AIG Life Group Critical Illness (Protection Review: Gold)

August 2021 AIG Life: GCI


AIG Life has unveiled its new group critical illness (CI) insurance proposition, which has consolidated the conditions covered into 27 broader conditions across eight groupings.

AIG previously said it had ‘checked out’ of the critical illness conditions race on its individual plans with the introduction of umbrella headings incorporating more than 20 conditions.

Now, under the new group CI proposition, there are now eight headings, which focus on specific surgeries or on the impact on daily life for employees, rather than on the name of the illness. The headings are:

Degenerative neurological disorder.

Reduced heart function.
Surgery to the heart, aorta, or pulmonary artery.
Surgery via the skull.
Brain injury.
Loss of use of a limb.
Lung disease or removal.
Blindness or removal of an eyeball.

There are also 21 standalone conditions that AIG says would not make sense to group together.

Also included are updated flexible benefit terms through the removal of benefit level limits at flexible benefit windows and lifestyle events, the option to add total permanent disability and group CI cover for employee partners. Children's Cover is included as standard, as is access to AIG Life's digital health and wellbeing service, Smart Health.

Comment: The CI market has long seen trends come and go and, not that long ago, found itself being perceived as ever more complex as each insurer looked to offer more conditions than the next. Eventually that started to affect sales and advisers found it harder and harder to compare insurers, short of also becoming a medical doctor. 

Led by the individual market, the trend now – and one we very much welcome – is towards simplifying and grouping similar conditions under a single more generic description. It’s not a perfect solution, but it’s certainly a big improvement.

The group market is traditionally more conservative, but AIG has now turned its simplifying focus on its group CI plan too and again it makes good sense to do so.

The conditions counters will shake their heads but, if you’re a condition counter, you’re really in the wrong business! Most importantly, simplification makes sense to buyers and in the group sector that means both employers and employees.

Plus points: A simplification of what’s covered into broader groups; Makes more sense to employers, employees and advisers.

Not so plus points: Conditions counters will be disappointed (good!) .


Rating (max 10): Overall: 8. Gold

Tags: GCI: AIG Life

I Mark: No

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