AIG Life has transformed its Over Fifties Life Plan into a mainstream broker product in what it claims is an industry-first for this type of cover.
The move comes in response to the growing popularity of the plans due to rising funeral costs, people’s desire to leave a small legacy to their loved ones and their wish to ensure their families are not burdened with outstanding debts.
Up until now, the products have been sold direct to the consumer online, through magazine inserts and via daytime television marketing campaigns.
AIG’s Over Fifties Life Plan offers a protected benefit, meaning that when the customer has paid at least half of the expected premium payments, they will keep a pro-rata sum assured if they do not continue paying premiums.
It also comes with a funeral pledge to pay the family's funeral director or home up to £10,000, or the claim value if less than £10,000, in advance on all valid life insurance claims without waiting for probate.
An inflation option enables the premium and sum assured to increase in line with the retail prices index measure of inflation by up to 10 per cent each year.
As with all AIG Life products, it also provides access to the Best Doctors service.
Vicky Churcher, intermediary director at AIG Life, said: “We spoke with lots of advisers and have created a new revenue stream for them in an increasingly important market sector.
“By turning our Over Fifties Life Plan into a standard adviser product, we’re offering them the opportunity to write more protection business and are enabling them to advise their customers on this product area.”
Ian Sawyer, managing director at Buckinghamshire-based Assured Futures Adviser, said: “This type of simple protection for the over fifties is growing in demand and importance.
"It is great to see more mainstream insurers taking this market seriously and we are delighted with the steps AIG have taken.
“The combination of protected benefits, indexation, Best Doctors and keen affordable premiums makes this a new market leader.”
simon.allin@ft.com
