Life InsuranceNov 9 2015

AIG unveils care cover with whole of life insurance

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AIG unveils care cover with whole of life insurance

AIG Life has launched a whole of life insurance offering, which is designed to protect the assets of customers no longer able to live independently or who wish to leave a financial legacy to loved ones when they die.

Customers aged between 17 and 84 years can buy up to £400,000 of AIG Care Cover with whole of life insurance.

AIG added that they can receive 75 per cent of the sum assured (up to £300,000) as care cover benefit if the insured person is diagnosed with a medical condition, which means they are permanently unable to complete three or more everyday taks as defined by AIG Life, or as having severe cognitive impairment.

Additionally, should the insured person not need to claim the care cover benefit, the insurance will pay 100 per cent of the sum assured if the insured person dies or is diagnosed with a terminal illness.

AIG Care Cover with whole of life insurance can be bought to insure one person or to insure a couple, and can pay out on joint life first event or on second event basis, and the care cover benefit can also be claimed at any age.

This cover also comes with access to Best Doctors, the second opinion medical service, as well as access to the claims support fund, and can be put into trust online without the need for signatures, to assist with estate planning.

The firm developed this new offering after research it commissioned suggested consumers are uncertain how they would pay the care costs they could incur if they suffer an illness which brings permanent and lasting changes to their independence.

Steve Casey, head of marketing and propositions at AIG Life, said: “Our consumer research found half of those questioned believe we are facing an elderly care crisis.

“Yet 25 per cent of people said they would probably have to sell their homes to pay for life-long care if they needed it and 11 per cent don’t know how they would fund the cost at all.

“AIG Care Cover with whole of life insurance has been designed to give customers peace of mind that there is a plan in place to help with these costs if they should be unfortunate enough, at any age, to need life-long care, and to provide a life insurance legacy for loved ones if they don’t.”

Alan Lakey, partner of Hemel Hempstead-based IFA Highclere Financial Services, said: “AIG has shown a refreshing appetite for exploring new areas. This is an instance of an insurer reacting sensibly to demographic changes.

“One of the consequences of people living longer is that the incidence of dementia and other neurological conditions has been increasing.

“Cover care is an enhancement to the existing whole of life plan which enables planholders to receive 75 per cent of the sum assured if unable to perform at least three of six stipulated activities such as washing and dressing.

“The funds can be used to purchase private care, meet care/nursing home costs or to facilitate structural changes to a property.

“Unlike a life assurance where somebody else benefits, this offers the planholder personal access to the funds.”