Individual Protection from AIG

Jack Spencer

Ensure the self-employed are insured

Running a business is tough at the best of times. Especially when it’s your own company and a small business at that. A self-employed business owner might believe they can keep working no matter how sick they get. But with some illnesses, they may simply not have a choice.

Launched as a simple, affordable and essential personal protection product, there are also some circumstances where Key3 Critical Illness Insurance or Key3 Critial Illness with Life Insurance is ideal for business protection too. Here is a scenario that explains why Key3 could be the perfect solution for sole trading businesses. 

Jack Spencer (38) has always been an ambitious man and great lover of the outdoors. From a young age he would help his grandparents in both their garden and allotment, being fed years’ worth of knowledge on all things green and leafy as he grew up.  

Office life was never going to be for him so from the moment he left school Jack followed in his grandfather’s steps and began working as a gardener, growing his understanding and skillset, until finally becoming a well-known landscape gardener at companies in and around his local area.

Jack has been with his partner Robert Langley (46) for five years and together they have their own home, a cottage in the countryside with their two rescue dogs, Bruno and Frank.  As Robert is sat behind a computer screen most of his working day as an IT consultant, he too enjoys being outside when he can, especially taking their dogs for long walks every evening. If Jack isn’t working on a weekend, they try to venture out, always doing something different but usually ending up in a snug country pub, tucking into a good traditional pub meal with a glass of red to wash it all down.  

Having always worked for a company, Jack decided to take a big step in his career and became self-employed. With 20 years of experience in his vocation and many job requests coming in as his clientele grows, he feels confident that he will do well and enjoy a more flexible work life balance.

Jack and Robert have joint term assurance in place with AIG to cover their mortgage, and Robert is insured under his company scheme for critical illness. However, Jack was unsure what product would best suit his needs now he’s self-employed as he has no company benefits and is watching his outgoings more than ever.

Cancer, heart attack and stroke accounted for almost 80% of AIG’s paid adult claims2 in 2015 which highlights how common these illnesses are and why critical illness insurance is so important, particularly for people who are self-employed and have no sickness benefits.

A self-employed person would ideally have the most comprehensive critical illness insurance available but, like Jack, they could raise certain objections against doing so such as:

  • “I can’t afford it”,
  • “Money is tight”,
  • “I will keep working no matter how ill I get” or
  • “If I have to retire, I’ll just sell my business”.

This is not restricted to self-employed people but running a business and completing a tax return each year often makes them more aware of their expenditure than most people.

60% of private sector business are sole traders1, but on the whole are underinsured when it comes to Critical Illness Cover (CIC) - despite the impact a critical illness could have on them.

There is an affordable and sufficient solution available – Key3. Key3 Critical Illness Insurance pays a lump sum if the policy holder is diagnosed with cancer or suffers a heart attack or stroke. Key3 Critical Illness with Life Insurance pays a lump sum if the policy holder is diagnosed with cancer, suffers a heart attack or stroke, or if they die or are diagnosed with a terminal illness and have less than 12 months to live.

Jack’s financial adviser knew the importance of having critical illness but understood Jack’s financial budget which is why he suggested Key3 to him and provided some comparisons in price3.

Jack’s criteria:male, age 38, non-smoker with no health issues, a term of 30 years3.

Amount of cover AIG YourLife Plan Critical Illness with Term Assurance AIG Key3 Critical Illness Insurance
£100,000 £53.03p.m. £36.03p.m.
£150,000 £78.29p.m. £52.80p.m.
£200,000 £102.36p.m. £69.26p.m.


Due to Jack’s budget of around £50 per month, he chose to have £150,000 worth of Key3 standalone at £52.80. This is £25.49 cheaper than traditional critical illness and provides the cover he needs.

Just like our comprehensive critical illness, Key3 comes with access to our Claims Support Fund which can provide additional help for the person covered or their family if the person covered has a potentially valid claim. It may pay up to £300 for services such as physiotherapy, counselling or even the cost of taking taxis to attend hospital appointments or hospital car parking tickets.

It also provides access to the Best Doctors* second opinion medical service which can be used by the policyholder(s) and their immediate family. The insured person can also continue to use the Best Doctors service for three years after their claim has been paid*.

There are some additional considerations to be aware of if using Key3 Critical Illness Insurance as sole trader protection, so please speak to our Sales team on 0345 600 6829 before submitting an application. 

  1. Federation of Small Businesses, 2016.
  2.  AIG Claims Statistics 2015,
  3. Prices correct as at January 2017. Based on male, age 38 non-smoker. Comparison conducted on AIG Key3 Critical Illness Insurance vs AIG YourLife Plan Critical Illness with Term Assurance.
* Best Doctors is a non-contractual benefit and can be withdrawn at any time without notice. Best Doctors and the star-in-cross logo are registered trademarks of Best Doctors, inc. in the United States and other countries. Used with Permission
The Spencers are a fictional family. All names, characters, businesses, places, events and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead or actual events is purely coincidental.


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