Matthews IFA Ltd
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Low-cost Critical Illness Cover!

AIG Life has launched Key3, a simpler form of critical illness insurance which pays a lump sum upon diagnosis of one of three key medical conditions - cancer, heart attack or stroke.

It is designed to give customers simple, affordable and essential critical illness cover, which can be bought with or without life insurance.

The provider is targeting individuals who haven’t traditionally considered such insurance, including younger single people who rent rather than own their homes and those on a tighter budget.

Research AIG conducted with intermediaries found cancer, heart attack and stroke - which accounted for almost 80 per cent of its adult claims in 2015 - were the medical conditions that customers fear most.

Testing with consumers then showed they might be interested in insurance covering these key three medical conditions, if it came at a lower cost than comprehensive critical illness cover.

Adam Winslow, chief executive of AIG Life, pointed out in their lifetime every other person in the UK will get cancer, while someone has a heart attack every seven minutes or a stroke every 12 minutes.

“Yet there is a huge market of UK customers who do not have critical illness insurance and don’t realise they need a financial plan in place if they fall seriously ill,” he commented.

“This fills a gap in the market for customers who feel they can’t afford comprehensive critical illness insurance or who, like ‘generation rent’, do not own a home and are not prompted by a house purchase to look at how they will manage financially if they suffer from cancer, a heart attack or a stroke.”

Like AIG’s comprehensive critical illness cover, Key3 comes with access to the Best Doctors service, which can be used by the insured person for up to three years after payout, as well as access to the firm’s Claims Support Fund.

This fund can provide the claimant with up to £300 while AIG processes a claim to cover additional expenses such as travel, parking costs and physiotherapy.

Key 3 is available to customers aged 17 to 75 and can be bought as a fixed (level), decreasing or increasing sum assured. Some customers may be given the option to include Waiver of Premium.

The Key3 Critical Illness Insurance pays a lump sum if a client is diagnosed with cancer, or suffers a heart attack or stroke, while the Critical Illness with Life Insurance pays a lump sum if clients are diagnosed with cancer, suffer a heart attack or stroke, die or are diagnosed with a terminal illness and have less than 12 months to live.

Alan Lakey, founder of CI Expert, a critical illness cover comparison website, said while less comprehensive than most, this plan will appeal to consumers looking for a smooth application process, quality definitions and a commitment to paying claims. “If they succeed in extending the take-up of plans to previously disinterested consumers, then the industry should applaud and take note”, he said.

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