Navigating the world of life insurance can feel overwhelming. With so many providers, policies, and jargon-filled documents, choosing the right protection for your family or business is a significant decision. AIG (American International Group) is one of the biggest names in the global insurance industry, but how does its UK offering, AIG Life, truly measure up in 2025?

This definitive guide will walk you through everything you need to know about AIG's UK life insurance, critical illness cover, and income protection. We'll delve into their product features, explore their highly-regarded value-added benefits, and see how their pricing and policies compare to other leading UK brands.

WeCovr reviews AIG’s UK life products, benefits, and pricing compared to other leading brands

As independent protection specialists, our job at WeCovr is to scrutinise the market to find the best possible cover for our clients. We work with all the major UK insurers, including AIG, Aviva, Legal & General, and Zurich. This gives us a unique, impartial perspective on where each provider excels.

AIG Life has carved out a strong reputation in the UK for its comprehensive cover, innovative approach to customer wellness, and a solid track record for paying claims. They are often seen as a high-quality provider that offers more than just a financial payout, focusing on supporting customers' health and wellbeing throughout the life of their policy.

Let's break down what makes AIG a compelling choice for many in 2025.

Who is AIG Life Insurance? A Snapshot for 2025

AIG Life Limited is the UK-based life insurance arm of the American International Group, a global finance and insurance corporation with a history stretching back over a century. In the UK, AIG Life has established itself as a forward-thinking and reliable provider since its launch in 2015, following the acquisition of Ageas Protect.

Financial Strength and Trust

When you buy a life insurance policy, you're buying a promise that could be fulfilled decades in the future. Therefore, the financial strength of the insurer is paramount. AIG has consistently strong financial ratings from independent agencies, indicating a robust ability to meet its long-term financial obligations.

More importantly for UK customers, AIG Life has a demonstrable commitment to paying claims. In 2023, they published impressive claims statistics:

• 99% of life claims paid
• 94% of critical illness claims paid
• 92% of income protection claims paid

These figures, totalling over £235 million paid out to thousands of families and individuals, provide crucial peace of mind. They show that when it matters most, AIG stands by its promises.

Awards and Recognition

The insurance industry recognises excellence through various awards and ratings. AIG consistently receives high ratings from independent bodies like Defaqto, which scores products based on the quality and comprehensiveness of their features. Many of AIG's products hold a 5-Star Defaqto rating, signifying they are among the best in the market.

AIG's Core Protection Products: A Deep Dive

AIG offers a complete suite of personal and business protection products. Let's explore the core offerings for individuals and families.

AIG Term Life Insurance

This is the most straightforward form of life insurance. You choose a lump sum to be paid out and a policy term (e.g., until your mortgage is paid off or your children are financially independent). If you pass away during the term, the policy pays out to your loved ones.

AIG offers the two main types:

• Level Term Assurance: The payout amount remains the same throughout the policy term. This is ideal for covering an interest-only mortgage or providing a financial legacy for your family.
• Decreasing Term Assurance: The payout amount reduces over time, broadly in line with a repayment mortgage or other loan. Because the potential payout decreases, premiums are typically lower than for level term cover.

Key Features:

• Generous Terms: Cover can run up to age 90.
• Waiver of Premium: This optional add-on covers your premiums if you're unable to work for more than 26 weeks due to illness or injury, ensuring your policy remains active.
• Terminal Illness Cover: Included as standard. If you are diagnosed with a terminal illness with a life expectancy of less than 12 months, AIG will pay out the full sum assured early.

Real-Life Example: The Miller Family David and Chloe, both 35, have a £300,000 repayment mortgage and two young children. They want to ensure that if one of them were to pass away, the other could clear the mortgage and have funds to support the children. They take out a joint decreasing term assurance policy from AIG for £300,000 over a 25-year term. This is a cost-effective way to protect their single biggest liability.

AIG Critical Illness Cover (CIC)

A critical illness diagnosis can be financially devastating, often meaning you have to stop working while facing increased costs for treatment and home adaptations. AIG's Critical Illness Cover is designed to provide a tax-free lump sum on diagnosis of a specified condition, giving you financial breathing space.

AIG's proposition is particularly strong in this area:

• Comprehensive Definitions: They cover over 80 conditions, including 49 full payment conditions and 38 additional (partial) payment conditions. This is one of the most extensive lists on the market.
• Focus on Core Conditions: They provide enhanced definitions for the most common reasons for claims: cancer, heart attack, and stroke.
• Children's Critical Illness Cover: Included as standard at no extra cost, covering children from birth to age 22. It provides a payout of up to £30,000 or 50% of the adult's cover, whichever is lower.
• Advanced Cancer Cover: AIG provides cover for 81 types of cancer classified as 'advanced', offering greater certainty at the point of claim.

AIG Income Protection (IP)

Often considered the foundation of any financial protection plan, Income Protection (IP) pays a regular, tax-free monthly income if you are unable to work due to illness or injury. It's your financial safety net against the unexpected.

AIG's income protection is highly flexible and a strong contender in the market:

• Own Occupation Definition: For most professions, AIG offers the 'own occupation' definition of incapacity. This is the gold standard. It means the policy will pay out if you are unable to perform your specific job, not just any job. This is crucial for skilled professionals, surgeons, tradespeople, or anyone in a specialised role.
• Flexible Deferred Periods: You can choose how long you wait before the payments start, from as little as 4 weeks up to 52 weeks. A longer deferred period means a lower premium.
• Choice of Payout Terms:
  • Full Term: Pays out until you recover, your chosen retirement age, or the policy term ends.
  • Short Term (Limited Payment Term): A more budget-friendly option that pays out for a maximum of 1, 2, or 5 years per claim. This is often sold as 'Personal Sick Pay' and is popular with tradespeople and those in riskier occupations.
• Guaranteed Insurability Options: Allows you to increase your cover without further medical questions at key life events, like getting married, having a child, or getting a mortgage.

AIG's Value-Added Benefits: More Than Just a Payout

In 2025, the best insurance policies offer proactive support to help you stay healthy, not just a reactive payout when things go wrong. This is where AIG truly shines with its Smart Health service.

Available to all AIG policyholders and their immediate families (partner and children up to age 21) from day one and at no extra cost, Smart Health is a comprehensive health and wellbeing hub.

What's included in Smart Health?

• 24/7 UK-based Virtual GP: Get unlimited access to a GP by phone or video call, anytime, anywhere. This can save weeks of waiting for an NHS appointment for non-urgent issues. Prescriptions can be sent directly to your local pharmacy.
• Second Medical Opinion: If you or your family member receives a serious diagnosis, an independent network of world-leading specialists can review your case and provide a detailed second opinion report. This can provide clarity, reassurance, or alternative treatment options.
• Mental Health Support: Access up to four sessions of therapy or counselling per condition, per year. This support covers issues like stress, anxiety, depression, and bereavement. In a world where NHS mental health waiting lists are long, this is an invaluable benefit.
• Fitness and Nutrition Plans: Get tailored online programmes to help you achieve your health, fitness, and dietary goals. This proactive support helps you improve your long-term wellbeing.
• Health Check: A yearly online questionnaire that provides a personalised report on your health and suggests areas for improvement.

The value of Smart Health cannot be overstated. It provides tangible, everyday benefits that can improve your quality of life and potentially prevent serious health issues from developing.

How Does AIG Compare to Other UK Insurers in 2025?

AIG operates in a competitive market alongside other giants like Aviva, Legal & General, Zurich, and Royal London. So, how do they stack up?

AIG vs. Aviva vs. Legal & General: A Feature Showdown

Pricing is always specific to the individual, but we can compare the core features of their flagship products.

Table 1: Core Product Feature Comparison (Illustrative)

Note: This is a simplified comparison. The exact details can vary by specific plan and underwriting.

Key Takeaways:

• Critical Illness: AIG is a market leader in the breadth of conditions covered, particularly with their additional payment conditions.
• Flexibility: All three offer strong, flexible products, but the specifics of their definitions and options can differ. This is why expert advice is crucial.

Value-Added Benefits Compared

This is a key differentiator in the modern market.

Table 2: Value-Added Services Comparison

Key Takeaways:

• AIG's Smart Health is arguably one of the most comprehensive and well-integrated packages available.
• Most top-tier insurers now offer some form of virtual GP service, but the breadth of additional support (like mental health sessions and fitness plans) varies significantly.

Pricing: Is AIG Competitive?

AIG is generally positioned as a high-quality provider rather than a budget option. Their premiums often reflect the comprehensive nature of their cover and the extensive value-added benefits.

However, they can be surprisingly competitive, especially for:

• Younger applicants in good health.
• Certain occupations, including some considered higher risk.
• Applicants who want combined Life and Critical Illness cover, where the value of the CIC definitions can justify a small price difference.

The crucial point is that the cheapest policy is rarely the best. A policy that costs £2 less per month is poor value if it fails to pay out because of a restrictive definition. At WeCovr, we help you understand the true value of a policy. Our advisers conduct a full market analysis to find the cover that offers the best combination of price, features, and reliability for your unique needs.

Specialist Cover from AIG: For Business Owners and High-Net-Worth Individuals

AIG's expertise extends beyond personal protection into the more complex world of business and estate planning.

Key Person Insurance

What would happen to your business if your top salesperson, genius developer, or even you as the director were suddenly unable to work due to death or critical illness? Key Person Insurance is a policy taken out by the business on the life of a crucial employee. The payout goes to the business to cover lost profits, recruit a replacement, or repay loans. AIG's life and critical illness policies are well-suited for this purpose.

Executive Income Protection

This is a form of income protection paid for by a company for its directors or key employees. Unlike a personal policy, the premiums are typically a tax-deductible business expense, and the benefit is paid to the company, which then distributes it to the employee via PAYE. It's an excellent way to attract and retain top talent while protecting the business. AIG offers strong Executive IP products with high benefit limits.

Gift Inter Vivos & Inheritance Tax (IHT) Planning

If you gift a significant asset (like property or a lump sum of cash) to someone, it may still be considered part of your estate for Inheritance Tax purposes if you pass away within seven years. This can leave your loved ones with an unexpected tax bill.

A Gift Inter Vivos policy is a special type of life insurance designed to cover this potential liability. It's essentially a term assurance policy where the sum assured decreases over seven years, mirroring the reducing IHT liability. AIG is one of the providers that offers solutions for this niche but vital area of estate planning.

The AIG Application and Claims Process: What to Expect

Applying for Cover

The application process involves answering questions about your health, lifestyle, occupation, and family medical history.

1. Full Disclosure: Honesty and accuracy are vital. Failing to disclose something, like a pre-existing condition or that you're a smoker, could invalidate your policy at the point of a claim.
2. Underwriting: AIG's underwriters will assess your application to determine your level of risk and calculate your premium. For larger sums assured or if you have health issues, they may request a GP report or a mini-medical screening.
3. Broker Support: Using a broker like WeCovr can make this process much smoother. We know what insurers are looking for and can help you present your application in the best possible light, especially if you have complex health or occupational circumstances.

Making a Claim

AIG is committed to making the claims process as straightforward and empathetic as possible. Their UK-based claims team is trained to handle claims with sensitivity. The Smart Health service, particularly the bereavement and mental health support, can also be a valuable resource for families during a difficult time.

The process typically involves:

1. Contacting the claims team.
2. Completing the necessary claim forms.
3. Providing supporting evidence (e.g., a death certificate or medical reports).

AIG's high payout rates are a testament to their fair and efficient claims philosophy.

Our Verdict: Is AIG Life Insurance Right for You in 2025?

AIG is a top-tier contender in the UK protection market. Their policies are robust, their definitions are comprehensive, and their commitment to customer wellbeing is evident through the excellent Smart Health service.

AIG is an excellent choice for:

• Families and Individuals who want more than just a cheque—they want proactive health support.
• Professionals and Company Directors who need the high-quality 'own occupation' definition for income protection.
• Business Owners looking for reliable Key Person or Executive Income Protection cover.
• Anyone who values the peace of mind that comes from a globally recognised brand with a strong claims record.

AIG may be less suitable for:

• Those on a very tight budget who are looking for the absolute cheapest cover available and are willing to forgo extensive benefits and broader definitions.

Ultimately, the "best" insurer is a personal decision based on your health, budget, and what you value most. The UK protection market is diverse, and a policy that's perfect for one person may not be right for another.

That's where we come in. At WeCovr, we provide the expert, impartial advice you need to compare AIG against all the other leading providers. We'll help you decode the jargon and find a policy that delivers real security and value for you and your loved ones.

What's more, we believe in supporting our clients' wellbeing in every way we can. As a WeCovr client, you'll receive complimentary access to our exclusive AI-powered calorie and nutrition tracker, CalorieHero. It’s our way of going the extra mile, helping you stay on top of your health goals every single day, in addition to the fantastic benefits provided by your insurance policy.

Frequently Asked Questions (FAQs)