the most critical conditions, are covered by definitions that go beyond the ABI’s standard.

For a full list of the conditions we cover and our definitions, please see our guide to critical illness cover.

More cover for children

Most people don’t realise that children are actually one of the most common reasons for people needing to claim. That’s why we automatically cover any children your client has now or in the future – as standard. Our enhanced children’s critical illness cover allows a parent to claim up to 50% of the value of their policy (up to a maximum of £25,000) if their child is diagnosed with one of the critical illnesses we cover. We also include seven additional child-specific conditions such as Diabetes Type 1, Down’s syndrome or spina bifida. We also double the total payment (up to a maximum of £50,000) if curative or stabilising treatment is only available overseas and pay £5,000 as a child death benefit if your client’s child dies during the term of the cover.

Make sure the grey areas are covered too

Some conditions warrant financial support in the early stages. We now cover thirty early stages of the most critical conditions, including surgery to help manage risk of heart attack, stroke, or certain types of cancer.

For extra protection, your client can include the following add-on options (for a small extra amount) to make sure their insurance keeps going should they become too ill to work:

  • Total Disability is unique to AIG. It can be added to your client’s critical illness policy to provide an element of income protection (if they’re too ill to work), which could pay up to 50% of their pre-tax monthly income before they became incapacitated*. It’s not as comprehensive as income protection, but it’s not as expensive either.
  • Total Permanent Disability can be added to critical illness when your client first takes out the cover to provide protection in the event of them becoming unable to work ever again, in which case their policy would pay out the full value of the policy
  • Waiver of Premium: if your client were to fall ill for a long time and be unable to work, we could cover the cost of their premiums while they are receiving payments from us.

*If the disability then becomes permanent, we will pay the remaining amount of the policy value.

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YourLife Plan Critical Illness With Term Assurance

Key Facts document
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Reasons why - AIG YourLife Plan / Low Start (all options)

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Setting up the policy

When setting up the policy, you can choose:

  • Single or joint life;
  • Whether or not to include Total Disability or Total Permanent Disability cover;
  • Whether or not to include Waiver of Premium; and
  • A sum assured that is level, increasing (5% per year) or decreasing (using interest rates of 5%, 6%, 7%, 8%, 10%, 11%, 13% or 15% per year).

Limits of the policy

Min/max age at entry 17-75
Max age covered 85
Min/max term 3-50
Max benefit No maximum
Max benefit before we ask financial questions £500,000
You can also choose to add waiver of premium to cover costs during working life if the person covered is unable to work:
Min/max age at entry 54
Max age covered 69

Check the YourLife Plan Critical Illness with Term Assurance Cover Details for a full explanation of Waiver of Premium.

Making changes to the policy

Your client can increase their sum assured without further underwriting when they:

  • Marry or enter into a civil partnership; or
  • Have a child or legally adopt one; or
  • Increase the amount of their mortgage to buy a new home or to pay for improvements.

If necessary, they can also:

  • Change the term of the cover;
  • Reduce the sum assured;
  • Stop or restart annual increases;
  • Change from a decreasing to a level lump sum;
  • Add another person;
  • Split a joint life policy; and
  • Change how often and when a premium is paid.

Check the YourLife Plan Critical Illness with Term Assurance Cover Details for a full explanation of any limits to these changes.

Critical Illness with Term Assurance Sales Aid

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Low Start

Offers the same great life insurance and critical illness options as YourLife Plan, but at a lower initial cost

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