AIG checks out of ‘conditions race’


Monday 19 October 2020


AIG Life Limited has today unveiled a different approach to critical illness (CI) insurance, which throws out the idea that every condition it pays on needs to be listed.

Offering a new standard in CI, the cover introduces product flexibility for all budgets, value with unlimited Smart Health services for all the family and makes cover simpler with fairer customer outcomes by consolidating conditions.

In addition to including umbrella headings the industry is now familiar with, AIG Life has gone a step further. It has grouped over 20 conditions under four broad headings. These groups focus on specific surgeries or the impact on daily life for customers, not the name of the illness. If the impact is the same, the customer will be covered – whatever the name of the condition. The headings are:

  • Degenerative neurological disorder
  • Reduced heart function
  • Surgery to the heart, aorta or pulmonary artery
  • Surgery via the skull


'These changes reduce condition numbers and represent a step change in CI market simplification, whilst enhancing the prospect of a successful claim', said Sue Helmont, Marketing Director at AIG Life.


The MSA Trust, which represents over 3,000 people living with multiple system atrophy in the UK, has been lobbying the protection industry for changes to critical illness insurance. It has welcomed AIG Life’s approach to levelling the playing field for all degenerative neurological disorders.

'Congratulations to AIG for leading the way and recognising a pressing need to simplify critical illness cover. A move away from an arbitrary list of conditions is a much fairer system for people and more insurers should be thinking as AIG has,' said Karen Walker, Chief Executive of the MSA Trust.

'This innovative approach will give many more people the confidence that if they have a rare and terminal progressive neurological condition, like multiple system atrophy, they will in future be able to claim on their critical illness insurance,' she added.


Providers and advisers alike have set much store over recent years in the number of conditions policies incorporated, often referred to as the ‘conditions race’. It resulted in longer lists of medical jargon to demonstrate comprehensive product coverage but also increased unwanted complexity.

'AIG Life’s philosophy is simple' added Helmont. 'Our aim is to deliver fairer customer outcomes. First and foremost, each condition we include must benefit the customer and because our new grouped conditions are based on impact not the cause, our cover has broadened. It also means advisers can be confident that cover keeps pace with new medical developments and won’t diminish over time.'

Term Assurance with Critical Illness Choices offers a core of term assurance and critical illness cover. The customer can then choose to add Enhanced Cover, which also pays on a wider range of conditions including pregnancy complications, and add Waiver of Premium and/or Total Permanent Disability if they wish.

Whatever cover the customer builds, their AIG Life Term Assurance with Critical Illness Choices comes with Smart Health by AIG – the award-winning on-demand health and wellbeing service – as standard for every policyholder, their partner and children and at no additional cost.

Child cover
Children’s Cover, designed specifically with kids in mind, can be added or removed at any time too, explained Tim Lewis, Propositions Manager at AIG Life. For only £7.50 extra, it includes critical illness cover worth up to £50,000, hospitalisation benefit, and, unique to AIG Life’s insurance, cover for birth defects is also included.

If the child is unable to receive effective treatment for the condition in the UK and a prescribed treatment is available overseas, the cover amount will be doubled.

'Whether it’s sneezes, tummy aches, or something more serious, our children’s critical illness cover, along with Smart Health’s every day services, can help families every step of the way,' said Lewis.


To help financial advisers have a conversation with clients about critical illness insurance, AIG Life has produced an animated video.