AIG Life has launched a 15-minute application process for Royal Bank of Scotland (RBS) customers as the firms announced a new partnership.
The simplified process means most of the RBS, NatWest and Ulster NI customers taking out life insurance will be asked just 11 questions, with the majority being offered instant cover without the need for medical evidence.
It comes after AIG was named sole provider of life insurance products by the banking group.
The products available through the partnership are life insurance, critical three with life, and a guaranteed acceptance whole-of-life insurance product called Guaranteed Sixty Plus.
Customers can buy cover online, in branch or over the telephone, while an online life insurance calculator has been made available to help them work out how much cover they need and which type best suits their needs.
Adam Winslow, chief executive of AIG Life, said: “We are delighted that RBS chose us to protect Royal Bank of Scotland, NatWest and Ulster NI customers. This is our biggest partnership to date and I am very proud of the proposition that we have developed together for launch.
“I’m also looking forward to working together with RBS to continue to innovate for the benefit of customers as our partnership grows.”
Emma Thompson, life office relationship director at Lifesearch, said: “This looks a positive move - simplifying products and processes typically helps consumers buy which is a good thing.
“There's often a trade off though when it comes to fewer questions as it usually means higher prices, but if it helps more clients get cover in place easily, and these clients are attracted by a simpler process that's still a positive.
“I'm not aware of the specific details yet on the 60-plus product, but the concept of revising the over-50 style product and replacing with an over 60s, even 70s concept is something I've spoken to AIG and others about - given people can still be fit, healthy and active well into their 50s.
“Fifty just isn't 'old' anymore. As a result, the over-50s products can be poor value for money for many.
"So I am pleased AIG have decided to do this and think this should be better for today's consumers. It'll be interesting to see how they've priced this.
“So overall, I think this is welcome news - banks can have a hugely positive impact on helping raise awareness of the need for protection, so this partnership has the potential to grow the market and get more people valuable cover in place.”
simon.allin@ft.com
