AIG is extending its six-month payment flexibility for people who are under financial hardship due to the increasing cost of living.
The insurer originally introduced the option to help policyholders cope with the impact of the Covid-19 pandemic and has decided to carry on given the current economic conditions.
Customers can request that their premium, sum assured or benefit be reduced for six months by self-certifying that they are struggling financially and provided their lower insurance cost remains above AIG’s minimum levels for the cover.
Individual or business protection customers can apply for the change and there is no evidence of financial hardship required.
Customers will not be asked to pay back the difference in payments when their premiums return to normal.
Since its introduction in April 2020, more than 500 people have used the option the insurer said, with 85% continued to be insured after their flexible period ended.
Overall, 73% reverted to their original premiums and benefit after the six months, 11% stayed insured and kept their reduced insurance amount, and 1% used a mid-term adjustment to change their benefit amount and premium.
Customers continue to have access to all of AIG Life’s support services, including its Smart Health 24/7 telehealth service.
Debbie Bolton, chief underwriter at AIG Life, said the option meant customers, businesses and families who were concerned about how to meet their bills could request help and stay insured while they review their finances in the coming months.
“Covid restrictions have been lifted but as a nation we’re facing new financial challenges – from energy price hikes, rising interest rates or other cost of living increases,” she said.
“At the same time, we understand the valuable role that protection insurance plays in people’s lives and how important it is that they hold onto their cover.
“If something were to happen to them and they no longer have it in place, the financial implications could be much worse for their families and businesses.
“Our policy flex option has already helped other customers in need of support and we want to help ease the pressure now.”
The insurer added that if people had financial concerns for them to get in touch.