AIG Life Insurance Review [Read Before Purchasing]

If you have been plowing through google results looking for the most comprehensive AIG Life Insurance Company review, you have to come to the right place. 

Reviewing life insurance companies is what we do. And we do it well!

aig life insurance review

When you are reviewing life insurance companies, you come across some companies that may seem great from a birds eye view but after a closer look, maybe you can do better?

Don’t get us wrong, AIG is one of the biggest and longest standing companies you can choose to secure life insurance with. That doesn’t necessarily mean they are the best for every individual. 

AIG did make the cut for one of our top life insurance companies for 2019. However, in some circumstances, you may have more affordable options to choose from. 

In addition, we do love the fact that AIG does currently offer one of the top guaranteed issue products on the market (we will touch on this later in the post).

Lastly, we want to take the time to explain how AIG Direct works. You know what we are referring too. The ads that end up finding their way into everything you do on the internet? 

Curious what else we plan to cover in this review of AIG Life Insurance Company?

Here’s the game plan we have in store for you and 10 frequently asked questions we get on a daily basis that we want to take the time to answer about AIG.

  • Is AIG the same as American General Life Insurance?
  • Did AIG go out of business at one point in time?
  • Is American General Life Insurance a Good Company?
  • Is American General Life Insurance Company the right company for me?
  • What's AIG's Financial Strength Ratings?
  • Does American General Life Insurance have numerous complaints? What's Their BBB Rating?
  • Does AIG Offer Whole Life Insurance?
  • Does AIG Offer Auto Insurance?
  • How Do I contact AIG (American General Life Insurance Company)?
  • Does AIG Offer Living Benefits With Their Life Insurance Products?
That’s right, we are going to answer all 10 of those questions so stick around. 

Let’s dive into the details.

AIG Becomes Questionable After U.S. Government Bailout

So, the answer to the question, did AIG go out of business?

There was great controversy over the largest bailout ever handed out by the United States government for a private company. However, AIG re staked their claim in the life insurance market and is now functioning at 100% capacity offering clients outstanding coverage options.

American General Life Insurance Company has persevered through tough times and is renowned as a symbol of strength within the life insurance industry.

AIG may be considered as one of the best life insurance companies in the industry but again, that doesn’t always mean they for you (we will cover those details shortly. 

If you have been searching for a life insurance company that ticks all the right boxes, AIG Life Insurance company may certainly be that company.

But what are the weaknesses of AIG? Where could they do better? Are they best for smokers and other individuals with any health impairments?

That’s what we want to cover here today. Everything you need to about American General Life Insurance and when a better option may be your best plan of action.

To get a full scope overview proceed to our in-depth and honest AIG Life Insurance Review Below

AIG Life Insurance Review – Company History

AIG was founded in Shanghai, China, in 1919, and was called the American Asiatic Underwriters.

The company was tremendously successful in its early years, and opened an office in America in 1926.

They changed their name to American International Underwriters Corporation, but that wasn’t the only name change it underwent. In 1967, after undergoing years of global expansion, AIG became known as the American International Group or AIG which is now known as American General Life Insurance Company.

The early 2000’s were very good for the company, but it did manage to find itself involved with controversies and challenges. AIG had to pay massive fines as their executives were charged by the Securities and Exchange Commission for criminal wrongdoing.

The financial crisis of 2008 spelled disaster for the company, which was because of the credit default division.

This isn’t necessarily the worst thing to read about a life insurance company. AIG was one of many impacted in 2008 and the rebound they have made has shown they are here to stay. 

They are backed to superb financial strength ratings and don’t appear to be a life insurance company that has no potential of going insolvent in our lifetime or the next.

Throughout the bailout period, the life insurance sector of the company was never compromised, and maintained outstanding ratings from all the major insurance ratings agencies. 

The bailout clearly helped AIG survive the tight credit crunch and manage to provide outstanding products and services to clients while boosting their name and brand awareness to the world.

AIG Goes Public in 1984

AIG decided to go public and began selling its shares on the NYSE in 1984, and hasn’t looked back, and the company has underwent massive growth in every department.

It took the best part of 5 years for AIG to pay back its loans to the Federal Reserve and recover from the heavy losses it incurred back in 2008. Slowly but surely, they still got the job done.

During this time period, AIG managed to re brand, and restructure itself, and managed to remain a massive name in the life insurance industry. 

Even with some of the negativity that took place roughly a decade ago, American General Life Insurance has remained one of the most dominant life insurance companies worldwide. 

A Strong Financial History, Strength and Worldwide Life Insurance Company

American General Life Insurance is currently backed by the financial strength ratings that you can see below in the chart.

The company is one of the biggest corporations in the United States, and has never failed to deliver outstanding customer service. Although AIG is worldwide, AIG is currently headquartered in New York, New York. 

If you are searching for bargain deals on term life insurance, AIG may be the best pick for you.

However, give us a few more minutes to explain some of the pros and cons of AIG’s term life insurance, whole life insurance and universal life insurance before you ultimately make that decision.

We think we have the inside scoop you have been looking for.

A.M. Best RatingStandard & Poor's RatingFitchMoody's
A
A+
A+
A2

AIG Financial Strength Ratings and Customer Service Ratings

There are very few life insurance companies that can boast greater financial stability, higher ratings, and better customer service ratings than AIG. 

The company has been a pillar of strength in the life insurance industry, and has acquired phenomenal ratings from all major ratings institutions in the United States. 

Here are some of the financial strength ratings that AIG has been awarded. (March 2019)

  • A.M. Best rating — “A, Good”
  • Standard & Poor’s rating — “A+”
  • Fitch – “A+”
  • Moody’s – “A2”

AIG Is an “A” rated company, which means all major ratings institutions such as A.M. Best, Fitch, Moody’s and Standard and Poor’s place AIG in the top tier of financial strength and risk of becoming insolvent.

That is a feat that very few life insurance companies manage to achieve in terms of financial strength.

AIG Life Insurance BBB Rating (As of March 2019)

 As of March, 2019, AIG is currently backed by an A- BBB (Better Business Buraeu) Rating. This isn’t the best but it’s also pretty good. 

In the last year AIG is currently showing 127 total complaints filed against them with 61 of these complaints being resolved quickly.

While this isn’t the best BBB rating we have ever seen, we also don’t believe it’s a bad BBB rating by any means. A company the size of AIG and with the total assets under management that they currently have is bound to make a consumer or two upset from time to time.

The important thing is that they resolve the issues quickly in most circumstances.

 

AIG Life Insurance Reviews and Products Offered

American General Life Insurance Company, offers several life insurance products. The main products offered by the company are focused on life insurance, financial planning and estate planning. 

All the life insurance products offered by AIG are among the best for life insurance coverage but only to a certain extent. 

The products offered by the company are competitive and affordable, and the term life insurance offered by AIG is currently one of the cheapest life insurance products offered to consumers but it does have a few downfalls as well as strengths.

AIG Term Life Insurance Product Overview

American General Life Insurance Company currently offers a few versions of the term life insurance product. You have the choice between the following.

  • The AG Select-A-Term
  • The AG ROP Select-A-Term (return of premium policy)

The AIG Select-A-Term

This is a simple term life insurance policy with coverage being offered for the following durations.

  • 10 Years
  • 15 Years
  • 20 Years
  • 25 Years
  • 30 Years
Term life insurance is always going to be your most affordable form of life insurance coverage you can purchase. 
AIG happens to offer one of the cheapest term life insurance policies available but if you read further into our review, you can see where it may or may not be the best fit for you any your family.
 

The AIG ROP, (Return of Premium) Select-A-Term

This insurance policy is just like the other term policy, but it allows a return of premium, which is 100% tax free for anyone that has reached the end of their term, and doesn’t want to keep their policy or have it converted into another permanent life insurance policy such as Universal Life Insurance policy or a Whole Life Insurance Policy.

AIG Universal & Indexed Universal Products

There are several individual universal life insurance product choices offered by AIG, and most of them offer outstanding coverage options. Here are the best universal insurance products AIG offers:

  • AG Secure Survivor GUL II®
  • Elite Global Plus II®
  • Secure Lifetime GUL 3®
  • Elite Index II®
  • Asset Protector®
  • Value+ IUL
  • Elite Survivor Index II®

1. AIG Secure Survivor GUL II

This universal life insurance policy is designed for people between the ages of 50 and 75, and it helps safe guard assets or protect businesses by helping minimize taxes. 

This guaranteed universal life insurance product offers a minimum level death benefit, if the policy remains active.

2. Elite Global Plus II

This universal life insurance policy is designed to help people accumulate cash value, and they also get protection for the death benefit of their life insurance. 

The cash growth is based on the performance of various indexes in the global trading markets.

3.Secure Lifetime GUL

This universal life insurance product is the simplest Universal Product offered by AIG, and comes with cash growth, and a level death benefit. 

It also has allowance for changes that people may want to make with their policy.

4. Elite Index II

This is an indexed universal life insurance product, and is one of the simplest policies offered by AIG. The product offers you with all the benefits of an IUL, and keeps your money safe and secure, while you also get a death benefit. 

There is also a special benefit, apart from the death benefit, which is only offered to people suffering from terminal or chronic illnesses.

5. Asset Protector

This universal life insurance product comes with additional policy benefits, which can be used as a death benefit for covering medical bills, while the insured is still alive. Anyone that is above the age of 85 will get extended access, along with those suffering from chronic illnesses.

6. Value + IUL

This universal life insurance product offers a simplified policy that is meant to cover death benefit gaps in an IUL. It offers policy cash growth, and death benefit protection, which means you get greater help for business and personal expenses in the future.

7. Elite Survivor Index II

One of the best things about AIG is that it understands that everyone has different requirements and circumstances in life. Therefore, they want life insurance policies that don’t have any risk attached to them, and this universal life insurance product does that. 

The Elite Survivor Index II policy offers several options to the policyholder. It has 3 separate interest crediting options, which allows the insurer to choose one that meets their goals for life insurance and investment needs.

8. Variable Universal Option With American General Life Ins.

This variable universal life insurance product is ideal for people who have knowledge about the dangers and changing nature of mutual funds, and how they add aggressive growth in the insurance policy. If you want to acquire this policy, you must talk with a registered representative to qualify.

aig life insurance reviews of company products and features

Living Benefits With AIG (American General Life)

Ah, the new kind of life insurance showing it’s face. This is commonly known as life insurance that includes living benefits. We have good news. AIG does offer this benefit that’s automatically built into the products in the form of an ADB rider (Accelerated Death Benefit Rider).

With AIG, if you are diagnosed terminally ill with the life expectancy of 12 months or less (certified by a licensed physician) you can accelerate up to 75% of your death benefit while living.

Here’s an example. Original policy death benefit 500,000.00

Diagnosed Terminally Ill And Elect to Take the ADB Benefit

500,000.00 x .75% = 375,000.00

The 375,000 Provided to you will be to help cover cost for in home care, terminal care and to make sure your family does not go bankrupt during the process. 

You may think you don’t need this added benefit but trust me, it’s likely you may and if it’s free and built in to the policy automatically, why complain?

Does AIG Offer Whole Life Insurance?

Yes AIG offers whole life insurance in the form of the guaranteed issue whole life policy. Outside of this option, AIG does not offer other traditional forms of whole life insurance. However, they do offer the nice array of Universal Life Products we discussed previously. See below for more information on the 1 product whole life product AIG does offer.

AIG Unique Underwriting Niches

A positive and a negative with AIG is the unique underwriting niches. Beware however, typically in the life insurance industry and market, when a company has some strengths, they also have some weaknesses.
 
The same applies to American General Life Insurance Company. Let’s first cover where AIG really shines and helps individuals with unique needs and medical backgrounds. In case you aren’t familiar with what we are referring to when we say “unique underwriting strengths”, we are simply referring to AIG having the ability and being known for offering excellent coverage for individuals with particular high risk medical conditions.

Many companies do not have such unique underwriting strengths so it’s definitely something to consider if you fall into these categories.
 

AIG Underwriting Strengths

  • Anxiety and Depression – Preferred Rates Still Possible (Rare)
  • Cigar Smoking – Still Eligible To Be Considered a Non-Smoker if You Smoke Less than 52/Year
  • Very Lenient With Height and Weight- Great For Individuals Who Are Possible Morbidly Obese
  • No Treadmill Testing For Any Life Insurance Products or Policies
    Automatic Table Shave Program for Permanent UL Products (Automatically Bumps you Up 2 Classes)

Now, we said that with strengths comes a few downfalls, here is the honest truth behind AIG Underwriting

AIG Underwriting Weaknesses

Extremely Slow Underwriting Turn Around- Not a Big Deal If You Are Willing To Wait

AIG Guaranteed Issue Product

Now, this is something to rave about with AIG and personally as an Independent Life Insurance Agent, I have nothing but good things to say about this product AIG offers.

For a full scoop on the AIG GI product, be sure to revisit the link at the top of this blog post. 

It will re-direct you to another post we have specifically to gloat about this product. This AIG GI policy is fantastic

If you fall between the ages of 50-85 and have health conditions that know other company will insure you with, this the product to go with. Hands down, no questions asked.

I don’t care which Agent you have spoke to or who thinks they can beat this product because they can’t. Not Jake from State Farm and not Alex Trebec From Colonial Penn.

It’s no questions asked as long as your a US citizen, automatic approval, the lowest rates and good for life. That’s right. It’s good for life. 

Yes, it has a waiting period like all (no-questions/no-exam life insurance policies have) but it includes living benefits, has 10% interest earned during this period and also covers accidental death.

It’s fantastic. Be sure to read our review at the link we provided at the top of this article or just simply google AIG GI REVIEWS, I’m sure they are all positive. 

No joke, it’s that good. 

What Is AIG Direct?

AIG Direct is another method of purchasing life insurance. AIG Direct is the ones with the fancy commercials and advertisements flaunting that they can save you 70% on your term life insurance.

AIG Direct doesn’t allow you to work with an Independent Agency such as Good Life Protection and is a direct to consumer product.

If you missed it upon first view, their is a link at the top of this post that will guide you through what AIG Direct is and how it works.

How Do I Contact AIG?

Here is the contact information if you wish to contact AIG directly for any of your life insurance needs or questions for death claims or other service work that you need performed for your life insurance policy.

AIG Company Address

175 Water Street

New York, New York 10038

AIG Company Phone Number and Direct Contact

(212) 770-7000

Names for American General Life Insurance Company

American General Life Insurance Company, AIG Life and Retirement, AIG Property and Casualty, American International Group, The United States Life Insurance Company in the City of New York

What Should You Do Next?

If you are confident that you need to purchase life insurance to protect not only yourself but your family and finally achieve peace of mind, we recommend you begin by filling out the instant quote form on the right hand side of the screen or by using the “orange” get rates button if you are using a mobile device.

Listen, AIG is a top dog in the industry. Nobody is claiming differently. That doesn’t mean that they fit the bill for what you are looking for or what your families needs.

It also doesn’t mean that they are the cheapest option for you and your family. Every individual has unique underwriting circumstances that can range from health problems to even previous bankruptcies.

Yes AIG is fantastic at what they do but we highly recommend you talk to an Independent Agent and at least hear all of your options. You could end up wasting way more money than you think.

Trust me. I’ve seen it hundreds of times in my career. It happens all of the time.

Final Word, Is AIG A Good Life Insurance Company?

The goal of our AIG Life Insurance review was to provide you with an honest company review of AIG.

It would only be fair to say YES, AIG is a GREAT life insurance company but again, that doesn’t mean they can offer you the best rates or serve you best.

When it comes to life insurance corporations in the United States, there aren’t many bigger than AIG.

The company is a pillar in the industry, and offers some of the best life insurance products and policies that you are likely to find. 

They have extremely strong financial strength and customer service ratings but as always, we always recommend using an Independent Life Insurance Agent to compare all options.

If you prefer to do it alone, use the instant quote form on the right to get started. Not only can you review AIG life insurance rates but review the rates from all the top life insurance companies we know and trust.

Did you enjoy and find our AIG Life Insurance review useful? Comment below. We would love to hear from you. In addition, don’t forget to stop by our related questions below in case you have any further doubts or information you need to gather.

Related Questions

Does AIG Offer Auto Insurance?

Yes, AIG currently offers auto-insurance through it’s subsidiary AIG Direct. 

Does AIG Offer Commercial Insurance Products?

Yes, AIG currently offers commercial insurance products through it’s subsidiary, AIG Direct.

Does AIG Offer Accident and Health insurance Coverage?

Yes, AIG offers accident and health insurance.

AIG currently offers this coverage in the form of accidental death and dismemberment coverage.

This is beneficial only if you can’t qualify for traditional life insurance policies and need coverage in case an accident was to happen.

These policies can help cover and provide benefits to your family if your are killed or injured in automobile accident and other various forms of accidents as opposed to traditional life insurance that covers you regardless of the cause of death.

(Updated March, 26th 2019 to reflect new Financial Strength and BBB Ratings)

FILED UNDER – LIFE INSURANCE COMPANY REVIEWS

Resources: AIG

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.