AIG Direct Reviews – Is it a Rip-off?

This article will contain everything that you need to know from an AIG Direct review.  We will cover all the need-to-know details about the AIG Direct also known as Matrix Direct.  We will discuss the AIG Direct business model, their history, and how competitive AIG Direct’s rates are.

AIG Direct Reviews

Does AIG Direct offer the best life insurance companies operating in the United States? That depends on what you are looking for. If you are considering purchasing life insurance with AIG Direct, do not move forward without reading this review.

Shall we begin?

Who is AIG Direct?

You may have seen their ads while surfing the internet or have seen a commercial on television for AIG Direct. However, many are surprised to learn that AIG Direct was actually founded in 1995 as a company called Matrix Direct.

Matrix Direct was founded by Ron Harris and Laura Huffman.  Matrix Direct was essentially a life insurance call center that sold life insurance over the phone, but their brokerage really took off with the rise of the internet. Since 1995 AIG Direct (formerly Matrix Direct) has assisted over six million people find life insurance!

Over the years, Matrix Direct developed strategic partnerships with companies like TransAmerica and Protective Life. However, in 2007 AIG acquired Matrix Direct from Protective Life and eventually re-branded the company as AIG Direct.  As of today, AIG owns AIG Direct (formerly Matrix Direct), and their business model has adjusted accordingly.

Is AIG a True Direct-to-Consumer Company?

The short answer is no. Unlike other online competitors like Haven Life or Ethos Life, AIG does not have a 100% online application.  Instead, you will have to fill out a quote request similar to our brokerage and speak to a licensed agent.

This approach is similar to the independent brokerage model that our agency uses, but not identical.  AIG Direct can broker a limited amount of life insurance companies outside of AIG, but their phone agents are highly incentivized to offer AIG life insurance primarily. This could potentially lead to a conflict of interest in whether or not AIG is the best company for your unique situation.

We have experienced that AIG life insurance can be a solid option for people in excellent health, but their underwriting can be lengthy. One of the largest complaints we often hear regarding AIG’s life insurance coverage is the length of time it takes to get a policy (between 4-8 weeks).

AIG is often priced competitively within a dollar or so of the top life insurance companies with the lowest rates.  However, AIG is not always the best company even though AIG does have unique underwriting niches.

AIG Direct’s customer service can largely depend on the agent you get assigned to. In a large life insurance call center, turnover can be high. Call center agents can be under a large amount of pressure to meet their sales goals and quotas. You may get a rockstar, or you may just be another call in a fast-paced environment.

If you are looking for an unbiased independent agent that is not loyal to any one insurance company, you would want to work with an agency that is not owned by any one life insurance company.  Most independent agents work with AIG.  However, if an independent agent recommends AIG, you can be confident that it is because they believe AIG is the best option to protect your family, not because they work for AIG.

AIG Direct Rates

AIG Direct claims on its website that it can save you up to 70% on your term life insurance policy compared to the same coverage through other carriers.  This is true.  However, any independent broker who represents the same companies that AIG Direct does can also save you up to 70% on your term life insurance.

Life insurance is a highly regulated industry.  Life insurance rates are approved by the state insurance department.  Whether you purchase AIG life insurance from AIG Direct or another broker, you will receive the same rate down to the penny.

In our opinion, working with an independent broker is your best opportunity to save money on your life insurance because independent brokers know the underwriting of the best life insurance companies.

Every life insurance company has slightly different opinions underwriting that is continually changing. Anyone can look at a list of rates and quickly determine what the lowest rate is.  However, can you qualify for it?

That is why working with an independent life insurance agent that is not owned by any one insurance company increases your odds of saving money on your life insurance.  An independent agent is more likely to both know and recommend what company will give you the best offer since they are not incentivized to work with one company over another.

That being said, sometimes AIG is the best option.  For people who are generally in fair-to-excellent health on little or no medications, AIG life insurance usually falls consistently among the top 5 best rates depending on a number of factors. AIG is also highly competitive for certain sub-standard risks.

We have included some sample AIG term life insurance quotes.  Please note that you need to qualify for these rates based on your health, lifestyle, and other factors.

Sample AIG Life Insurance Quote: Term (Age 30)

DEATH BENEFIT MALE 10-YEAR MALE 20-YEAR FEMALE 10-YEAR FEMALE 20-YEAR
$250,000
$ 12.74
$ 16.37
$ 11.24
$ 14.02
$500,000
$ 18.72
$ 25.99
$ 17.01
$ 21.29
$1,000,000
$ 27.70
$ 44.80
$ 24.28
$ 34.54

How Does AIG Direct Life Insurance Work?Please note that these AIG term life insurance quotes are for the preferred best non-tobacco health class. 

AIG Direct sets out to protect you and your family with reliable and affordable term life insurance, which is a laudable goal. AIG Direct brokers a total of 9 life insurance companies and a mixture of permanent and term life insurance.

All of the companies that AIG Direct represents are highly rated investment grade companies according to A.M Best for financial strength.  Many of these companies have been in business for decades and some over 100 years!  While the AIG Direct’s list of carriers is smaller than most independent brokerages, the life insurance companies that they do represent are financially stable.

The types of policies that AIG Direct offers are:

  • Term Life Insurance
  • Universal Life Insurance
  • Accidental Death Insurance
  • Whole Life Insurance
  • Guaranteed Issue Whole Life Insurance

While some of these companies have accelerated underwriting programs that may waive the medical exam for certain qualified applicants, no-exam life insurance is one area where AIG Direct’s carrier lineup is light on options.  If you are looking for a company that specializes in no-exam term life insurance, check out our Sagicor Life Insurance Review.

Another area that AIG Direct’s life insurance company lineup is lacking in options is with accelerated benefits for critical and chronic illness.  Living benefits for critical and chronic illness are usually built into the life insurance policy for no additional cost.  If you receive a serious illness like a heart attack or stroke, you can accelerate a portion of your death benefit while you are still alive!

These accelerated benefits for critical and chronic illness can be used to help pay medical bills, rent or mortgage payments, or groceries. If you fully recover from your critical or chronic illness, you get to keep the proceeds!  If living benefits for critical and chronic illness interests you, check out our Phoenix Life Insurance Review for a great middle-market solution.

AIG Direct Customer Feedback

AIG Direct posts customer ratings and reviews on their website.  Over 1700+ ratings and user reviews are used to calculate their overall rating, which is currently a 4.5 out of 5 stars.  Additionally, AIG Direct has received an A+ rating, the highest rating, from the Better Business Burea (BBB) and has been accredited with the BBB since 9/4/2009.

That being said, there were some negative ratings due to perceived aggressive sales tactics, confusing pricing, and the length of the process.  While no company gets it right 100% of the time, most people who left ratings on AIG Direct’s website tended to be happy with AIG Directs’s service.

The Final Word – Is AIG Direct Good or Bad?

Thank you for reading our AIG Direct life insurance review. We hoped our AIG Direct life insurance review helped you decide what the best life insurance company is to protect your loved ones with.  If you want to contact AIG Direct, the AIG Direct phone number is 1-800-294-4544, or you can visit their website.

AIG Direct offers 9 highly rated life insurance companies, which is on the low side.  Many independent life insurance agents represent over 25 top-rated.  As a result, there are some gaps in AIG Direct’s product lineup.

AIG Direct could be a good option if you are in fair-to-excellent health and want a fully underwritten term life insurance policy.  However, if you have a pre-existing medical condition or you are looking for no-exam life insurance coverage, then working with an independent life insurance agent may be a better fit for you.

Independent life insurance agents can broker multiple companies to find you the best deal on your coverage.  An independent agent most likely would have a more comprehensive selection of life insurance companies to choose from, especially in the areas of no-exam life insurance and life insurance with living benefits.

Each life insurance company has different opinions on rates and underwriting. A knowledgeable independent life insurance agent will know what companies will offer you the best value to protect your family and are not incentivized to sell one company.

If you are looking for life insurance, don’t hesitate.   Request a free no-obligation quote, or call on of our veteran life insurance agents for a consultation today.

Joseph Cirillo of Good Life Protection

Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs.  Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.