AIG’s whole of life protection plan is available to customers aged 17 to 84 at outset and offers sums insured up to £20 million. The plan pays out on death at any time or on terminal illness at any time and customers also have access to the Best Doctors service. Premiums are guaranteed but there is no surrender value at any time.
Once the plan has started and before their 90 birthday, customers can increase their cover by up to £5 million if the government announces legislative changes to the rate of Inheritance Tax (IHT). Plans can be written in trust (this is almost always advisable anyway and can be done online) and cover can be single or joint life (first or second event).
Benefits can be linked to rises in the Retail Prices Index (RPI) up to 10% a year. Additional non-underwritten cover can be taken out up to age 71 on marriage/civil partnership; having a child; increasing a mortgage, and getting a salary increase. AIG Life says 90% of applicants can get an underwriting decision without any additional medical evidence from a GP being needed. Waiver of premium benefit is available, with a 26 week deferred period.
What They Say
Head of marketing & propositions Steve Casey said: “This is an exciting development for AIG Life and underpins our desire to provide intermediary partners with quality propositions to match their clients’ needs. It is the first in a series of developments around whole of life plans that we will be bringing to the market.”
What We Say
"Most people buy term insurance when they want life cover, with whole of life cover being chosen both for low cost guaranteed acceptance plans and for legacies and IHT planning. However, a case can be made that whole life should also be considered by anyone who is not sure how their needs will pan out in future but who is confident the need for cover will not decline.
"AIG Life’s proposition is simple, following established lines, but includes useful additional elements such as the Best Doctors service, fast GP-free underwriting for most and being able to set up a trust online. Cover can also be increased in future, although many people’s needs are more likely to rise in line with earnings rather than prices, while a shorter waiver of premium deferred period would also fit better with many people’s sick pay entitlement too."