Both the Life Start and CIC Start products offer the same cover as AIG’s standard level term life and critical illness assurance, but premiums start lower and increase at a fixed 3.5% each year.
The insurer said premiums were on average 30% lower than standard products and customers can also upgrade to the standard products without additional underwriting.
The incremental price will rise to match the cost of the standard products by no later than 80% of the way through the term.
Both include access to the Best Doctors second opinion medical service and children’s bereavement charity Winston’s Wish, as well as AIG Life’s Claims Support Fund.
AIG Life intermediary director Vicky Churcher said: “Feedback we gathered from intermediaries was that affordability is becoming more of an issue as the cost of living increases and customers want certainty about what they will pay each year for their protection insurance.
“We reworked Life Start and CIC Start to set in stone how it rises in cost each year.
“This allows intermediaries to reach new clients seeking affordable, high-quality life and critical illness and enables individuals on a tight budget as well as stretched property owners to get the start they need,” added Churcher.
The Claims Support Fund pays up to £300 on top of the sums assured to help with a range of costs such as parking and travel when attending hospital appointments, childcare while in hospital, wigs and special clothing and the hiring of a cleaner while they were recovering from treatment.