AIG Direct All Cancer Cover
AIG Direct’s All Cancer Cover plan is a simple cancer cover plan that provides a cash lump sum on diagnosis of a covered cancer. The plan is underwritten by AIG Europe. Key features include:
Cash lump sum paid on diagnosis (minimum benefit £25,000) of a specified cancer. That includes leukaemia, Hodgkin’s lymphoma and non-Hodgkin’s lymphoma, carcinoma in situ of the breast, malignant melanoma and any malignant tumour. The payment is made on first diagnosis of a cancer at a new primary site.
Access to a specialist cancer support service. This includes a helpline and counselling.
Cash lump sum of £1,000 paid on diagnosis of a carcinoma in situ of any part of the body other than the breast and skin cancers other than malignant melanoma.
Hospital benefit of £50 a day, up to 90 days, due to cancer.
Full cover 90 days after taking out the plan.
Children under 18 are covered at no extra cost
Written as a general insurance plan, so Insurance Premium Tax (IPT – at 6%) is included in the premium payable).
Available to UK residents from age 18 to 69. The plan lasts to age 75.
Available online only.
Pre-existing conditions are excluded (with a 24 month lookback period).
Benefits can be changed by the insurer at 30 days’ notice.
Exclusions are minimal, although no benefit is paid to customers who are a terrorist organisation (sic) or narcotics trafficker.
Four cover levels are available from £25K to £100K. A customer age 30 would pay £8.48 a month for £25K cover, £17.99 for £50K cover and £27.99 a month for £75K cover. Maximum cover (Platinum Plus) is £100,000. Premiums increase with age and smokers pay higher premiums.
Comment: One of the big plusses of this plan is that it is simple to buy, with no medical questions or questions about family history. Instead, pre-existing conditions are excluded and there is an initial 90 day waiting period before benefits become payable.
Unlike many standalone critical illness policies, there is no survival period, although the customer must be alive when the diagnosis of cancer is made. And children are covered free.
That’s pretty much it so far as the good news goes though. The plan does not cover any of the other illnesses a critical illness policy would normally cover – even benign brain tumours. There is a choice of just four sums insured and no mention of using trusts in the literature we read. Premiums are subject to IPT and, being a monthly renewable plan, subject to IPT. AIG can change terms by giving just 30 days’ notice in certain circumstances (if claims are unexpectedly high for example).
In conclusions, we can see how this plan will appeal to people scared of the C word (OK, that’s probably most people) and, in some circumstances, the plan’s cover and simplicity will have appeal. But the downsides are just too great and why would anyone only want to be paid out only if they get cancer and not some other equally serious life-threatening condition?
Plus points: Simple to buy and understand; Benefits payable after just a 90 day initial waiting period; Smaller payment on most carcinomas in situ; Good support services; No medical or family questions; Children covered free; No post-diagnosis minimum survival period.
Not so plus points: Only covers cancers and not other, equally life-threatening critical illnesses; Terms can be changed at 30 days’ notice; Premiums increase with age and are subject to IPT; Only four sum insured levels available with a maximum benefit of £100,000 – below many people’s mortgage liability; No mention of trusts in the literature.
Website: www-401.aigdirect.co.uk.
Rating (max 10): Innovation: 8. Overall: 5. Bronze
Tags: Other; AIG Direct