If you’ve read my previous article about AIG you’ll know that they’re big, they’re American, and they’re over here; you’ll also know what they offer in the way of Life Insurance policies, including their pay out statistics and the extras that they’re trying to entice you in with. But what about when it comes to Critical Illness cover? How good is AIG’s Critical Illness Cover? Well, I’m glad you asked….
Firstly, Let’s look at the numbers…
- Critical Illness Cover – In 2018 AIG paid out on 94% of its Critical Illness claims, with the highest pay out being around the £500,000 mark. A total of 318 claims were made, equalling a total of £24.8m, with the most common illnesses being cancer (68%), stroke (11%), heart attack (5%), multiple sclerosis (4%), and benign brain tumour (2%).
If you did read my article on AIG and Life Insurance, you’ll have noticed that the percentage of Critical Illness cases paid out is lower. This is generally the case across the board with insurance companies.
The reasons why…
Non-disclosure, which is a fancy way of saying that some policyholders perhaps weren’t too forthcoming with information regarding their smoking habits, or the fact that every male going back 18 generations have all suffered from the same horrible illness.
(the only thing you need to mention is non-disclosure)
How good is their cover?
AIG split their policy in two part, illnesses which they will pay out ‘all’ your money for and illnesses which they will only pay out ‘part’ of your money.
They cover 46 different illnesses resulting on you getting ‘all’ your money… to make things nice and simple I have listed them all below
- Aorta graft surgery
- Aplastic anaemia
- Bacterial meningitis
- Benign brain tumour
- Benign spinal cord tumour
- Brain injury due to anoxia or hypoxia
- Cardiac arrest
- Coronary artery bypass grafts
- Creutzfeldt-Jakob disease
- Dementia including Alzheimer’s disease
- Heart attack
- Heart surgery
- Heart valve replacement or repair
- HIV infection
- Intensive care
- Liver failure
- Loss of hands or feet
- Loss of speech
- Lung disease
- Major organ transplant
- Motor neurone disease and specified diseases of the motor neurones
- Multiple sclerosis
- Neuromyelitis optica (Devic’s disease)
- Paralysis of limbs
- Parkinson’s disease
- Parkinson plus syndromes
- Primary pulmonary arterial hypertension
- Pulmonary artery replacement
- Severe Crohn’s disease
- Severe mental illness
- Spinal stroke
- Surgical removal of an eyeball
- Systemic lupus erythematosus (SLE)
- Third degree burns
- Traumatic brain injury
- Ulcerative colitis
- Loss of independence
If you were unfortunate enough to get one of these illnesses, before AIG pay out, you’ll need to be ‘ill enough’.
How ‘ill’ you need to be, can be found in their key feature’s document or their website. They are known as the ‘definition’ of an ‘illness’.
For example, AIG’s definition of a Cardiac Arrest is –
Cardiac arrest – with insertion of a defibrillator
This leads me on to my next point, there are illnesses AIG cover (not listed above) which have more lenient definitions i.e. basically, you don’t have to be as ‘ill’, however because they are easier to claim on… you won’t get ‘ALL’ your money!
These easier to claim on illnesses are called ‘Partial Payments’…
AIG offer 38, listed below:
- Accidental hospitalisation
- Carotid artery stenosis
- Central retinal artery or vein occlusion (Eye stroke)
- Cerebral or spinal aneurysm
- Cerebral or spinal arteriovenous malformation
- Crohn’s disease
- Diabetes mellitus Type 1
- Gastrointestinal stromal tumour (GIST) of low malignant potential
- Less advanced cancers – (20 different types)
- Neuroendocrine tumour
- Permanent pacemaker insertion
- Pituitary gland tumours
- Severe sepsis
- Significant visual impairment
- Single lobectomy
- Skin cancer (not including melanoma)
- Syringomyelia or syringobulbia
The maximum amount paid out for one of these Illnesses is the lower of either 50% of your total amount of cover or £35,000.
Anyone covered by the policy can claim for each of these illnesses once without it affecting what AIG will pay on a successful ‘Full’ claim for a Critical Illness in the future.
For example, if you had a £100,000 Critical Illness policy, and you received a Partial Payment of £35,000 for a Crohn’s disease claim, this would not come off your £100,000, nor would it cancel your policy or put your premiums up… it’s essentially a ‘FREE’ pay-out.
FREE children’s cover
AIG will automatically insure any children you have for specific child related illnesses FREE of charge. The maximum pay-out for these conditions is up to £35,000. This is your money to have as parents so you can take time off work and focus on your child getting better.
There’s no limit on how many children can be covered under one policy, which is good news if you’re a bit like the Von Trapp family, however, children’s Critical Illness benefit is only payable once per child. But what about if something even more terrible were to happen?…
…Child Life Cover
Horrible to even have to mention, obviously, again for FREE, if your child were to die during the term of the cover, AIG will pay out £10,000 to cover funeral expenses etc. If your child is diagnosed with a terminal illness, they will pay the child life cover benefit early, allowing you to spend quality time with your family and make some memories.
Additional benefits included in their plan… for FREE
Ok, so you should have a good understanding now about the quality of AIG’s cover, but what about the extra things they do? The unique selling points that can make all the difference to a customer saying, “Yep, I’ll go with them,” or continue to shop around?
Let’s have a look…
- Pregnancy Cover – under your Critical Illness cover you will also be offered some protection when it comes to pregnancy complications. AIG will pay out a sum of £5,000 per pregnancy for a defined complication. If the claim is made due to foetal death in utero, neonatal death or stillbirth, the sum will be paid per foetus or child.
- Best Doctors – this is an amazing ‘freebie’, should you be diagnosed with a Critical Illness and you have been given an ‘opinion’ by an NHS Doctor regarding treatment, if you call AIG, they will contact the ‘Best’ Doctor from around the world who specializes in that illness to get you a 2nd medical ‘opinion’ for FREE! You will then be sent a report which you can take to the NHS and ask them to follow it instead.
- Smart Health – this is a FREE virtual GP you can access from your phone. You simply download their app, which gives you access to call a GP anytime, 24/7. They can help diagnosed your condition and even refer you onto a specialist or order medication to your local surgery.
I have created a bitesize table below which will give you a snapshot of their cover:
|Partial/ Additional Payments||38|
|Kids Specific Illness Covered||10k|
|Children’s Funeral Benefit||10k|
If you would like a FREE AIG quote, please pop us a call to speak to me or my team.
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