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
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
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
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.
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
“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.