Is AIG life insurance still a good option in the UK?
AIG remains a well known life insurance brand with strong claims statistics and a wide choice of cover, but it closed to most new individual customers on 16th August 2024, and its UK life business has been acquired by Aviva PLC. Existing AIG policyholders can keep their cover and claim in the usual way; however, if you want new life insurance today, you will typically be offered alternative providers through a broker. Unfortunately, AIG is no longer available to new customers, and all existing customers have been notified that their policies were transferred to Aviva life insurance in 2024.
Is AIG currently accepting new life insurance customers?
No, AIG issued a statement confirming that from 16th August 2024 it stopped taking new business except through selected partner firms it has contacted directly, so most people looking for cover now will be placed with alternative insurers unless a specialist broker can still access AIG branded plans.
Can existing AIG life insurance customers still claim?
Yes, AIG has confirmed that there are no changes to existing customers’ insurance or the way they make a claim, so your current life insurance, critical illness insurance, or income protection plan should continue to run and pay out under the terms you originally agreed.
How competitive is AIG on price and features?
AIG has typically sat in the middle of the market on price rather than always being the absolute cheapest, but it offers a strong range of options, generous maximum ages, built in terminal illness cover, optional critical illness, and useful extras such as Smart Health and discretionary cancer support funds, making it a robust choice for many UK families.
What is the best way to arrange AIG style life insurance now?
The most practical alternative currently is to seek help from a regulated fee free life insurance broker with access to a wide range of life insurance companies. AIG has been a good option for many UK households for several years, but it now means that consumers need to look at alternative providers such as Aviva, L&G, LV=, and Vitality to protect their loved ones.
Key Points: AIG life insurance review UK 2026.
- AIG stopped taking most new individual life insurance applications on 16 August 2024, apart from a small number of selected firms.
- Existing AIG life insurance, critical illness and income protection policies are unaffected and claims are processed as normal.
- AIG, founded in 1919, is a long established global insurer and has been active in the UK since the 1950s.
- UK protection products include level, decreasing, increasing and whole of life cover, family income benefit, care cover whole of life and several critical illness options.
- Claims performance is strong, with life insurance payout rates of around 98 to 99% in recent years.
- Extra perks include Smart Health virtual GP services, bereavement support, help towards cancer related costs and funeral contribution.
- Cover is not sold directly to consumers, so you will need to use a qualified protection specialist, for example LifeSearch, to compare AIG with other UK insurers.
- Money to the Masses readers can receive up to £100 cashback when arranging life insurance through LifeSearch.
This AIG life insurance review explains how AIG works, what types of protection it offers, how much you might pay at different ages, the key benefits and drawbacks, and how to find a good value alternative if AIG is not open to you as a new customer. It is written for UK readers who want clear, jargon free information about low cost life cover and broker services that can save time and money.
AIG life insurance at a glance
AIG Life Limited has been a prominent player in the UK protection market, offering a full suite of life insurance and illness cover options. While it closed to most new business on 16 August 2024, the products already on the market are still widely held and continue to be supported. AIG policies are known for their flexibility, high maximum entry ages and useful free add ons which can provide real world support alongside a cash payout.
If you are looking for new cover, the important thing to know is that you cannot buy directly from AIG and, in practice, most new shoppers will be recommended other insurers. Using an independent broker is now essential if you specifically want to explore AIG branded options where they still exist, or simply want to see how AIG compares on price and features with other leading providers such as Aviva, Legal & General and Zurich.
Who is AIG?
AIG stands for American International Group, a global insurance and financial services group that started life back in 1919 when Cornelius Vander Starr founded American Asiatic Underwriters in Shanghai. It opened its first United States office in 1926 and moved its headquarters from China to New York City in 1939 as the business expanded.
AIG has grown steadily over the decades and now operates in around 80 countries and jurisdictions worldwide. The company entered the UK market in 1953, opening its first British offices, and expanded to Australia a few years later in 1957. It listed on the New York Stock Exchange in 1984 and has since made a series of high profile acquisitions and joint ventures, including SunAmerica, American General and Tata AIG in India, as well as UK and Irish brands such as Ageas Protect, Laya Healthcare and Validus Holdings.
American International Group (AIG) has been one of the biggest global insurance providers, with thousands of offices across the World. You might already be familiar with AIG Life UK as they have been operating in the UK for over 70 years with literally millions of current life insurance customers.
AIG Life sold a comprehensive range of life insurance polices and also include attractive extra features for customers, including online health support, bereavement counselling services and access to completely FREE legal advice if needed (about Probate specifically).
Rated 'EXCELLENT'
Over 1,100 5-star reviews
Compare cheap life insurance from only 20p a day with iam|INSURED†
Protect you and your family for less
What awards has AIG Life won?
American International Group has a proud history of winning industry awards. They have won many awards for their continued innovation and services to the life insurance industry, including:
2021 Awards
Protection Review – Organisation of the Year
COVER Excellence Awards – Outstanding Individual Critical Illness
Financial Services Forum Awards – Best Innovation in Insurance
2020 Awards
Protection Review – Best Underwriting and Claims
COVER Excellence Awards – Best Individual Life Insurance
COVER Excellence Awards – Best Added Value Provider
These are just a few examples of the many industry awards that AIG has collected over the past 5 years.
One minute AIG life insurance summary
- AIG stopped taking most new individual protection business from 16 August 2024, although some selected advice firms can still access products.
- It offers a broad range of life and critical illness options for individuals and businesses, including group life schemes.
- Policy types include level term, decreasing term, increasing term, whole of life, family income benefit and specialist options like Life Start and Instant Life Insurance.
- Minimum age at entry for many life and illness products is 17, with life cover available up to age 86 at outset on some plans.
- You cannot buy directly from AIG, so a qualified protection specialist must arrange and advise on the cover.
- As a Money to the Masses reader using LifeSearch, you can qualify for up to £100 cashback when you take out a policy.
AIG life insurance product overview
AIG’s individual life insurance range is designed to cover most personal and family protection needs, from paying off a mortgage to covering inheritance tax or providing a regular income for dependants. You can usually choose between single and joint cover and add critical illness cover to many plans if you want a combined payout on diagnosis of a serious condition.
| Type of Cover | Term Life Insurance (YourLife plan) |
|---|---|
| Cover options | Level Term Life Insurance (Family Life Insurance) Decreasing Term Life Insurance (Mortgage Life Insurance) Family Income Benefit Increasing Life Insurance (index linked) Relevant Life Insurance (Business Protection) Key Person Life Insurance (Business Protection) |
| Life Insurance options | Life Start (premiums increase by 3.5% per annum) *designed for First Time Buyer’s and young families on a budget. Instant Life Insurance (shorter application form to offer cover online more quickly and easily). |
| Coverage options | Single life (individual life insurance) Joint life (first death) *pays out on first event Joint life (second death) *pays out on second event |
| Terminal illness benefit | Terminal illness cover is included automatically with any life insurance policy. Terminal illness benefit pays out on diagnosis of a terminal illness (with less than 12 months to live). |
| Increasing life insurance option (Indexation) | Indexation is available as an optional extra to reduce the impact of inflation on your cover. Your sum assured and your premiums will increase at a rate of 5% per year (no further underwriting) |
| Waiver of Premium | Waiver of premium can be added at a small additional cost on top of your standard AIG life insurance premiums. Your monthly premiums will be paid if you are unable to work for more than 26 weeks due to accident or sickness. |
| Term options | Minimum term – 2 years Maximum term – 70 years |
| Age limits | Minimum age at entry – 17 years Maximum age at entry – 86 years Maximum age at end of policy term – 90 years |
| Maximum benefit | Unlimited |
| Exclusions (Term Life Insurance) | Term life insurance excludes suicidal death as a reason to claim within the first 12 months from the policy start date. Terminal illness benefit claims that do not meet the policy terms and conditions will not be paid out. |
Terminal illness cover is normally built into AIG term life policies. This pays out the life insurance sum early if you are diagnosed with an illness that is expected to cause death within 12 months, providing valuable funds when they are often most needed.
For added flexibility, you can choose single life cover, joint life first death cover, which pays out on the first death only, or joint life second death, which pays when the second person dies. The best structure depends on your goals, so it is worth taking advice from a broker before deciding.
AIG critical illness cover in detail
AIG’s critical illness insurance sits alongside or on top of life cover and pays a lump sum if you are diagnosed with a serious condition covered under the policy. Rather than focusing purely on a list of conditions, AIG uses an impact based approach, looking at how an illness affects your life, but the cover is broadly comparable to around 45 conditions on the core version and around 50 on the enhanced version.
| Type of Cover | Critical Illness Cover |
|---|---|
| Cover options | Level Term Critical Illness Insurance (Family Protection) Decreasing Term Critical Illness Insurance (Mortgage Protection) Family Income Benefit Increasing Critical Illness Insurance (index linked) Key Person Critical Illness Insurance (Business Protection) |
| Critical Illness Insurance options | Low Start (premiums increase by 3.5% per annum) *designed for First Time Buyers and young families on a budget Instant Life Insurance (shorter application form to offer cover online more quickly and easily) |
| Coverage options | Single life (individual life insurance) Joint life (first death) *pays out on first event Joint life (second death) *pays out on second event |
| Conditions covered (Core) | AIG critical illness insurance offers protection for diagnosis of over 45 key conditions (*including cancer, heart attack and stroke). *These conditions accounted for 84% of AIG critical illness claims in 2021. Group 1 conditions = 100% pay out Group 2 conditions = 25% of the sum assured or £25,000, whichever is lower AIG Key 3 is also available covering the top 3 critical illnesses (Cancer, Heart Attack and Stroke). This cover is available at a lower cost to full CI. |
| Conditions covered (Enhanced) | AIG Enhanced critical illness insurance offers protection for diagnosis of 50, plus pregnancy cover. Group 1 conditions = 100% pay out Group 2 conditions = £35,000 or the full cover amount, whichever is lower Pregnancy protection = £5,000 for one of the pregnancy related conditions, plus £5,000 for foetal death in utero |
| Total and Permanent Disability | Can be added at an extra cost |
| Children’s Critical Illness Cover (Core) | AIG critical illness insurance (core) offers cover for over 49 serious illnesses, including hospitalisation benefit and children’s life cover Group 1 conditions = £25,000 or 50% of cover amount Group 2 conditions = £25,000 or 25% of cover amount Children’s life cover = £5,000 pay out Hospitalisation benefit = £100 per night from night 7 up to a maximum of 30 night’s stay in total |
| Children’s Critical Illness Cover (Enhanced) | AIG critical illness insurance (core) offers cover for over 75 serious illnesses, including hospitalisation benefit and children’s life cover. Group 1 conditions = £50,000 or 50% of cover amount Group 2 conditions = £25,000 or 25% of cover amount Birth defect cover = £5,000 pay out Children’s life cover = £10,000 pay out |
| Premium type | Guaranteed (fixed) |
| Age limits | Minimum age at entry – 17 years Maximum age at entry – 75 years Maximum age at end of policy term – 80 years |
| Exclusions (Term Life Insurance) | No payment will be made if a policyholder is diagnosed with a serious illness that is not covered under the policy definitions set out in the policy documents. Pay out will not be sent if you die within 2 weeks of diagnosis |
You can choose stand alone critical illness or combine it with term life insurance through AIG’s Critical Illness with Term Assurance plan. Premiums are guaranteed, which means they will not go up over time unless you choose an increasing cover or a product like CIC Start where increases are built into the design.
Total and permanent disability can be added for an extra cost, allowing the policy to pay out if you suffer a condition that leaves you permanently unable to work or carry out daily activities, even if it is not one of the listed illnesses. This can be particularly valuable if your job is physical or you are heavily reliant on your earnings.
AIG children’s critical illness benefits
Many families are unaware that critical illness policies can include cover for their children, but AIG has invested heavily in this area and offers a solid package of benefits designed to ease financial pressure if a child becomes seriously ill.
- Children are normally covered from birth up to age 21.
- Under core cover, Group 1 conditions pay the lower of £25,000 or 50% of the adult sum insured; Group 2 conditions pay the lower of £25,000 or 25% of the adult cover.
- Under enhanced children’s cover, Group 1 conditions pay the lower of £50,000 or 50% of the adult cover, while Group 2 conditions maintain the £25,000 or 25% structure.
- There is an additional birth defect payout of up to £5,000.
- Children’s life cover, typically around £5,000 to £10,000, is included to help with funeral or related costs.
- A hospitalisation benefit pays £100 per night from the seventh consecutive night in hospital, up to 30 nights, which can help with travel, parking and time off work.
- If treatment is not available in the UK and the child has to travel abroad, the benefit can be doubled in some circumstances to help with extra costs.
Although no one wants to think about a child falling ill, these features can provide a real lifeline at a difficult time and are worth comparing carefully between insurers if children’s cover is important to you.
Can I buy AIG Whole of Life insurance?
AIG whole of life insurance (or whole of life assurance) is a form of guaranteed life insurance policy. This is a life insurance policy that ensures your loved ones receive a guaranteed lump sum when you pass away. It works just like any other life insurance policy, with the key difference being that your policy is guaranteed to pay out when you need it to.
These policies are designed for very specific purposes, such as:
- Inheritance Tax (IHT) liability
- Legacy planning
- Funeral expenses (Co-op stated the average cost of a funeral in 2020 was £3,740)
- Pay off other debts
The table below shows a quick summary what cover options are included within AIG whole life insurance policies .
| Type of Cover | Whole of life insurance |
|---|---|
| Cover types | Level cover Increasing cover (see indexation option) |
| Premium type | Guaranteed |
| Coverage options | Single life (individual life insurance) Joint life (first death) *pays out on first event Joint life (second death) *pays out on second event |
| Increasing life insurance option (Indexation) | Indexation is available as an optional extra to reduce the impact of inflation on your cover. Your sum assured and your premiums will increase at a rate of up to 10% per year (no further underwriting). This increase will be in line with Retail Price Index (RPI) |
| Waiver of Premium | Waiver of premium can be added at a small extra cost on top of your standard AIG life insurance premiums. Your monthly premiums will be paid if you are unable to work for more than 26 weeks. This must be due to accident or sickness. |
| Age limits | Minimum age at entry – 17 years Maximum age at entry – 84 years |
| Maximum benefit | Unlimited |
| Exclusions | Term life insurance excludes suicidal death in the first 12 months from the policy start date |
AIG Whole of Life Insurance Key Facts Document
Free extras that come with AIG protection
One of the reasons many advisers like AIG is that its protection plans come with several free support services and discretionary benefits, sitting alongside the main life or illness payout. These add tangible value without increasing the premium.
- Smart Health access – a virtual health service providing on demand GP consultations, mental health support, online health checks, fitness programmes and access to Best Doctors for second medical opinions. Families can often use the service too, helping you avoid long waiting times.
- Terminal illness cover – built into life insurance at no extra cost, paying out the full sum insured if you are diagnosed with a condition that is expected to cause death within 12 months.
- Cancer support fund – a discretionary fund that can pay up to £300 towards costs such as travel, wigs or other items needed after cancer treatment.
- Funeral contribution – AIG can advance up to £10,000 of a valid death claim to help with funeral bills while the rest of the claim is processed.
- Winston’s Wish bereavement support – access to specialist help for bereaved children, which can make a big difference to families coping with loss.
- Extra benefits with CIC Start – on the CIC Start plan, pregnancy and children’s cover are automatically included and the full menu of conditions is covered.
These services are usually provided by third parties and can be changed or withdrawn, but while they are in place they significantly enhance the day to day value of an AIG policy, particularly if you make regular use of the virtual GP and wellbeing tools.
Optional add ons with AIG life and illness cover
As well as the core benefits, AIG allows you to tailor your policy with optional extras. These increase the premium but can provide important extra peace of mind.
- Waiver of premium – for a small extra cost, your premiums will be paid by AIG if you are incapacitated for longer than 26 weeks, so your cover can continue even if you cannot work.
- Total and permanent disability – can be added to critical illness cover, giving a payout if you are permanently disabled even if you do not meet the strict definitions of a listed condition.
- Enhanced adult critical illness – expands the range of conditions and improves some benefit levels for adults, often worth considering if your budget allows and you want the broadest possible cover.
- Care cover on whole of life – as noted earlier, this option allows up to 75% of your life cover (capped at £300,000) to be paid early if you cannot perform three or more daily living tasks such as washing, dressing or feeding yourself, or in some cases of severe cognitive impairment.
Whether these add ons are worth it will depend on your health, job, family situation and budget. A broker can walk you through the options, explain how they work in plain English and show how each choice affects your monthly premium.
How much did AIG life insurance cost?
The cost of any life insurance policy depends on factors such as your age, health, smoking status, job, the amount of cover and the length of the term. AIG is no different. To give a rough idea, the following examples show monthly premiums for £250,000 of level term life insurance over a 20 year term, for both non smokers and smokers at different ages.
AIG life insurance price comparison – £250,000 over 20 years (non smoker)
| Age and smoking status | AIG premium | Cheapest premium | Most expensive premium |
|---|---|---|---|
| 25 year old non smoker | £7.84 | £5.42 | £9.25 |
| 35 year old non smoker | £11.13 | £9.61 | £13.59 |
| 45 year old non smoker | £21.75 | £20.76 | £28.54 |
| 55 year old non smoker | £57.09 | £54.96 | £71.23 |
AIG life insurance price comparison – £250,000 over 20 years (smoker)
| Age and smoking status | AIG premium | Cheapest premium | Most expensive premium |
|---|---|---|---|
| 25 year old smoker | £10.26 | £8.93 | £12.72 |
| 35 year old smoker | £21.53 | £18.47 | £24.39 |
| 45 year old smoker | £52.50 | £49.99 | £65.26 |
| 55 year old smoker | £155.19 | £146.39 | £218.25 |
These sample prices show that AIG is rarely the absolute cheapest option, but it usually falls somewhere between the lowest and highest premiums across the market for similar quality cover. The older you are, the greater the spread between different insurers and the bigger the potential saving from shopping around.
It is essential to remember that these figures are only illustrations. Your own quote could be higher or lower depending on factors such as:
- Your height, weight and general health.
- Whether you smoke or vape, or have done so in the last 12 months.
- Any existing medical conditions or regular medication.
- Your job and hobbies, especially if they involve physical danger.
- The amount of cover you want and how long you want it for.
- Whether you choose level, decreasing or increasing cover.
- Whether you add critical illness, waiver of premium or disability cover.
During the application process, AIG may ask for additional medical evidence. This could be a short nurse screening, a GP report or a more detailed exam, depending on your age, sum insured and health. A broker can explain what is likely before you apply and, if necessary, help you approach other insurers that might take a different view of your medical history.
AIG life insurance pros and cons
Pros
- Long standing, globally recognised insurer with a strong UK presence.
- Flexible range of policy types, including term, whole of life, family income benefit and care cover.
- High claims payout rates and good independent product ratings.
- Generous maximum age at entry and wide choice of term lengths.
- Built in terminal illness cover and access to Smart Health virtual GP services.
- Helpful added value benefits such as funeral contributions and cancer support funds.
- Children’s critical illness cover included or available on most critical illness plans.
Cons
- Closed to most new business from 16 August 2024, limiting access for new customers.
- Not usually the absolute cheapest on the market for basic term cover.
- Cannot buy directly from AIG, so you must go through a broker.
- Some customers have reported frustrations with administration or claim delays.
- Like any insurer, cover is subject to conditions and exclusions, particularly for critical illness and care cover.
Can I write AIG life insurance into Trust?
When you purchase an AIG life insurance policy, you have the option to place your policy in trust for free.
By placing your AIG life insurance policy into Trust you can avoid paying Inheritance Tax (IHT) on your life insurance benefit. A Trust deed also means that you can express specific wishes on your life insurance policy. You policy pays out avoiding probate, so your loved ones will receive the money much more quickly than if you did not have a Trust.
What are the benefits of an AIG life insurance trust deed?
- Cheaper than a Will (usually free)
- Express your wishes on your life insurance pay out (e.g. beneficiaries and trustees)
- Avoid probate (pays out more quickly)
- Can also help to avoid Inheritance Tax liability
What types of AIG life insurance trust are available?
- AIG Discretionary Trust: The most flexible type of Trust deed that allows you to change your beneficiaries and entitlement.
- AIG Bare Trust: Simple Trust deed that allows you to decide who will benefit from your life insurance policy (cannot be changed).
How do I claim on AIG life insurance?
Making a claim on a life insurance policy is never going to be a good thing, but insurers are generally good at handling these very delicate and distressing situations.
AIG claims team are available to help you through the claims process during what will be a very difficult time. The claims team are on hand to help with bereavement or terminal illness claims. They are also there to help with serious illness claims after diagnosis of a critical illness.
Here are some useful things that you should know if you need to contact their life insurance claims team.
To make a bereavement claim on an AIG life insurance policy, you will need to contact the AIG claims team initially. Before you contact them, you should gather the following information where possible, to help make the process as quick as possible.
AIG claims team will be available to make the process as quick and stress-free as possible.
Before contacting the AIG claims team it can be useful to have certain information easily available to you, to make the process faster and easier. AIG also have helpful resources available online to help you to understand how to make a valid claim and what the process will be like.
Useful information (before you call):
- Full name of policyholder
- Policy number (if available)
- Death certificate (claims can be opened without this if not available)
- Trust deed (if applicable)
AIG life insurance claims contact information
Telephone – 0345 600 6815
Telephone (from overseas) – +44 1737 44 1815
Email – claimsteam@iaglife.co.uk
Opening hours – Monday to Thursday 8.30am – 6.00pm, or Friday 8.30am – 5.30pm (excluding Bank Holidays)
AIG life insurance claims statistics for 2021
Here are some of the key AIG life insurance UK claims statistics published from 2021.
AIG Life Insurance claims:
- 5,308 families looked after
- £306 million paid out in claims (personal, business and group life)
- 95% of all claims paid
AIG life insurance claims paid:
- 31% Cancer
- 24% Respiratory conditions (including Covid)
- 16% Heart conditions (cardiovascular)
- 13% Coronavirus
- Average age was 66 years (at death)
How do I contact AIG Life UK?
AIG contact details are provided on their website or we’ve provided some details here to save you some time. There are several reasons why you might need to contact AIG regarding your life insurance policy, so it’s helpful to know the right number to call or the email or postal address that you would need.
AIG life insurance contact details
AIG Customer Services
Telephone – 0345 600 6820
Email – enquiries@aiglife.co.uk
Opening hours – Monday to Thursday 8.30am – 6.00pm, or Friday 8.30am – 5.30pm (excluding Bank Holidays)
AIG Life Insurance (inbound calls)
We’re all very aware of telephone scams and calls from unusual telephone numbers which can be frustrating. AIG life insurance uses the following telephone numbers to contact its existing customers. If you recognise any of these numbers then AIG have tried to call you.
Telephone – 01737 825000 or 01633 745883
AIG Life Insurance address (postal enquiries)
If you need to contact AIG by post then you can do so at the following address:
Customer Service Team,
AIG Life Limited,
PO Box 12010,
Harlow,
CM20 9LG
How do I complain about AIG life insurance?
If you need to make a complaint to AIG life insurance then you should contact the complaints team, as follows. AIG complaints team will endeavour to answer any complaints promptly and fairly.
AIG life insurance complaints contact details
Telephone – 0345 600 6813
Email – complaints@aiglife.co.uk
Post – Complaints team, AIG Life Limited, PO Box 12010, Harlow, CM20 9LG
The AIG life insurance complaints process aims to be simple and straightforward and AIG are committed to making sure that they do their upmost to resolve any complaints, following its own complaints procedure. You may feel that your complaint has not been dealt with to your satisfaction or you are unhappy with the outcome. You are then within your rights to refer your complaint to the Financial Ombudsman Service (FOS).
Note: Making a complaint does not affect your rights to take legal action against AIG if something serious has occurred.
Making a complaint to the Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is an impartial and free service for financial services customers in the UK. This service can be used to settle any disputes between life insurance companies and their customers in the United Kingdom. If they feel that you have suffered any financial loss as a result of your life insurance policy, then they may rule for compensation to be awarded.
Telephone – 0800 023 4567 (or 0300 123 9123)
Telephone (outside the UK) – 0207 964 0500
AIG life insurance summary
AIG is a long established insurer that has built a strong reputation in the UK life and critical illness market. It offers flexible cover options, solid claims statistics and a range of useful extras that can make a real difference when you or your family need support. Existing customers can be reassured that their policies remain in force and claims will continue to be handled as normal, despite the closure to most new business in August 2024.
Whichever insurer you choose, the most important thing is to put some protection in place that fits your budget and gives your loved ones financial security. With clear guidance and a proper comparison of AIG and its competitors, UK families can secure cover that is both affordable and reliable for the long term.
Compare Our Best Life Insurance Quotes
Find the right cover to protect you and your family. Compare quotes from some of the UK’s leading Life Insurance brands.
