WHOLE OF LIFE
INSURANCE
Chosen partner of NFU Mutual
AIG WHOLE OF LIFE INSURANCE KEY FACTS
IMPORTANT FOR NFU
MUTUAL CLIENTS
PLEASE READ
This policy is being provided to you by our
chosen partner – AIG Life Limited (AIG).
AIG is the life insurance arm in the UK of
American International Group, Inc. (AIG, Inc.)
– a leading international insurance organisation
serving customers in more than 80 countries and
jurisdictions.
NFU Mutual has chosen to partner with AIG to
provide you with this protection policy because they:
· provide excellent service, and
· consider all claims fairly.
This document gives you the key information you
need to help you decide whether AIG Whole of Life
Insurance is right for you. It is available in other
formats such as Braille, large print or audio. Please
ask if you need one of these formats.
This document does not contain the full terms and
conditions and exclusions of cover. Please also refer
to your Cover Summary and Cover Details, which
will be issued when your policy starts. You can ask
your NFU Mutual financial adviser for a copy of the
Cover Details or visit nfumutual.co.uk.
This document is based on our understanding of
the current laws in England and Wales and tax rules
in the UK (dierent rules may apply in the Channel
Islands, Isle of Man or Gibraltar).
If you’re thinking of taking out insurance, you may
wish to get expert advice from a financial adviser
who can look at your personal circumstances and
help you make the decision that’s right for you.
It’s important that the information you provide
when you take out this policy is true, accurate
and complete. If you don’t, your insurance may
be cancelled or a future claim may be rejected or
reduced.
WHAT IS AIG WHOLE OF LIFE
INSURANCE?
AIG Whole of Life Insurance is designed to pay out a
lump sum when the person covered dies or is
diagnosed with a terminal illness - where life
expectancy is less than 12 months. The policy will end
when we pay a death or terminal illness claim.
There is no maximum term, the cover will last
throughout the life of the person covered.
AIG Whole of Life Insurance can be used to provide a
legacy for a family member or friend, oer financial
protection or help fund an inheritance tax liability.
If the sum paid out under this policy forms part of
your estate, it may not be free of inheritance tax. You
may wish to place your policy in trust to help mitigate
the eect of inheritance tax. However, we cannot
advise whether a trust is suitable in any particular
circumstances or give tax advice in relation to the use
of trusts. We recommend that you take professional
advice before setting up a trust.
WHO CAN BUY AIG WHOLE
OF LIFE INSURANCE?
AIG Whole of Life Insurance is available to British
citizens or those resident in the United Kingdom,
Channel Islands, Isle of Man and Gibraltar. They
must be aged 17 up to and including 84. In certain
circumstances we may be able to oer cover where
the person to be covered is a resident overseas. Please
contact us for further information.
You can select to insure:
• you alone - we call this ‘single life’ cover;
• you and another person - we call this ‘joint life’ cover;
or
• one or two people other than yourself - this can be
either ‘single’ or ‘joint life’ cover.
If you chose to insure two people under one cover, we’ll
ask you to choose whether you want the cover to pay
out:
• when one of the people insured has died, or is
diagnosed with a terminal illness (we call this ‘joint
life first event’); or
• when both of the people insured have died, or have
been diagnosed with a terminal illness (we call this
‘joint life second event’).
AIG WHOLE OF LIFE INSURANCE KEY FACTS
HOW DOES AIG WHOLE OF
LIFE INSURANCE WORK?
THE AMOUNT OF COVER
When you take out AIG Whole of Life Insurance, you
decide how much cover you want. This amount is
called the ‘sum assured’. This is the amount we pay if
the person covered dies or is diagnosed with a
terminal illness.
TYPES OF COVER
• Level - this covers you for a fixed sum assured.
• Increasing - your sum assured increases each year
in line with the Retail Prices Index (RPI) up to a
maximum of 10%.
Further information regarding these types of cover is
available in section B1 of the Cover Details.
PAYING FOR YOUR POLICY
Your premiums will be guaranteed and will not
change unless you choose increasing cover.
We will collect monthly or annual premiums from you
by direct debit to pay for your insurance until the date
your insurance ends.
ADDITIONAL OPTION AVAILABLE
AT EXTRA COST
• Waiver of Premium - you can include Waiver of
Premium in your policy, if the person covered is
aged 54 and below when you buy your policy. We
will waive your premiums if the person covered is
incapacitated for longer than 26 weeks. Waiver of
Premium will end when the person covered reaches
their 70th birthday.
• Waiver of Premium may not be available to
everyone or we may restrict cover. If this happens,
we will explain our decision.
How we define incapacitated depends on whether the
person covered is in paid work and what kind of work
they do. This definition will be agreed at application
and shown in the Cover Summary, based on their
circumstances at the time. If their circumstances
change prior to becoming incapacitated, a dierent
definition may apply to their claim. For a full
definition of incapacitated, please see section E of the
Cover Details.
For further information regarding Waiver of Premium,
please see section B2 of the Cover Details.
AIG WHOLE OF LIFE INSURANCE KEY FACTS
CHANGING YOUR POLICY
There are many ways that you can change your policy
to make sure that it is still meeting your needs.
You can increase the amount of your cover without
providing further medical evidence if the person
covered is 55 years old or less when you take out the
policy and:
• gets married or becomes a civil partner;
• has a child (including adopting a child);
• increases the amount of the mortgage; or
• is promoted by their current employer, or starts a
new job with a dierent employer, and their salary
increases.
There is a limit to how much you can increase your
sum assured - it can’t be more than the lower of 100%
of the original sum assured or £150,000.
You can also increase the amount of cover if your
inheritance tax (IHT) liability increases, and you are
aged 90 or under:
1. Where there is an increase in the value of your
estate which causes an increase in prospective
liability to IHT. The increase in sum assured allowed
under this option must not exceed the increase in
liability to IHT.
This option can be exercised any number of times,
provided that the combined total increase is not more
than:
• 100% of the original sum assured; or
• £250,000.
2. Where there is a change to IHT legislation either
by:
• the UK Government announcing a legislative
change in the rate, or rate bands, of IHT; or
• the UK Government announcing a legislative
change in the exemptions and reliefs from IHT.
The increase in sum assured allowed under this
option is not more than the lower of:
• the increase in the proportion of the liability
covered immediately before the change;
• £5million; or
• 100% of the original sum assured.
This option must be exercised within six months of
the change in legislation.
In addition, you can choose to:
• reduce the sum assured;
• stop and restart annual increases if you have
selected increasing cover;
• add another person to single life cover; or
• change your premiums from annual to monthly and
vice versa.
We also include a continuing cover option, which
allows a surviving person covered to apply for further
cover up to the sum assured under their original
cover, after we have paid a benefit on a joint life first
event cover. This option must be exercised within 13
weeks of the claim being paid.
A further change which can be made on joint life cover
is where persons covered get divorced or separated, or
obtain a dissolution of a civil partnership. In this
instance, each person can choose to take separate
cover as long as the total cover across both new
policies does not exceed 100% of the current sum
assured under the joint life cover. This option must be
exercised within six months of separation. Both people
must agree to the change.
These options may not be available to everyone, for
example if the person covered has a particular
medical condition when the cover was first taken out.
For more information, including further limitations,
please see section C4 of the Cover Details.
AIG WHOLE OF LIFE INSURANCE KEY FACTS
IMPORTANT INFORMATION
You can only insure someone else if you would suer
financially were they to die or suer a terminal illness.
We call this ‘insurable interest’. You will always have an
insurable interest in your own life, or in the life of your
spouse or civil partner.
AIG Whole of Life Insurance only protects you
against events that happen to the person covered
during the lifetime of your cover.
If you don’t review your policy in line with your
earnings and lifestyle, you may have more or less
cover than you need.
Inflation will reduce the spending power of any benefit
you are paid in the future. To help protect your cover
against this eect, you can choose to set it up with a
sum assured that increases in line with the RPI, up to
10% each year. If the policy has an increasing sum
assured, the premium will be reviewed annually and
will increase by a higher percentage than that of the
sum assured, because the amount of the increase of the
premium will depend on the age of the person covered.
If you set up a cover with an increasing sum assured,
the amount you pay will increase each year to pay for
the extra cover. If you then change to a level sum
assured, the premium will remain at the level it was
when you made the change. If you restart the annual
increase, the premium will increase again.
A claim for terminal illness can only be made where
the person covered has been diagnosed with 12 months
or less to live. If a medical consultant cannot determine
this, or expects death to occur more than one year after
diagnosis, then we will not pay a benefit.
For joint life first event policies, we will pay the sum
assured when one of the people insured has died or is
diagnosed with a terminal illness. The policy will then
stop and the other person will no longer have
insurance cover under this policy.
For joint life second event policies, we will pay the
sum assured when both of the people insured have
died or have been diagnosed with a terminal illness.
For a terminal illness claim, the person covered can
be residing anywhere in the world, however the
consultant must be in an eligible country.
For a death claim, the person covered can be
anywhere in the world.
For Waiver of Premium claims, the person covered
must be living in an eligible country when they
become incapacitated. They must return to and
remain in the UK, Channel Islands, Isle of Man or
Gibraltar within 26 weeks of becoming incapacitated
in order to receive the benefit.
A list of eligible countries is shown in section E of the
Cover Details.
We will not waive premiums if the person covered is
incapacitated and Waiver of Premium is not included
in the cover for that person (this information will be
shown in the Cover Summary).
If any premium remains unpaid for more than 30 days
from the date it was due to be collected, we will cancel
your policy and you will no longer be covered.
The premiums paid over the lifetime of the insurance
can exceed the sum assured.
AIG WHOLE OF LIFE INSURANCE KEY FACTS
OTHER INFORMATION
MAKING A CLAIM
We want to make it easy for someone to claim.
Whoever is making the claim should get in touch as
soon as they can using the contact details provided.
If you would like to know more about how to claim,
please see section C5 of the Cover Details.
We will pay the benefit to the person legally entitled to
receive it. Who this will be depends on the nature of
the claim, the circumstances at the time and whether
the policy has been assigned or put under trust.
During the course of the claim assessment, we will
establish and confirm who we identify as legally
entitled to receive the benefit.
WHEN WE WON’T PAY A CLAIM
We won’t pay a claim if you don’t:
• pay regular monthly or annual premiums throughout
the term of your policy;
• give us accurate, complete and true information
when you apply for AIG Whole of Life Insurance;
• give us any medical or other evidence that we ask
for; or
• tell us immediately if any of the information in the
Cover Summary or Application Details we send you
is wrong.
We also won’t pay a claim if the person covered dies
as a result of their own actions within one year of the
cover start date or the latest restart date. Once the
cover has been active for more than 12 months, if the
person covered has asked us to increase the sum
assured in the 12 months prior to them dying as a
result of their own actions, no benefit will be payable
in respect of this increase.
Further information about when we won’t pay a claim
can be found in section B1 of the Cover Details.
CHANGING YOUR MIND ABOUT AIG
WHOLE OF LIFE INSURANCE
When your policy starts, we will send you information
about your right to change your mind and cancel your
policy. You have 30 days from the date you receive
this information to cancel your policy. If you cancel
your policy in this time we will refund any premiums
you’ve paid, unless we have paid you a benefit before
you cancel.
Should you not cancel your policy within this time
period, your policy will remain active as set out in
your Cover Summary.
You can stop your policy at any other time. Once you
tell us, your policy will end on the day before your
next monthly premium to us is due. Any premiums
paid to date will not be refunded. If you are paying
annual premiums, your policy will end on the day
before the next monthly anniversary of the policy. We
will retain the cost of any full (or partial) months of
cover up to the date of cancellation and will refund
any balance of the annual premium.
Your policy will not have a surrender value at any time.
THE LAW
The Law of England and Wales will apply to this
insurance.
LANGUAGE
All our communications with you now, and throughout
the term of your insurance, will be in English.
AIG WHOLE OF LIFE INSURANCE KEY FACTS
CURRENT TAX RULES
Under current legislation and HMRC practice, benefit(s)
payable under this cover are normally free from Income
Tax and Capital Gains Tax for UK residents, unless you
assign your policy to someone else.
Professional guidance should be sought before any type
of assignment or changed ownership is undertaken.
If your policy is not placed in trust, the benefit we pay
may form part of your estate for inheritance tax
purposes.
PERSONAL INFORMATION WE COLLECT
Personal information we collect about you includes
sensitive information such as your health and medical
history. Where we collect this information, we will rely
either on your consent, or on a combination of the
following justifications: performing a contract with you
or preparing to enter into a contract with you; complying
with regulatory requirements; or having a legitimate
interest to request your personal information.
To give you a quicker decision about your insurance,
we may make decisions about your application using
an ‘automated decision-making tool’. An ‘automated
decision-making tool’ doesn’t involve human input and
we sometimes use it to determine whether we are able
to provide you with insurance and on what terms based
on the answers you give us.
We may also use your personal information to detect,
investigate and prevent crime (including fraud and
money laundering). Where permitted by applicable
law, AIG Life Limited may share personal information
with carefully selected third parties, for example, other
insurers, reinsurers, and financial advisers.
Your personal information may be transferred outside
the country in which you are located including to
countries outside the European Economic Area.
As a data subject you have certain rights in relation to
your personal information. More details about AIG Life
Limited’s use of personal information and your rights as
a data subject can be found at www.aiglife.co.uk/
privacy-policy or you may request a copy using the
following contact details: Data Protection Ocer, AIG
Life, 58 Fenchurch Street, London, EC3M 4AB or by
email at DataProtectionO[email protected]o.uk
AIG WHOLE OF LIFE INSURANCE KEY FACTS
ABOUT OUR BUSINESS
Information about our business, performance and
financial position, and details on how we control our
business and manage risks can be found in our
Solvency and Financial Condition Report available on
our website www.aiglife.co.uk.
MAKING A COMPLAINT
If you have a complaint, you can get in touch with us
using the contact details provided. We will try to
resolve complaints as quickly and fairly as possible.
If we cannot deal with your complaint promptly, we’ll
send you a letter to acknowledge it and give you
regular updates until it is resolved.
If you are not happy with how we deal with your
complaint, you can refer it to the Financial
Ombudsman Service.
You can email them at:
complaint.info@financialombudsman.org.uk
call 0800 023 4567 (calls to this number are free on
mobile phones and landlines) or 0300 123 9123 (calls
to this number cost no more than calls to 01 and 02
numbers) or write to:The Financial Ombudsman
Service, Exchange Tower, Harbour Exchange Square,
London E14 9SR.
Making a complaint to the Financial Ombudsman
Service does not aect your right to take legal action.
WHAT HAPPENS IF AIG GOT INTO
FINANCIAL TROUBLE AND COULDN’T PAY
OUT THE MONEY
The Financial Services Compensation Scheme (FSCS) is
there to protect you if we cannot meet our obligations.
Whilst most customers will be covered under the
FSCS, whether or not you can claim and the amount
you can claim depends on the specific circumstances
of your claim. You can get further information from
www.fscs.org.uk or by calling 020 7741 4100.
HOW TO CONTACT US
For any enquiries about AIG Whole of Life Insurance:
• call 0330 123 4467
• email nfumutual@aiglife.co.uk
To make a complaint:
• call 0345 600 6813
• email complaints@aiglife.co.uk
To contact the Claims Team:
• call 0345 600 6815
• email claimsteam@aiglife.co.uk
We are open Monday to Thursday, 8.30am to
8.00pm and Friday, 8.30am to 5.30pm, except for
bank holidays.
Please note these opening hours are UK local time.
You can also write to us at: AIG Life Limited, PO Box
12010, Harlow CM20 9LG or visit www.aiglife.co.uk for
more information.
Calls are charged at standard rates from a BT landline
but may cost more via mobiles and other networks.
We may record or monitor calls to make sure we have
an accurate record of the instructions we are given,
for training purposes, to improve the quality of our
service and to prevent and detect fraud.
AIG Life Limited. Telephone 0345 600 6820. Registered in England and Wales. Number 6367921. Registered
address: The AIG Building, 58 Fenchurch Street, London EC3M 4AB. AIG Life Limited is authorised by
the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority. The registration number is 473752.
EDCO 2153 - 1220
