UK life insurer AIG Life Limited has unveiled changes that allow customers struggling with the cost of living to temporarily reduce protection insurance premiums. AIG introduced the flexible policy option early in the pandemic to help customers who were facing financial uncertainty.
Under COVID policy flex, customers could request that their premium, sum assured or benefit be reduced for six months by self-certifying that they were struggling financially under coronavirus restrictions and provided their lower insurance cost was still above AIG’s minimum levels for the cover. AIG has decided this support should carry on given the current economic conditions.
It’s open to any individual or business protection customer who needs financial support. There’s no evidence of financial hardship required and customers will not be asked to pay back the difference in payments when their premiums return to normal.
Debbie Bolton, Chief Underwriter at AIG Life, said it means customers, businesses and families who are concerned about how to meet their bills can request help and stay insured while they review their finances in the coming months.
“COVID restrictions have been lifted but as a nation we’re facing new financial challenges – from energy price hikes, rising interest rates or other cost of living increases. At the same time, we understand the valuable role that protection insurance plays in people’s lives and how important it is that they hold onto their cover. If something were to happen to them and they no longer have it in place, the financial implications could be much worse for their families and businesses.
“Our policy flex option has already helped other customers in need of support and we want to help ease the pressure now. If people are feeling the pinch or have money worries, we’d ask that they get in touch with AIG Life and talk to us about how we can help.”
Helping people stay insured
Since its introduction in April 2020, AIG’s flexible policy option has already helped over 500 people who were struggling financially:
· 85% continued to be insured after their flexible option ended
· 73% reverted to their original premiums (and benefit) after the six months
· 11% stayed insured and kept their reduced insurance amount once the flex period ended, and
· 1% used a mid-term adjustment to change their benefit amount and premium.
By helping customers to continue to be insured, it means they and their families also continue to have access to all of AIG Life’s support services, including 24/7 telehealth service Smart Health by AIG.