AIG Life has redesigned its YourLife Plan Income Protection (IP) insurance, making it easier to understand in order to provide further access to affordable income protection (IP).
AIG simplified its IP while adding new features, but continued to offer two income replacement options to match customers’ budget and needs.
The firm now pays up to 60% of the first £60,000 of a customer’s salary, plus 50% of anything after as a tax-free fixed monthly sum if the individual is too ill to work, regardless of whether the customer chooses full IP (paying monthly benefits up to retirement) or the shorter two-year claim option.
If a customer returns to work following a claim, and finds they have not fully recovered, AIG will also waive the deferred period and pay the monthly benefit, provided it’s within 12 months of them returning to work.
If they chose the shorter-term payment option, the linked claim is paid provided they have not exhausted the 24 months of benefit on that condition.
An income replacement guarantee means customers can claim up to £1,500 every month if their income has decreased since they bought insurance and no longer supports their chosen monthly benefit when they claim.
In addition, AIG tested its key facts literature on consumers ahead of launch.
Research found that the majority of testers understood the document they were reading and the benefits that AIG’s income protection provides, but highlighted where minor improvements could be made so customers better understand how it will help them.
Neil Davies, chief operating officer for AIG Life, said: “We’ve redesigned our income protection to be more accessible in price and understanding because we want to help customers take action for the future and see the value of income protection.
“The number of working adults who are off work due to long-term sickness is rising, from two million people in 2019 to around 2.5 million people in 2022.
“Yet it’s income that fuels people’s lifestyles and allows them to do what they love.
“By revamping our financial and rehabilitation support, we make it easier for financial advisers to recommend AIG’s IP and help people return to a life they can enjoy.”
