https://www.aiglife.co.uk/intermediaries/products/yourlife-plan/income-protection Individual Protection from AIG

Income Protection

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.

Why recommend income protection?

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.

Why choose AIG?

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:

  • More help getting back to work;
  • Support for parents who leave work to provide full-time care for their child who is ill or injured;
  • Help during the deferred period; and
  • Protection against over-insurance.

What we cover

AIG covers occupation classes 1, 2, and 3 and housepersons:

  • Own or suited occupation definitions for full-time workers;
  • Our suited occupation definition includes 12 months own occupation cover;
  • Maximum benefit of £12,500 per month (or 60% of first £25,000 of pre-tax annual income plus 50% of any pre-tax annual income exceeding £25,000, divided by 12); and
  • Five deferred periods available. The deferred period is waived on diagnosis with a terminal illness.

More help getting back to work

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.

Better support for parents

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.

Help during the deferred period

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:

  • Is incapacitated for longer than the deferred period they have chosen;
  • Is incapacitated and needs help paying for services to help them get back to work;
  • Returns to work but their incapacity means they work fewer hours or for a lower wage; or
  • Leaves work to provide full-time care for their child who is ill or injured.

For a full explanation, check the YourLife Plan Income Protection Cover Details

Over-insurance

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.

Flexible options

Features that make the policy more flexible when claiming

  • Parents can claim Carer’s Cover;
  • Help during deferred period;
  • No need to pay premiums while receiving benefit payments; and
  • We’ll waive the deferred period entirely if claiming for terminal illness

Setting up the policy

  • Single life only;
  • Waiver of premium is automatically included;
  • A max benefit of £150,000 pa;
  • Benefits can be level or increasing (in line with RPI up to 10%);
  • Maximum benefit of £12,500 per month (or 60% of first £25,000 of pre-tax annual income plus 50% of any pre-tax annual income exceeding £25,000, divided by 12); and
  • Deferred period of 4, 8, 13, 26 or 52 weeks.

Making changes to the policy

Your client can increase their benefits without further underwriting when they:

  • Marry or enter into a civil partnership; or
  • Have a child or legally adopt one; or
  • Increase their income as a result of a promotion or career change.

If necessary, they can also:

  • Change the term of the cover; Reduce the monthly benefit; Stop or restart annual increases; and Change how often and when a premium is paid.

Check the YourLife Plan Income Protection Cover Details for a full explanation of any limits to these changes.

Limits of the policy

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

Literature and support materials

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Income Protection Sales Aid

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Reasons why - AIG YourLife Plan / Start range (all options)

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YourLife Plan Income Protection Cover Details

Cover details document
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