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Did The Flagship AIG Critical Illness Plan Just Improve Further?

AIG Insurance recently revised their YourLife Plan to now include over 80 conditions.

aig life insurance logoAlan 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 2013 covered 48 conditions, 40 of which paid out in full. Eight conditions were eligible for partial payments and no conditions were specific to children.

This new policy addresses the needs of customers in its 80+ conditions for adults and children, paying out in full for 43 of those. 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

The addition of Group 3 is one of the most valuable for parents or anyone starting a family. Knowing that should your child be diagnosed with any conditions that will require perhaps adaptations to the home, or additional support, and any other financial costs, you won’t be reliant on state benefits.

Changes to adult cover

Adult cover has also been enhanced in the revised plan to cover more cancer types including skin, cervical, and prostate cancer considered less advanced. Should someone suffer from less advanced cancer on multiple occasions then they will also pay out multiple times.

New conditions added paying out in full include:

  • Anoxia/Hypoxia – Causing 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 permanent deficit
  • Spinal Stroke – Death of spinal cord tissue causing permanent neurological deficit
  • Ulcerative Colitis – Treated by colectomy (surgical removal of the bowel)

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 their coverage is certainly a bold move and one that’s likely to set a new benchmark for the industry. Only time will tell but as 2016 progresses, it is likely to see other insurance firms follow suit, revise their plans and look at the reality of what people really need.

AIG have hit the mark. They are addressing the financial worries of soon to be parents, and for adult coverage, there’s no other policy (currently) that will cover as many types of cancers, and those in situ areas of the body. Eighteen cancers in situ are covered in the new policy and tumours requiring surgery to remove are covered too.

The new plan is now the most comprehensive for cancer and for Child-Specific conditions.

Related Information:

Critical Illness Cover Explained

Using Critical Illness Cover to Supplement Life Insurance