Review: AIG Life Insurance

Ronny Lavie By Ronny Lavie

Key policy features

  • Children (whether you have them now or in the future) are covered automatically
  • AIG has flexible cover options to suit individual needs
  • Policies are purchased through a personal financial adviser
  • Business cover is available


AIG (American International Group, Inc.) is one of the most well-known international insurance companies, with customers in more than 100 countries. AIG Life Limited is the life insurance division of AIG in the UK, and provides cover and support for families, individuals and businesses.

You can purchase AIG Life products through your financial adviser, if you don't have one AIG recommends using the site to find an adviser.

You can compare AIG Instant Life Insurance quotes with other providers on specialist comparison site

Learn more about life insurance with our guide to the best providers.

Overview of the cover provided by AIG Life Insurance in the UK

AIG Life’s main life insurance product is YourLife Plan. It offers several levels of cover:

Term Assurance is the simplest of life insurance cover options. It pays out a lump sum if the person covered dies or is diagnosed with a terminal illness (with a life expectancy of less than 12 months). You can choose the amount you want to be covered for at the start of the policy and can set whether it stays at the same level for the life of the policy, increase each year or decrease each month.

Critical Illness Cover pays out in the event of death, terminal illness or serious illness. It is available to people aged 17 to 75 and has a minimum term of 3 years and a maximum of 50 years.

Critical Illness with Term Assurance covers a total of 80 conditions and operations, including heart attack, stroke, MS and cancer.

Children (whether you have them now or in the future) are automatically covered. A parent can claim up to 50% of the value of their policy (up to £25,000) if their child is diagnosed with one of the illnesses covered under the policy. Seven child-specific conditions are also covered, including type 1 diabetes and Down’s syndrome. A double payment, up to £50,000, is paid out if treatment for the condition is only available overseas and £5,000 is offered in case the child dies during the course of the treatment.

Income Protection pays up to 50% of your earned income if you are too sick to work. AIG also offers help getting back to work and support for parents who leave work to provide care for their ill or disabled child.

At the start of the policy, you can choose the amount that will be paid out each month in the event of a claim, as well as whether it changes or stays the same throughout the term of the policy.

Family Income Benefit is similar to Term Assurance, but pays your family a monthly amount, instead of a lump sum. The amount paid out monthly is chosen by you.

Low Start offers lower premiums for the first few years of cover, making it more affordable initially. There are two options of cover available – life insurance only and life insurance and critical illness (see above for details).

Instant Life Insurance is the only AIG policy available on price comparison websites. It pays out in the event of death or terminal illness and is available to people aged 17 to 55. The maximum amount of cover available to those aged 17 to 45 is £600,000, and £350,000 to those aged 46 to 55. The minimum policy term time is 3 years and the maximum is 40.

Compare AIG Instant Life quotes on specialist comparison site

Other AIG policies include:

Care Cover with Whole of Life Insurance, which pays out if you suffer from an accident or illness that results in you requiring life-long care. AIG will pay out 75% of the amount you are insured for if you are no longer able to live independently, regardless of your age. If a care cover claim is not made, 100% of the amount you are covered for will be paid out if you die or are diagnosed with a terminal illness (with a life expectancy of less than 12 months).

AIG will also fund a potential inheritance tax bill, protect your assets and contribute to funeral costs. This policy is available to people up to 84 years old, with a maximum cover sum of £400,000. Cover can be tailored to your individual needs.

This policy is also available as Whole of Life Insurance only, meaning it will pay out a lump sum if you die or are diagnosed with a terminal illness (higher levels of cover are available than with YourLife policies), but will not pay out for care cover in case you require life-long care.

Options such as waiver of premium and cover if you suffer from a disability are available for an additional cost.

Policies can be taken out as Single Life (covering only one person) or Joint Life (covering two people). However, only one payout will be made per policy, after which the cover will stop.

Cover for businesses is also available.

AIG Life’s policies can only be purchased through financial advisers (with the exception of Instant Life Insurance).

Read our guide to the best life insurance providers to see how AIG's cover compares with other providers.

How much does life insurance cover from AIG cost?

The cost of life insurance is dependent on a variety of personal factors, such as your age, existing medical conditions and the level of cover required. However, because most of AIG Life’s policies are only available through a financial adviser you will be given advise on which policy suits you best.

What do AIG Life Insurance customer reviews say?

We were not able to find online customer reviews for AIG’s Life Insurance service in the UK.

On its US website, AIG Life Insurance says it received 4.7 out of 5 stars, based on over 1,700 reviews.

What do AIG Life Insurance reviews by the experts say? says AIG Life Insurance paid out 91.6% of claims and it scored the company 81% for complaints handling and 76% for transparency. This placed the company last on a list of 25 life insurance providers. However, AIG’s scores for complaints and transparency were higher than many other companies on the list it seems to have been dragged down by the percentage of claims paid. Most other firms ranked by Fairer Finance paid out more than 98% of claims.

In our own top 10 of the best life insurance providers, AIG came 9th in the list of providers for Whole of Life Insurance.

Independent financial review service Defaqto gave AIG’s Whole of Life policy five out of five stars. It rates the quality and comprehensiveness of a policy and five stars means it is "an excellent product with a comprehensive range of features and benefits". Defaqto awarded the Care Cover with Whole of Life Insurance policy four stars, which means it is "a product with a good level of features and benefits".

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