Why is life insurance important?
It is important to protect yourself and your loved ones, should the worst happen. Family circumstances can change at any point, like when you buy your first home or take out additional borrowing. This means your protection needs may change also.
The money from life insurance could help your family in many ways, such as:
- Paying off big debts like your mortgage
- Providing a lump sum so they can continue to pay their household bills
- Covering new costs like childcare
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Level or Decreasing
With level cover the lump sum paid out at claim stays the same over the period you’re insured for. You choose how long you want to be insured for and how much to receive.
With decreasing cover the lump sum paid out at claim reduces over time, usually in line with your repayment mortgage.
Whatever kind of mortgage you have, bear in mind that if the full amount of your mortgage isn’t protected, then the lump sum paid out may not be enough to pay off your mortgage in full, should anything happen to you.
Single or Joint
Usually when people have a joint mortgage, they take out a joint life insurance policy, but you can get a single policy just for yourself.
A joint policy could be used to pay off the mortgage when one person dies, but it will only pay out once. While this can seem the cheaper option, bear in mind that having two single policies means that two lump sums could be paid out.
You can choose how long you want to have life insurance cover for – usually this will be aligned to your mortgage, so it could be paid off if you die before the end of your mortgage term. If you choose a shorter term for your life insurance, your mortgage won’t be protected for its duration.
Critical illness cover with your life insurance
This cover will pay a lump sum, if you have or develop certain forms of cancer of a specific severity, heart attack, stroke, terminal illness or if you pass away during the time you are covered under the policy. You could use the money to help pay off your mortgage or help to pay for unforeseen costs due to your illness such as rehabilitation treatment or alterations to your home. Available to customers 17 – 75.
Access to Smart Health with AIG
The Smart Health app and website gives all AIG customers, their partner/spouse and children (up to the age of 21) unlimited access 24/7 to a remote GP, as well as a range of other health and wellbeing experts.
With the Smart Health app from AIG you can get:
- 24/7 Virtual GP access
- Access to world leading experts
- Mental health support
Smart Health is provided to AIG Life Limited customers by Teladoc Health. These services are non-contractual, which means they don’t form part of the insurance contract with AIG. If AIG partnership with Teladoc Health ends, these services could be changed or withdrawn in the future.
First things first.
We only offer access to life insurance from AIG Life Limited
It’s important to understand that you’ll be dealing directly with AIG, not us. By choosing to continue, you’ll be taken to the AIG website.
Please download, read and save this document for your records.
Insurance: Important Information (PDF, 30 KB) or request a paper copy
If you're considering applying for a Royal Bank of Scotland mortgage, it's important to remind you that life insurance is not a condition of taking out a mortgage with us.