AIG Life has unveiled changes that allow customers struggling with the cost of living to temporarily reduce protection insurance premiums.
The firm introduced the flexible policy option early in the pandemic to help customers who were facing financial uncertainty.
Under covid policy flexiblity, customers could request that their premium, sum-assured or benefit, be reduced for six months by self-certifying that they were struggling financially under coronavirus restrictions and provided their lower insurance cost was still above AIG’s minimum levels for the cover.
AIG has decided this support should carry on given the current economic conditions of rising energy bills and increasing inflation.
The firm said that it is open to any individual or business protection customer who needs financial support. Customers will not need evidence of financial hardship and they will not be asked to pay back the difference in payments when their premiums return to normal.
Facing financial challenges
Debbie Bolton, chief underwriter at AIG Life, said: “Covid restrictions have been lifted but as a nation we’re facing new financial challenges – from energy price hikes, rising interest rates or other cost of living increases.
“At the same time, we understand the valuable role that protection insurance plays in people’s lives and how important it is that they hold onto their cover. If something were to happen to them and they no longer have it in place, the financial implications could be much worse for their families and businesses.
“Our policy flex option has already helped other customers in need of support and we want to help ease the pressure now. If people are feeling the pinch or have money worries, we’d ask that they get in touch with AIG Life and talk to us about how we can help.”
Impact
Since its introduction in April 2020, AIG’s flexible policy option has already helped over 500 people who were struggling financially:
- 85% continued to be insured after their flexible option ended;
- 73% reverted to their original premiums, and benefit, after the six months;
- 11% stayed insured and kept their reduced insurance amount once the flex period ended; and
- 1% used a mid-term adjustment to change their benefit amount and premium.
