AIG Life Underwriting Initiative – Update

AIG Life (AIG) is now well into the six-week window it has allocated for its underwriting concessions initiative.

This Special Underwriting Concessions initiative has given thousands of existing AIG Term Life and TPD policy holders the opportunity to increase their Term Life protection by up to $1 million and their TPD cover by up to $750,000 without needing to go through the underwriting procedures usually required for these increased levels of protection.

With the campaign now having completed its fourth week, the response, according to AIG Life’s Head of Adviser Services, David Mounsey, has been very positive: “We have been delighted with the response to this campaign from both our advisers and their clients, with hundreds of policy holders electing to increase their cover under our concessional offer.”

All that AIG Life requires from its eligible policy holders to take advantage of this offer is for:

• The policy to be less than three years old; and
• The client to sign a declaration of continued good health

Commenting on this initiative from the underinsurance perspective, Mr Mounsey, said “…people simply do not tend to take out sufficient life cover to protect their family against the loss of their income through death or disability.  This campaign helps those customers who have already recognized the need to be insured with AIG Life’s Priority Protection policy, to upgrade to a more realistic level of cover.

Mr Mounsey, also observed that “…while the traditional Aussie attitude is ‘it won’t happen to me,’ people should be aware that AIG Life expects to pay out around $100 million in claims in 2008 to existing customers.”

The Special Underwriting Concessions initiative opened on 1 August 2008, and remains open to advisers and their clients until 12 September 2008.