Did The Flagship AIG Critical Illness Plan Just Improve Further?
AIG Insurance recently revised its YourLife Plan to include over 80 conditions.
Alan Lakey, Director of C. I Expert and a respected expert in the UK on Critical Illness Insurance commented that the cover is now the “most comprehensive critical illness plan in the market”.
The updated policy from AIG follows the Best Practice on Wording for Critical Insurance policies set out by the Association of British Insurers (ABI).
The earlier policy from 2015 covered 48 conditions, 40 of which were paid out in full. Eight conditions were eligible for partial payments, and no conditions were specific to children.
This new policy addresses customers’ needs in its 80+ conditions for adults and children, paying out in full for 43. Thirty of the listed conditions result in partial payments, and it now includes seven conditions for children set out in Group 3 of the Critical Illness Plan.
Child-Specific Conditions Covered Include:
- Cerebral palsy
- Child’s diabetes mellitus Type 1 – Requiring permanent insulin injections
- Child’s intensive care benefit – Requiring mechanical ventilation for seven days
- Cystic fibrosis
- Down’s syndrome
- Muscular dystrophy
- Spina bifida
Group 3 is one of the most valuable tools for parents or anyone starting a family. Knowing that you won’t be reliant on state benefits if your child is diagnosed with conditions requiring adaptations to the home, additional support, and any other financial costs, you won’t be reliant on state benefits.
Changes to adult cover
The revised critical illness protection plan has also enhanced adult cover to cover more cancer types, including skin, cervical, and prostate cancer, which are considered less advanced. If someone suffers from less advanced cancer on multiple occasions, they will also pay out numerous times.
New conditions added paying out in full include:
- Anoxia/Hypoxia – Causing the death of brain tissue & permanent neurological deficit
- Benign Spinal Cord Tumour – If surgically removed or causing permanent neurological deficit
- Crohn’s Disease – If treated by more than one intestinal resection
- Parkinson Plus Syndromes – A heading encompassing five progressive neurological conditions that generally cause a permanent deficit
- Spinal Stroke – Death of spinal cord tissue causing permanent neurological deficit
- Ulcerative Colitis – Treated by colectomy (surgical removal of the bowel)
- Coverage for numerous types of skin cancer
Additional Payment Conditions Extended to Include:
- Cerebral Aneurysm – Extended to cover aneurysms of the spine
- Cerebral Arteriovenous Malformation – Extended to cover Spinal Arteriovenous Malformation (AVM)
- Significant Visual Impairment
The thirty additional payment conditions will pay 25% of the total sum insured on the policy, up to the value of £25,000.
The Verdict
The AIG announcement to revise its coverage is undoubtedly a bold move, and it will likely set a new industry benchmark.
Only time will tell, but as 2025 progresses, other insurance firms are likely to follow suit, revise their plans, and examine the reality of what people need.
AIG life insurance has hit the mark. It is addressing the financial worries of soon-to-be parents. For adult coverage, no other policy (currently) will cover as many types of cancers as those in situ areas of the body.
The new policy covers eighteen cancers in situ and tumours requiring surgery to remove.
The new plan is now the most comprehensive for cancer and Child-Specific conditions.
Steve Case is a seasoned professional in the UK financial services and insurance industry, with over twenty years of experience. At Insurance Hero, Steve is known for his ability to simplify complex insurance topics, making them accessible to a broad audience. His focus on clear, practical advice and customer service excellence has established him as a respected leader in the field.
