AIG Income Protection Review [2024] Compare Quotes

Q: Who are AIG?

AIG (also known as American International Group ) are a multinational finance and insurance company who employ nearly 50,000 people. Established in 1919, and embracing international expansion early, AIG have expanded into a company who now serve customers in more than 80 different countries. Their UK branch, known as AIG Life Limited, work in the UK, Channel Islands, Isle of Man and Gibraltar. They have over 60 years of experience and around 8 million customers within the UK market. AIG Life have a 5 star rating for their Yourlife plan income protection, and 52% of customers rate them “ Excellent ” on Trustpilot .

Q: What does AIG income protection pay out for?

Covered Not covered Terminal illness Pre-existing illnesses Hospitalisation Unemployment Death Redundancy Incapacitation through an illness or injury (under AIG’s terms and conditions) Self-inflicted injuries If you’re signed off work by a medical professional Injuries caused by alcohol or drug abuse

AIG income protection UK

As a leading organisation both in the UK and overseas, AIG has become one of the world’s biggest income protection providers.

Income protection is a policy designed to pay a percentage of your income if you’re too ill or injured to work.

But how does AIG income protection insurance compare to its competitors?

This article will answer your queries and help you understand whether AIG income protection is right for you.

You can compare AIG income protection with other providers through Reassured.

Why not use the services of Reassured to compare AIG income protection with all the UK’s best income protection providers.

Their whole of market comparison service allows you to find the best policy to meet your specific needs, at the right price for your budget.

This AIG income protection review page includes:

Who are AIG? »
What is income protection insurance? »
Is it worth having income protection insurance? »
AIG income protection benefits »
AIG income protection policy conditions »
AIG group income protection »
How long does income protection insurance pay out for? »
What does AIG income protection pay out for?
How much income protection do you need? »
What impacts income protection? »
Smart Health »
How do I cancel my AIG policy? »
AIG income protection FAQs »

Compare AIG Income Protection Quotes »

Who are AIG?

AIG (also known as American International Group) are a multinational finance and insurance company who employ nearly 50,000 people.

Established in 1919, and embracing international expansion early, AIG have expanded into a company who now serve customers in more than 80 different countries.

Their UK branch, known as AIG Life Limited, work in the UK, Channel Islands, Isle of Man and Gibraltar. They have over 60 years of experience and around 8 million customers within the UK market.

AIG Life have a 5 star rating for their Yourlife plan income protection, and 52% of customers rate them “Excellent” on Trustpilot.

AIG income protection pays out up to 60% of your income

What is income protection insurance?

Income protection is a type of insurance designed to pay a monthly benefit to a policy holder who is either too injured or ill to work.

In this situation, a capped percentage of your monthly salary is paid out, helping replace lost earnings. Income protection policies can be short-term or long-term, depending on the type of policy, and the criteria you would like to cover.

An income protection policy has a deferral period which can last between 4 weeks and 12 months, but can vary depending on the provider. A deferral period is essentially the time you will wait between making a successful claim and receiving your first payment.

Is it worth having income protection insurance?

If you’re worried about an illness or injury preventing you from earning your monthly wage, then income protection can be an attractive policy.

Income protection is valuable to anyone working. However, it can be really beneficial to those who are self-employed and do not have traditional sick pay, as well as those without savings.

However, if you’re unsure how you would financially survive without your salary, then income protection is worth considering.

Income protection could help you to cover:

Accommodation payments - By covering your rent or your mortgage, income protection can help you keep up to date with your payments
To cover essential bills - Falling behind on council tax or utilities bills could result in you losing your home. Income protection could help to cover these costs until you’re back at work
To cover debts - If you have consolidation loans, a debt management schedule or outgoing payments on debts, income protection can help you maintain the required payments
Childcare - If you have children and you pay for nursery or additional education expenses, income protection could help to financially safeguard your children’s continued participation
Daily to monthly living expenses - Food, travel costs and any other necessities to help you or your family continue living could all be covered by income protection
Other - You may need an income to help your recovery, through physio or other medical costs. Or potentially to cover additional leisure expenses for you and your family. Regardless, income protection can be used in any way which will help secure you and your family’s stability

Reassured can discuss and compare all your available income protection options. They’re happy to discuss and answer any queries you may have.

AIG income protection has a multitude of benefits

Compare AIG Income Protection Insurance »

AIG income protection policy benefits

AIG’s income protection is known as a Yourlife plan and offer the following income protection benefits:

Policy benefits	What it does	Length/Amount
Guaranteed benefit	If your income fluctuates during the policy’s term, a sum assured can be guaranteed in your term	Up to £1,500
Free cover during underwriting	If you become ill or injured during the period where your premiums and level of risk are decided by the insurer, you will still be covered	Up to £25,000 per annum
Rehabilitation support	Helps your recovery, ensuring you can get healthier	Support recovery during and after the deferred period
Trauma benefit	Pays a sum of money if you suffer from either a life changing illness or injury that meets one of AIG’s definitions	6 months benefit amount, capped at £50,000
Hospitalisation benefit	Covers you if you’re incapacitated and have to spend more than 6 nights in hospital during the deferred period	£100 for each subsequent night during the deferred period, capped at 90 days
Family carer benefit	Covers your partner or child if they suffer from an illness/injury that affect their daily activities (under AIG terms and conditions)	After three months or incapacity, either £1500 or the guaranteed benefit (depending on which of these is lower
Death benefit	A sum assured if you pass away during the policy’s term	£10,000 - Subject to inheritance tax
Terminal illness	If you have been diagnosed with a condition leaving you with 12 months or less to live, you will receive an advanced payment	12 months of benefit amount (policy can be enhanced to avoid the deferred period)
Recuperation benefit	Helps to aid in your recovery	Capped at 3 months of your benefit amount
Proportionate benefit	Provides a portion of your benefit amount if you return to work mid-month.	Included

To ensure you have the cover that your personal circumstances require, it’s important to check AIG’s terms and conditions.

Alternatively, you can contact Reassured and the friendly team will be happy to walk you through any queries, or find you a no-obligation, fee-free quote.

AIG income protection policy conditions

AIG income protection includes the following terms and conditions:

Length of policy - Policies can be taken by UK, Channel Islands, Isle of Man and Gibraltar residents aged between 17 - 54 years old.

The length of a policy can be anywhere between 5 - 53 years and you can have a policy ongoing after 54 years old. However, the policy’s cover must end before your 70th birthday.

Deferred period - The income protection deferred period is the length chosen by you to determine the period between a successful claim and receiving your first claim.

AIG deferred periods are 4, 8, 13, 26 and 52 weeks.

Premiums - Premiums (the monthly payments you pay for the policy) are dependent on the above information, plus key factors about your personal circumstances, including your medical history, occupation, and smoking status.

Premiums are fixed for policies unless you amend your level of cover.

Types of cover - You can choose either a full payment term, or limited payment term policy with AIG.

Full payment terms cover every successful claim and monthly payment until you return to work. Limited payment terms pay successful claims for a maximum of 24 months and are a short-term income protection insurance.

More claims can be made within the policy’s term but only if you have been working for 26 weeks between claims.

The amount of cover - If you’re currently in paid work, you can take cover up to 60% of your pre-taxed income up to £30,000. If you earn between £30,000 - £100,000 annually, an additional 55% of your pre-taxed income within this amount is included, as well as 45% of your pre-tax annual income over £100,000.

This amount is divided by 12 to show the maximum amount you would be eligible for.

For example, if your annual income is £38,000, pre-taxed you'll be entitled to up to the following:

60% of £30,000 = £18,000
55% of £8,000 = £4,400
£18,000 + £4,400 = £22,400 divided by 12 = £1,866.66 per month maximum entitlement

The monthly benefit is capped at £20,833 for those in paid work and £1,667 per month for those who aren’t. If you’re working at least 16 hours a week when you make a successful claim, but you would usually earn more than £1,500 per month with the above calculation, then you will receive a guaranteed income protection of £1,500 per month regardless.

The monthly benefit is fixed for level term policies unless you amend your level of cover. For increasing cover, your monthly benefit can increase up to a maximum of 10% a year in line with RPI (Retail price index).

Reassured can help compare AIG income protection quotes, so why not get in contact?

AIG group income protection

AIG offer group income protection, designed to cover 3 or more people if someone is incapacitated due to illness or injury. This is primarily designed for businesses and their employees.

With this policy up to 80% of the employee’s income could be paid out, including employee pension contributions if a successful claim is made, and has a payment period which ranges from 2 years to when the policy ends.

Essentially, group income protection is aimed at businesses and those seeking personal income protection would not be applicable.

Group income protection is not something Reassured currently offer. However, we can compare AIG personal income protection policies.

Income protection through Reassured starts from 20p-a-day

How long does income protection insurance pay out for?

The length of your income protection is determined by the following:

Policy length, which can be between 5 - 53 years
Payment period and type of cover, which results in payments lasting either up to 24 months, or until the policy ends
If you’re no longer classified as incapacitated
If a terminal illness benefit is paid out, in which case the policy is terminated
If you stop paying your premiums or cancel your policy
If you pass away, in which case the policy is terminated

What does AIG income protection pay out for?

While there isn’t an exhaustive list of what AIG income protection insurance covers, the following are key aspects that are or aren’t covered:

Covered	Not covered
Terminal illness	Pre-existing illnesses
Hospitalisation	Unemployment
Death	Redundancy
Incapacitation through an illness or injury (under AIG’s terms and conditions)	Self-inflicted injuries
If you’re signed off work by a medical professional	Injuries caused by alcohol or drug abuse

How much income protection do you need?

There’s no universal answer for how much income protection someone needs or how much does income protection cost. The amount required depends on your personal situation and circumstances.

Ideally you want the highest monthly benefit amount for the most affordable premium.

When establishing how much cover you need you may wish to calculate the cost of your key financial commitments.

Income protection is commonly used to help with:

Mortgage/Rent - If you’re too incapacitated to work, would you be able to afford your monthly payments?

Utilities and council tax - These combined with other important bills also need to be paid and can also be a big portion of your monthly income.

Food and travel - Food is an essential both for survival and aiding your recovery. Meanwhile, you may not need to travel to work if you’re claiming income protection, but you may need to travel to hospitals, doctors, or other locations. Furthermore, you may also have a repayment plan on a vehicle - something which income protection can help cover.

Your family - If you have a partner or children, you need to ensure you have enough to also cover their needs - especially if you’re the main breadwinner. Your partner may also need to help with supporting your recovery and any children will still have life and education costs which require payments.

Savings and sick pay - If you have savings, you need to consider how long these would last if you couldn’t work. Adequate savings could either mean you can have a longer deferred period or not need as big a monthly benefit. Both could result in a lower premium cost. Sick pay is also worth considering, as if you’re covered for a set period, you can set a later deferred period on your income protection insurance. Self employed people may also benefit from this, due to the majority lacking traditional sick pay benefits.

Your recovery - While it’s difficult to determine the period it would take to get better, having enough money to cover medical costs, physio support, medication or to afford carers can help aid your recovery.

Your salary and budget - Under AIG’s income protection terms, you would be entitled to a percentage of your salary on a successful claim. However, if your current budget cannot cover the monthly premiums for your maximum allowance, it’s worth considering a lower amount.

How much AIG income protection insurance do you need?

Enter your monthly financial commitments to calculate the level of income protection cover you require.

Your total cover estimate

£ 0

Let us find your best quotes.

Compare AIG Income Protection Quotes »

What impacts income protection?

There are several factors that can impact your income protection cover and amount. These include:

Age - On average, the younger you are, the cheaper your income protection policy will be
Smoking status - On average, smokers pay more for their cover
Medical history - Any current or previous inflictions will be taken into consideration
Occupation - Jobs deemed a higher risk will require higher premium costs
Length of cover required - Short-term cover is, on average, cheaper than long-term cover over time

Smart Health

Smart Health is a non-contractual benefit included with AIG income protection policies. It’s offered through AIG by Teladoc Health and is designed to provide access to health and wellbeing experts 24 hours a day, 365 days a year.

It offers six services to both AIG policy holders, their partners, and their children (up to 21 years old). You can access this through a phone number and an active policy:

GP consultation - You can discuss any non-emergency health related issue with a UK registered GP at any time. General medical advice, sick notes, specialist referrals, issuing prescriptions (under AIG’s guidelines) and more is included
Expert case management - Designed to ensure you can get a second opinion on a diagnosis or help if you’re struggling to obtain a diagnosis. A GP case manager will be assigned to answer any queries you may have about treatment plans and assist with your recovery. This service primarily evaluates serious or complex cases, including cancers, neurological diseases and those that require surgery, among others
Health check - A personalised report tailored to your health goals, with recommendations on amendments needed to your diet and lifestyle. It can also provide information on available tests and screening programmes and help you form future healthy habits
Nutrition consultation - A team of specialists is available to answer any questions about either nutrition or diet. If you’re struggling to reach your nutrition goals, bespoke meal plans are available, as well as advice about weight loss, allergies and food intolerances, weight loss and more
Fitness programme - A programme based on your current health and lifestyle to help you improve your fitness. A 4 or 8 week plan, designed by sport coaches and nutritionists, can help you lose weight, improve your health and fitness and reach any goals you’re trying to achieve
Mental health support - This is a support service which provides professional help if you’re dealing with depression, anxiety, trauma, stress, or bereavements. A team of psychologists and psychotherapists provide confidential support and consultations remotely, meaning you can receive support in the comfort of your own home

How do I cancel my AIG policy?

If you take out income protection cover with AIG, you have the right to cancel through them at any time.

Within the first 30 days from when you receive your cover information, you can cancel directly with AIG. AIG will refund any premiums you have paid - providing no benefit has been claimed.

If you cancel after this period, your cancellation will take effect from the day before your next premium date. This also ensures that no additional premiums will be collected for the policy.

AIG will not refund any monthly premiums paid, though you may be entitled to a partial refund if paying through annual premiums.

AIG income protection FAQs

Does income protection cover redundancy?

No, income protection insurance for redundancy is not something AIG offers.

Is income protection taxable?

For UK residents, any income protection benefit paid is usually free from income tax and capital gains tax.

Those who receive a benefit while outside of the UK may be required to pay tax under that country’s laws and regulations.

In the UK, this is subject to law and regulation changes by the government, which AIG, or an income protection broker like Reassured, can't be held responsible for.

What is the maximum income protection benefit?

Your income protection benefit will be capped at 60% of the first £30,000 of your pre-taxed income, followed by 55% of pre-taxed income between £30,000 - £100,000 and 45% of pre-taxed income over £100,000.

Payments are capped at £20,833 per month for those who are employed for a minimum of 16 hours a week before a successful claim.

For those who were unemployed before taking a policy, the maximum amount of cover is £1,667 per month.

Can I have two income protection policies?

You can have as many income protection policies as you want. However, the income protection benefit will still be capped.

This means that regardless of how many policies you have, you will only get a maximum of 60% of your monthly income. Policies cannot be stacked to pay out more.

Is stress covered under income protection?

Stress on its own would not be covered under your income protection. However, any mental health issues or physical illnesses which have been caused by stress and is not a pre-existing condition has the potential to be covered - providing it’s within AIG’s terms and conditions.

Does income protection cover reduced hours?

If you have an incapacity which results in you being unable to work your full hours, you will still be entitled to income protection.

If you were entitled to over £1,500 per month income protection, based on your salary, but would now be calculated at receiving a lower amount due to being unable to work your full hours, you will either be entitled to £1,500 per month or your benefit amount, depending on which is greater.

If your hours are reduced not through an incapacity issue, then this is not covered.

Which is better life insurance or income protection?

Neither product is better than the other. The benefits of these policies are dependent on your personal circumstances and requirements. However, one may be more beneficial to your situation than the other.

You can contact Reassured for life insurance policy information and Reassured for additional income protection information.

We'll be able to answer any queries to help you decide which policy is best for your circumstances.

For more information read our dedicated article comparing income protection vs life insurance policies »

AIG income protection contact details

You can contact AIG through the following:

AIG phone number: 0345 600 6820
AIG email: enquiries@aiglife.co.uk
AIG address:
Customer Service
AIG Life Limited
PO Box 12010
Harlow
CM10 9LG
Monday - Thursday 08:30 - 20:00
Friday 08:30 - 17:30
Bank holidays excluded

AIG income protection quotes

Reassured offer a whole of market comparison service, meaning you can compare quotes from all the leading UK providers.

Using this service can ensure you find the best and most affordable policy for your situation. Reassured’s broker service is FCA-regulated, and any quotes given are fee-free, personalised and no obligation.

Quotes start from as little as 20p-a-day^‡. Get in touch with a friendly member of the team to start your journey today.

All information is taken from AIG’s website and the information contained is subject to change at any time by AIG. Information is correct as of 07 July 2022

Compare Income Protection Quotes »

Income protection insurance comparison

7.5 min

7 min

Use our income protection insurance calculator to work out…

Read now

Income protection for self-employed

7 min

Income protection for self-employed pays-out a tax-free…

Read now

Our customers love us

Very easy to understand and very quick

Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!

Mrs M Rushworth

Very professional and reassuring

Very professional and reassuring. Life insurance sorted in about 10 minutes.

Stephen Davies

very courteous and friendly

very courteous and friendly. Polite professional and empathic.

Stedroy Fenton

Another happy customer

Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.

Piotr Stepien

Really attentive during the call

Really attentive during the call, good clear guidance throughout. Well done.

Michael Reynolds

Amazing service

Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.

Sera Woolley

I made the right choice and now I feel…

I made the right choice and now I feel relieved that I did.

glyn

Really genuine kind and compassionate…

Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!

Katelia Merritt

I must say Jake took me through every…

I must say Jake took me through every step and was brilliant, recommend them anytime.

Allan Green

Very happy and everything explained…

Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.

Jenny Berry

We’re rated as 'Excellent' with 78,102 customer reviews

AIG income protection review

Is AIG the right income protection provider for you?