AIG Life Insurance Review – Forbes Advisor UK

Who are AIG?

Based in New York and listed on the New York Stock Exchange, American International Group (AIG) is a century-old insurance company serving more than 80 countries. Its UK life insurance arm, AIG Life Limited, operates in the UK, Channel Islands, Isle of Man and Gibraltar.

As well as selling life insurance products for individuals, families and businesses under the AIG Life brand, the company is the name behind the life insurance business of Ageas, as well as travel insurer Direct Travel and Direct Car Excess Insurance.

AIG Life Limited is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

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What types of life insurance policies does AIG offer?

AIG offers the following types of life insurance:

  • All the life – who pays no matter when you die
  • Level term – where the potential payout remains the same regardless of when a claim is made, as long as it is within the specified time
  • Decreasing term – when the potential payout declines over the term of the policy, based on outstanding debt that you are gradually paying off, such as a principal and interest repayment mortgage
  • Ascending term – where the potential amount paid out increases by a fixed amount each year over the term to account for increases in the rate of inflation
  • Over 50 years – people in this age bracket are guaranteed to be accepted as insured
  • Instant life – there are fewer questions to answer during the application process and you will receive an immediate decision on whether you will be covered.

It also offers:

  • Family insurance benefit – such as a term insurance policy (see above) which pays an agreed monthly amount from the time of death until the end of the initial term
  • Critical illness cover – which pays a non-taxable sum in the event of a diagnosis of serious illness or injury
  • “Beginning of Life” – AIG’s policy that helps you get covered on a lower budget, but could potentially cost more than typical coverage.

How much life insurance do I need?

The amount of life insurance you need will depend on your financial situation.

When calculating the amount of coverage you need, it is important to consider your income, financial commitments and obligations, how long your dependents will need financial support, and your savings and of your investments.

You’ll need to consider your mortgage balance, other debts, and bills and expenses.

To help you, our life insurance calculator will walk you through the process of determining how much coverage you need in three simple steps.

How much does life insurance cost?

Life insurance premiums can start from as little as £5 per month. The specific amount you pay will depend on a number of factors, including the type of policy, the amount of cover you need, your occupation, medical condition and lifestyle.

The younger and healthier you are, the less you will generally have to pay.

To learn more about how it works, read our guide to the cost of life insurance.

Is AIG a good life insurer?

According to the latest Fairer Finance rankings, AIG’s life insurance offering comes with a 69% customer experience ranking. It scores well for claims processing (87.37%), but less well for claims settlement rates (68.50%) and transparency (50.63%).

On the Trustpilot review platform, AIG Life Limited scores 2.7 out of five stars. Customers praise the service provided and praise its benefits, but negative comments relate to lengthy claims processes and rejected claims.

AIG paid 99% of life insurance claims, 97% of terminal illness claims and 95% of critical illness claims in 2020, for a total of £115.3m paid out to 3,188 families, individuals and businesses.

Should I consider AIG for life insurance?

Before taking out life insurance, you should check whether you are already covered. Some employers offer death in service cover, which will pay a tax-free lump sum to your dependents if you die while working for the company.

Even if you have this type of coverage, you may want to purchase a separate life insurance policy to ensure you are adequately protected.

It’s always best to shop around and compare policies from different insurers to get the best deal. You need to weigh price and coverage levels among other factors. Also check to see if any benefits are included, such as accidental death benefit and terminal illness cover.

How to contact AIG?

AIG’s customer service number is 0345 600 6820. Its offices are open from 9am to 6pm Monday to Thursday and 9am to 5.30pm on Friday.

Claims can be made by calling 0345 600 6815 or emailing claimsteam@aiglife.co.uk
The company also has a Twitter Account.

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