Individual protection customers can reduce premiums for six months and still remain insured
AIG Life customers with a life, critical illness or income protection insurance policy who reduce their premium will be covered albeit at a lower level.
At the end of the six-month period, the premium, and sum assured or monthly benefit, will automatically return to the previous levels immediately prior to this change being made, without underwriting or completion of any experiencing financial hardship.
AIG Life said: "We are receiving calls from many customers facing financial hardship, who are looking for ways to reduce their monthly outgoings. The policy flexibility we are announcing today enables customers to request a reduction to their premium for six months. We wanted to provide flexibility for an extended amount of time that could reasonably make a difference for our customers given the uncertainty created by the coronavirus pandemic."
The six-month premium reduction is available to customers who took out their policy before 1 January 2020 and can self-certify financial hardship while meeting AIG's terms and conditions.
The insurer said: "Typically, five pounds is the minimum premium most customers can pay. For some customers, it will be the lowest premium possible that does not breach the minimum sum assured limits for the specific product they have with us."
To be eligible for a premium reduction, a customer must be able to answer yes to at least one of the following questions.
For personal protection customers:
Because of, or due to, the coronavirus pandemic;
- Has your income reduced?
- Has your spouse or partner had a reduction in income?
- Are you claiming Jobseekers Allowance, Employment and Support Allowance or Universal Credit; or in the process of claiming?
- Do you live in rented accommodation and have stopped paying rent or are you claiming a mortgage payment holiday?
For business protection customers:
Because of, or due to, the coronavirus pandemic;
- Has your business income reduced?
AIG added: "Once we have agreed the request, the sum assured or monthly benefit, and premium will change from the date the next premium is due, provided we have 10 days to process the change and amend the direct debit. We'll email customers with confirmation that the request has been accepted, together with the premium and monthly benefit, which should be kept with cover details in case there is a need to claim. After six months, the sum assured or monthly benefit, and their premium will return back to the levels they were immediately prior to effecting the flexible option under their policy."
