Many people insure the things they feel are valuable – their house, their possessions, maybe even their pets. But for most, the thing they value the utmost is their income. If an illness or injury prevents them from working, income protection could provide them with a monthly benefit of 60% of their first £25,000 of pre-tax annual income plus 50% of any pre-tax annual income exceeding £25,000 per annum divided by 12. This would then help them to pay their bills while they are too sick to work.
The core of any income protection policy is how an insurer defines incapacity - it may be according to their ability to do their own job or one like it, a job they are suited to by training or experience, or being unable to perform a list of basic activities (like not being able to walk more than 100m).
At AIG, we only ever use own or suited occupation definitions for full-time workers and the way we define them is broader than most – our suited definition includes own occupation cover for the first 12 months. And to make sure our cover really does meet people’s real life working needs, we also provide:
AIG covers occupation classes 1, 2, and 3 and housepersons:
Most people want to get back to work, but waiting lists or treatment costs can hold them back. Your client can claim an additional ‘Recuperation Benefit’ worth up to three times their monthly benefit, to be used for accessing advice or services like physiotherapy to help them get back to work.
If your client does return to work, but for a lower salary or fewer hours, we’ll top up their earnings to match their monthly benefit.
If your client leaves work because their child needs full-time care due to illness or injury, most insurers won’t pay out. With AIG, your client can claim up to six months’ worth of benefits.
The deferred period can vary between one and 12 months – that can be a long time to wait. With AIG, your client can use Best Doctors, and claim Recuperation Benefit . We’ll also waive the deferred period entirely if they’re making a terminal illness claim.
In summary, we’ll pay out if your client:
For a full explanation, check the YourLife Plan Income Protection Cover Details
Features that make the policy more flexible when claiming
|Min/max age at entry||17-54|
|Max age covered||69|
|Max benefit||£150,000 pa / £12,500 pm|
|Max benefit without financial underwriting||£50,000 per year / £4,166 pm|
Your client can increase their benefits without further underwriting when they:
If necessary, they can also:
Check the YourLife Plan Income Protection Cover Details for a full explanation of any limits to these changes.
Sometimes people forget to reduce their income protection policy if their salary falls, which can leave them over-insured and means they’ve paid for an amount of cover they cannot fully receive.
If we find out your client is over-insured when they claim, we’ll refund any over-payments through a premium holiday when they return to work.