Cancel AIG Life Insurance the easy way

Overview

AIG Life Insurance provided life cover and related products to individuals in the United Kingdom. In 2024 AIG's UK life business was transferred to Aviva PLC, and AIG Life Insurance is not accepting new UK customers. Existing policy terms continue to apply until transferred or replaced.

Products historically offered

Products included level term assurance, relevant life insurance and term assurance, plus some specialist products such as cancer cover and income protection. Policy names in KFS documents include "YourLife Plan Term Assurance" and related term products.

Company facts

For policy documents see official key facts documents: AIG Term KFD and AIG Relevant Life KFD.

Phone

1. Call +44 (0)20 8662 8100 (AIG Direct) Monday to Friday 8:30am - 5:30pm.
2. Give your full name, policy number and date of birth. Ask the agent to process a cancellation and give the effective date.
3. Request written confirmation by email or post and a reference number for the call.

Email

1. Send an email to [email protected] with subject line "Cancel policy - [policy number]" and include your name, policy number, address and signature (scanned or typed name).
2. Keep the sent email and request a read receipt. Wait up to 7 working days for confirmation.

Post

1. Write a signed letter including your policy number, full name, address and reason for cancellation. Send it by recorded delivery to AIG Life Insurance, 58 Fenchurch Street, EC3M 4AB London, United Kingdom.
2. Retain the return receipt and expect up to 21 working days for processing.

Web / iOS / Android

1. AIG has not published a customer web portal or mobile app cancellation route in publicly available UK documentation. Use phone, email or post as above.
2. If you were told a portal exists by a third party, request the URL and specific steps in writing and confirm an alternative contact if the portal is not available.

Cooling-off (first 30 days for life policies)

For AIG Life Limited policies the cooling-off period is 30 days from receiving policy information. Cancel within this period and you are entitled to a full refund of premiums paid, provided no benefit has been paid. This right derives from the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

Moving address (moving / moving)

If you move address you may cancel by contacting AIG with proof of new address such as a council tax bill or utility bill. AIG requires policyholder identity and new address; the effective cancellation date follows standard notice rules. Applicable law: Consumer Contracts Regulations 2013 for cancellation rights where applicable to the contract.

Price increase

If AIG increases premiums in breach of your contract terms you may have legitimate grounds to cancel and seek an adjustment or refund. Provide the policy schedule and the amendment notice sent by AIG as proof. Applicable law: Consumer Rights Act 2015 for assessment of unfair contract terms.

Death of the policyholder

To cancel because of the policyholder's death, the executor or next of kin should provide the death certificate and the policy number. Contact AIG's customer services to notify them and to understand claim versus cancellation implications. Applicable regulator: Financial Conduct Authority oversight of claims handling and the Prudential Regulation Authority for insurer conduct.

Legitimate grounds accepted by AIG (from research)

AIG accepts cancellation during the cooling-off period (30 days for life policies). AIG will not refund if a claim has been paid during the cooling-off window. If cancelling after the cooling-off period, monthly policies end at the next premium due date and no refund is normally given; annual policies cancelled after the cooling-off period will have the cost of full or partial months of cover retained and any balance refunded.

Before cancelling: negotiate

Reported retention offers from AIG are not publicly disclosed in the available documentation. There is no published list of standard retention discounts. To ask for a retention offer, call +44 (0)20 8662 8100 and say: "I want to cancel policy [policy number] but would like to explore alternatives - can you review my premium and available discounts?" Provide updated health and lifestyle details and request any offers in writing. Ask for a deadline to accept any offer.

What cancelling saves you

Example AIG sample prices from 2024: 25-year-old non-smoker, level term 20 years: £7.84 per month. Yearly cost = 7.84 x 12 = £94.08 per year. 55-year-old smoker example: £155.19 per month. Yearly cost = 155.19 x 12 = £1,862.28 per year.

Cheapest real competitor example from research: Legal & General at £5 per month. Yearly cost = 5 x 12 = £60 per year. Savings when switching from the 25-year-old AIG example to Legal & General: £94.08 - £60 = £34.08 per year. Savings when switching from the 55-year-old AIG example to Legal & General: £1,862.28 - £60 = £1,802.28 per year.

Key UK consumer law and regulators

Regulators: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Relevant laws: Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (cooling-off), Consumer Rights Act 2015 (unfair contract terms and reasonable performance).

Cooling-off and refund rights

For life insurance the statutory cooling-off period is 30 days from receiving policy information for AIG Life Limited policies. For other insurance products such as AIG Direct Cancer Cover a 14-day cooling-off period applies. If you cancel during the applicable cooling-off window you are entitled to a full refund unless a benefit or claim has been paid. If you cancel after the cooling-off window, monthly policy premiums already paid are not normally refunded; annual policies will have the cost of full or partial months retained with any balance refunded.

Escalation if you cannot agree with AIG

Step 1: complain directly to AIG using their customer service channels (phone, email or post). Step 2: if not resolved within 8 weeks or you are unhappy with the final response, escalate to the Financial Ombudsman Service. Citizens Advice also offers guidance: Citizens Advice - cancelling an insurance policy.

Get and keep written confirmation

Ask AIG for written confirmation of cancellation, the effective date and any refund calculation. Keep email confirmations or the posted cancellation letter and recorded delivery receipt.

Final billing and refunds

If you cancelled within the cooling-off window you should receive a full refund unless a claim was paid. For annual policies cancelled after cooling-off AIG retains cost of full or partial months of cover and will refund any balance. For monthly policies cancelled after cooling-off there is normally no refund of premiums already paid; cover ends from the next premium due date.

Data and re-activation

Request confirmation of how long AIG will retain your personal data and how to request deletion or a copy. If you want to take out cover again, obtain a written quote and confirm any change to terms resulting from health, age or smoking status.

Use this checklist to cancel and protect your position.

• Find your policy number and product name.
• Decide method: Phone (+44 (0)20 8662 8100), Email ([email protected]) or Post (AIG Life Insurance, 58 Fenchurch Street, EC3M 4AB London).
• If within 30 days of receiving documents, cancel immediately to get a full refund (for AIG Life Limited policies).
• If cancelling by post, send a signed letter by recorded delivery and keep the receipt.
• Request written confirmation of cancellation and any refund calculation.
• If you do not receive a response within 8 weeks, prepare a complaint and escalate to the Financial Ombudsman Service.
• Check alternatives before cancelling: Legal & General from £5/month, Barclays (underwritten by Legal & General) from £6/month, Royal London from £7/month, Aviva from £12/month.