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AIG Income Protection Insurance Review 2024

In our latest review of AIG Life UK, our team of independent insurance experts explains all the main benefits and features of AIG income protection insurance. This comprehensive guide contains information about how AIG income protection works and the easiest ways to save money on your policy in 2024.

AIG has been one of the world’s biggest and best-known general insurance companies for decades, with customers in over 80 countries worldwide. AIG income protection insurance policies are popular in the UK, due to attractive customer benefits like:

  • Income Replacement Guarantee
  • Waiver of Premium (for up to 6 months)
  • Option for increasing cover
  • Cover available for stay-at-home parents and unemployed
  • Can now claim for redundancy
  • AIG Smart Health customer support app

Income protection insurance is the simplest way to protect yourself against the financial impact of an illness or injury. AIG income protection will pay out each month to help replace your usual income if you can’t work due to your health. AIG provides cost-effective policies for thousands of people in the UK, with prices starting at less than £10 per month.

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60-Second Summary – AIG Income Protection Insurance Review 2024

Our panel of independent insurance experts has conducted thorough research into AIG Life and all the best features of their income protection policies. AIG is one of the UK’s biggest insurers and is consistently listed in the UK’s Top 10 Life Insurance companies.

Income protection insurance has been growing in popularity in recent years, with over 247,000 policies being sold in 2023. AIG paid out on 90% of all new income protection claims in 2022, supporting thousands of customers across the UK.

  • AIG income protection insurance pays out a regular cash income if you are signed off work due to an illness or an injury. You can cover up to 60% of your usual monthly income which will support you financially as you recover.
  • Based on our latest research, the average cost of AIG income protection insurance is around £21.16 per month with policies starting from less than £10.
  • Some of the most popular benefits for AIG customers include a free Waiver of Premium benefit, reviewable cover options, and a Sick Pay Guarantee for medical professionals and teachers.
  • AIG Life Limited was bought by Aviva PLC in late 2023, and it is still unknown if AIG will continue trading as AIG Life once this merger is complete. AIG is still accepting new applications, and our experts will update this guide as soon as more information is available.
  • If you aren’t sure if AIG is the right choice for you, it can be helpful to get free and friendly advice from an income protection expert.

AIG Life income protection is one of the most popular options for income protection customers in the UK. AIG policies are generally affordable and flexible, allowing you to choose the level of cover that you are most comfortable with.

The main options for AIG income protection insurance are:

  • Short-term income protection: This covers one person’s income and pays out for up to 24 months at most (covers up to 60% of income)
  • Long-term income protection: This covers one person’s income and pays out until the end of the policy if necessary (covers up to 60% of income)
  • Group income protection: This is designed to cover the income of 3 or more people (business employees) and policy options are flexible (covers up to 80% of income)

If you aren’t sure which type of policy is right for you, it can be helpful to get some advice from an income protection specialist before you apply.

AIG Insurance still exists in the UK, though AIG Life was bought out in 2023. The biggest insurance industry news in 2023 was Aviva PLC. buying AIG Life Limited in September. This is one of the biggest mergers in UK life insurance history, with two major insurance companies joining forces.

This merger is still waiting for Financial Conduct Authority (FCA) approval before it can officially go ahead later in 2024. AIG Life is still accepting new applications as of April 2024, and current customer policies shouldn’t be affected by this merger.

All AIG policies will be protected under the Financial Services Compensation Scheme (FSCS), which ensures that financial services customers don’t lose money if their insurance company stops trading.

It’s still unclear if AIG Life will continue to operate separately from Aviva following the merger, or if both businesses will fall under the Aviva brand. Our insurance experts will update this guide when new information about this becomes available.

AIG has a reputation for being a reliable insurance company, with the latest figures showing that they paid out 90% of new income protection claims in 2022. Their income protection policies have a 5-star Defaqto rating, which indicates that they provide good quality cover and a decent range of customer benefits.

In 2023, Fairer Finance rated AIG Life at 75% for customer experience, based on their claims and complaints processes, as well as their transparency with customers.

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AIG Life streamlined its income protection policies last year, making them simpler for both new and existing customers. This included introducing new easy-to-read policy documents, which 71% of people agreed were easier to understand.

AIG also launched several new benefits for customers including redundancy cover, higher age limits (an increase of 5 years), and more options for Waiver of Premium.

AIG Life Limited is currently rated 3.0 out of 5.0 Stars on independent customer review site Trustpilot, with 52% of AIG customers rating AIG as 5.0 out of 5.0 Stars. Though there are some negative reviews, AIG responds to all negative reviews within 24 hours and refers customers to their support team to resolve any issues.

Most of the positive reviews mention a quick and straightforward claims process, as well as helpful and knowledgeable staff members.

AIG Trustpilot screenshot

AIG income protection insurance supports you financially, by paying out regular cash payments if you can’t work due to illness or injury. These payments will normally be tax-free (see Income Protection and Tax Guide) and are used to help cover any important bills (e.g. mortgage, rent, utilities).

Many people in the UK have access to limited savings or would be forced to rely solely on support like Statutory Sick Pay (only £109.40 per week). AIG allows you to insure up to 60% of your usual income, so you can focus on recovery and not how you will pay your monthly bills.

AIG income protection insurance policies will:

  • Insure up to 60% of income up to £60,000 per year
  • Insure 50% of anything above £60,000 (limited to £20,833 per month)
  • If you are a stay-at-home parent or have no regular income, AIG will limit your payment amount to a maximum of £1,667 per month

You will be able to claim on your policy if your doctor signs you off work for 4 weeks or longer. The amount of time that you can claim for will vary depending on the type of AIG policy that you have (short-term vs long-term). Your claim payments will start following your chosen deferred (waiting) period, which can be anywhere between 4 weeks to 52 weeks.

AIG provides some brilliant benefits for their income protection insurance customers and introduced significant improvements to their policies in 2023. Some of the main benefits of AIG income protection are:

  • Income protection is now available for stay-at-home carers (up to £20,000)
  • Increasing cover protects your policy against inflation if your monthly outgoing costs increase (e.g. rent, mortgage, utilities)
  • Waiver of Premium will pay your monthly premiums for you if you are made unemployed for up to 6 months
  • Can be covered for income of up to £250,000
  • Can now claim for redundancy (if redundant for up to 6 months)
  • Sabbatical Break Cover will allow you to to claim on your policy when on a career break (based on an assessment of your ability to carry out normal working tasks)
  • Guaranteed Insurability Option allows you to adjust your level of cover without extra medical questions following important life events (e.g. marriage or a new child)
  • Proportionate Payment Income Top Up is where AIG will cover the difference in pay if you need to return to work on reduced hours following your sick leave
  • Sick Pay Guarantee for doctors, surgeons, teachers, and dentists means that your policy will start paying out before your deferred period ends, based on your employee sick pay scheme (52-week deferred period only)
  • Increased Income Guarantee protects you if your income has decreased since buying your policy, so your claim payments won’t change
  • AIG Smart Health App offers extra health support including 24/7 online GP appointments, fitness and nutrition advice, and mental health support and counselling
  • AIG personalised online health check will flag up any areas of concern (e.g. risk of heart disease) and then provide diet and lifestyle advice
Policy TypeAIG Life Your Life Plan Income Protection
Which policies are available?Income protection insurance (single life)
Group income protection (business protection)
What are the payment options?Guaranteed (fixed) payments that don’t change
Increasing payments (if you choose increasing cover for your policy)
What are the cover options?Short term income protection (pays out for 24 months maximum)
Long term income protection (will pay out until the end of the policy term)
Can I buy increasing cover?YES – AIG customers can have increasing cover, which means that your cover amount increases in line with changes to the Retail Price Index (RPI)
Includes Waiver of Premium?YES – ‘Unemployment Waiver of Premium’ is included automatically in your policy.  
This means that AIG will pay your policy premiums for you for up to 6 months if you become unemployed.  
You won’t be eligible for this benefit if you become unemployed within the first 90 days of your policy.
What are the policy term options?Your policy must last for a minimum of 5 years.  
AIG policies can only last for a maximum of 53 years. Your maximum policy term will be based on your age when you apply, as your policy must end before your 70th birthday.
How much will my policy pay out when I claim?Your amount of cover will be based on your pre-tax earnings from when you initially applied. You can insure up to 60% of your income up to £60,000 and 50% of anything above £60,000.
What are the deferred (waiting) period options?Almost all income protection policies will include a waiting (deferred) period between when you claim and when you receive your first payment.  
The main options for AIG income protection are:  

4 weeks
8 weeks
13 weeks
26 weeks
52 weeks
Are there any policy exclusions?AIG will not pay out if your illness or injury doesn’t meet the ‘incapacity definitions’ within your policy documents.  

AIG will also not pay out if:  

You don’t supply medical information when asked
You provide incorrect information on your application
You have stopped paying for your policy (cover is cancelled after 30 days)
You didn’t let AIG know about incorrect details in your cover summary or your application details
Are there any additional benefits included with my policy?YES – AIG provides a range of extra benefits and policy features for their customers like:  

Guaranteed Insurability
Income Replacement Guarantee
Sick Pay Guarantee (for dentists, doctors, surgeons, and teachers)
Sabbatical Break Cover

AIG Income Protection Key Facts Document – CLICK HERE

AIG Income Protection Terms and Conditions (Cover Details) – CLICK HERE

To apply for AIG income protection insurance, you will need to:

  • Be aged 17 or older
  • Be a permanent UK resident (including Channel Islands, Isle of Man, and Gibraltar)
  • Have a UK, Channel Islands, Isle of Man, or Gibraltar bank account
  • Have been registered with a doctor in the UK, Channel Islands, Isle of Man, or Gibraltar for at least 2 years

Income Protection Insurance provider reviews

Cost effective cover for employed, self-employed, stay at home parents etc.Other insurance companies might be cheaper for certain customers
Policies are 5 Star Defaqto ratedCan sometimes exclude claims for pre-existing medical conditions (you would be told about this if this applies to you)
A comprehensive range of policy benefits including Waiver of Premium, Sick Pay Guarantee, and Guaranteed InsurabilityOther companies might have a wider range of customer benefits e.g. gym discounts

Our independent insurance specialists have compared a range of quotes for AIG income protection insurance, to work out an average price for UK customers. Currently, the average cost of AIG income protection insurance is around £21.16 per month.

The actual cost for each AIG customer will be slightly different, as the price will be based on things like your age, occupation, and medical history.

If you are worried about the price of your policy, there are some simple ways to lower the cost of your cover. You can:

  • Take out a lower amount of cover or choose a shorter policy term
  • Choose a longer deferred period (the waiting period before your claim payments start)
  • Compare prices from other insurance companies to make sure that AIG is your cheapest option
  • Speak to an income protection expert for free and friendly advice about how to reduce costs

Below are some example prices for AIG income protection customers, to show the difference in pricing for people of different ages and occupations (employed vs self-employed).

Short-term income protection: Pays out £1,000 per month for 24 months (employed)

Age of applicantCost per month (£s)
Age 25£9.66
Age 30£10.01
Age 35£11.05
Age 40£12.83
Age 45£17.04
Age 50£22.23
Age 55£30.13

Short-term income protection: Pays out £1,000 per month for 24 months (self-employed)

Age of applicantCost per month (£s)
Age 25£13.09
Age 30£14.39
Age 35£17.00
Age 40£20.57
Age 45£26.24
Age 50£36.99
Age 55£55.08

Note: All the quotes above were generated on and are accurate as of 05/04/2024. The quotes were for a customer who does not have any pre-existing medical conditions or a high-risk job role.

As AIG sells various types of insurance, there are a few different contact numbers to choose from if you need to get in touch. As income protection is a life insurance product, we have listed the contact details for the AIG life insurance team below.

AIG Customer Services contact details

Telephone – 0345 600 6820


Opening hours – Monday to Thursday 8.30am – 6.00pm, or Friday 8.30am – 5.30pm (excluding Bank Holidays)


Customer Service Team,
AIG Life Limited,
PO Box 12010,
CM20 9LG

Five Stars

Rated "Excellent" 5 out of 5

"This company went above & beyond to get me cover even though I have MS, I am very happy I managed to get cover, Amazing staff, Dean went above & beyond, I highly rate this company."

by Elizabeth Turner-Long - 9th August 2023

If you need to claim on your income protection insurance, you will need to contact AIG directly to start the claims process. You can contact AIG’s usual customer service team to begin your claim. Your payments will start once your claim is approved and after your chosen waiting (deferred) period.

As part of AIG’s ‘Income Replacement Guarantee’, you will always be entitled to claims based on your income when you applied for your policy. This won’t change, even if your income decreases or you stop working after buying your cover.

In some cases, AIG might deduct part of the money from your claim payments. This will happen if you are receiving other forms of income (e.g. employer support, private pension, payment from other insurance policies).

Note: To be eligible for the Income Replacement Guarantee, you must have been employed for at least 25 hours a week before applying for cover. This drops to 16 hours a week if you are self-employed.

You are allowed to cancel your AIG income protection at any point in your policy term. You’re not tied into your policy permanently, and there shouldn’t be any penalty or fees attached to cancelling your cover.

Simply contact AIG over the phone, or via email or post to let them know that you no longer need your policy. Their team should then take care of cancelling your cover, and you can cancel your Direct Debit with your bank or building society.

Note: You have 30 days to cancel after buying your policy to receive a full refund of any money that you have paid. The exception to this is if you have already claimed within those 30 days.

If you feel that AIG hasn’t lived up to your expectations, you are always able to submit a complaint. You should contact AIG Life directly, as they will have a dedicated complaints team for exactly this situation. When you complain, AIG will ask for the following information:

  • Your name
  • Your address
  • Your preferred contact number and when you would ideally like to be contacted
  • Details about your complaint (e.g. type of insurance policy, policy number)
  • Copies of any messages, emails etc. that you have received related to your complaint
  • How you would like your complaint to be dealt with/ideal outcome

Generally, insurance companies like AIG will try and resolve any customer complaints as soon as possible to avoid negative reviews. AIG’s website states that they aim to respond to any complaint within 3 business days of receiving it. AIG aim to resolve all complaints within 8 weeks where possible, and they may escalate the complaint when needed.

If you aren’t happy with how your complaint has been handled, you can refer your complaint to the Financial Ombudsman Service (FOS). The Financial Ombudsman Service can offer free and impartial support, and will even award compensation in some cases.

AIG complaints contact details

Telephone – 0800 012 1301

Telephone – +44 20 8649 6666 (overseas)

Email uk.customer.relations@aig.com


Customer Relations,
American International Group UK Limited,
The AIG Building,
2-8 Altyre Road,

AIG Complaints Procedure Overview – CLICK HERE

Financial Ombudsman Service Logo

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


Is it worth taking out income protection?

Income protection insurance provides valuable financial support if an illness or an injury prevents you from working as normal.

AIG income protection insurance will provide you with a regular income while you are recovering, to support you with important bills like mortgage or rent payments. Without income protection insurance, you may be forced to rely on savings or Statutory Sick Pay, which is often not enough money to cover all your essential bills.

What is Smart Health by AIG?

Smart Health is AIG’s customer app which allows customers to access various support services. This includes services like:

  • Online GP appointments (can be accessed 24/7)
  • Personalised 4 or 8-week fitness programmes
  • Specialist nutrition plans and advice
  • Dedicated mental health support including counselling
  • AIG personalised online health check
  • Second medical opinion after a previous diagnosis

This app is free for AIG customers and can be easily downloaded to an Apple or Android smartphone.

What does AIG stand for?

AIG stands for American International Group which is the company that owned AIG Life Limited in the UK. AIG Life Limited has since been bought by Aviva PLC in 2023. At the moment, there has been no news as to whether AIG will continue to trade under this name after 2024.

If you are interested in buying income protection insurance from AIG, the simplest way to find the best and cheapest quotes is by speaking to an insurance specialist. An income protection expert will be able to explain all the pros and cons of AIG insurance policies and will help you compare quotes across the market.

For free income protection insurance advice, call 0800 009 6559 or CLICK HERE to speak to our experts.

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Is it worth having income protection insurance?

Income protection insurance can be extremely useful and very important for anyone who is unable to work due to sickness or an injury (e.g. from an accident, sports, work etc.). Essentially, income protection insurance pays out monthly to replace any lost earnings while you are unfit or unable to work.

Payments for income protection insurance can be used to pay your mortgage, rent, other credit commitments, food bills, utilities and other regular outgoings.

Common myths about income protection insurance:

  • Income Protection Insurance won’t pay out
  • Statutory Sick Pay (SSP) from the government will cover me
  • The cost of Income Protection Insurance is high
  • People with medical conditions can't have Income Protection Insurance
  • My employer will help support me
What does income protection insurance cover?

As a rule of thumb, income protection insurance will pay out a regular monthly tax-free payment to you if you can’t work and you are signed off by a doctor. You will need to provide supporting evidence from a medical professional such as your GP and proof of income from your employer or accountant.

Example: Sarah was involved in a car accident which resulted in a serious back and neck injury that prevented her from being able to drive for 6 months. She was able to claim on her income protection policy after 4 week for the remaining 5 months until she was able to move and drive again. She would also usually be able to claim for rehabilitation and physiotherapy to help her to return to work as planned.

Do I need income protection insurance for a mortgage?

Income protection insurance and mortgage life insurance are not compulsory for getting a mortgage in the United Kingdom. Some mortgage lenders might ask for you to get insurance as a condition of the mortgage offer in some circumstances but this is rare.

It is strongly recommended to have insurance to protect you and your family if you have a mortgage and other credit commitments. If you consider what the financial impact would be if you were unable to work due to accident, sickness or injury, and even if you were to die.

Most common mortgage protection insurance policies:

  • Buildings insurance
  • Mortgage life insurance
  • Income protection insurance
  • Critical illness insurance
  • Mortgage payment protection insurance (Accident, Sickness & Redundancy
Is income protection insurance tax free?

Payments from an income protection insurance claim are almost always tax-free, apart from some business income protection policies. This is because you pay tax on the premiums for personal income protection insurance at source (i.e. the premiums are paid from your net monthly salary).

The same applies to life insurance premiums and payouts, effectively you have already paid tax on the premiums that you have paid. There are some other possible tax implications that may apply in certain circumstances so you should seek proper advice or guidance if you have any specific questions.

Which is the best income protection insurance UK?

It’s very difficult to say overall which income protection insurance policies or providers are the best, simply because there are so many different options and types of cover. You can get income protection insurance from an even wider range of insurance providers than life insurance, so your choice is even greater.

The most common income protection insurance policy is:

  • Short term income protection insurance (24 months)
  • 4-week deferred period (pays out after 1 month of absence)
  • Guaranteed premiums (fixed premiums)
  • Underwritten income protection insurance

There are several other cover options for income protection insurance (e.g. long-term, age rated, reviewable premiums, guaranteed acceptance and 0 weeks to 12 months deferred periods).

The top 5 income protection insurance providers according to research by Defaqto are:

  1. Aviva (Trustpilot score: 4.0 out of 5.0)
  2. British Friendly Society (Trustpilot score: 4.1 out of 5.0)
  3. LV= (Trustpilot score: 4.5 out of 5.0)
  4. Royal London (Trustpilot score: 4.0 out of 5.0)
  5. Shepherds Friendly (Trustpilot score: 4.3 out of 5.0)
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Our Mission: To provide easy access to fair pricing, affordable protection and the very best financial security to families and individuals. We are dedicated to offering comprehensive insurance solutions that safeguard the well-being of our policyholders. Guided by integrity, transparency, and a commitment to excellence, we strive to empower consumers and families to face the future with confidence. Our mission is not just about policies; it's about protecting dreams, ensuring legacies, and being a trusted partner on life's journey.

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