AIG American General Life Insurance Company Review

AIG Life Insurance Review

AIG life insurance products include options for almost everyone. The company offers term insurance, guaranteed universal life, indexed universal life, guaranteed issue whole life, and many other choices. AIG even provides retirement services, travel insurance, and annuities.

As one of the oldest insurance companies, AIG has weathered many storms, including the 2008 financial crisis. AIG remains the largest commercial and industrial insurance underwriter in the United States.

Despite a few potential drawbacks, the company continues to offer quality insurance options. To find out if one of these options meets your needs, use the information in this in-depth AIG life insurance review.

AIG Term Logo

AIG Life Insurance

  • Top rated life insurance company
  • Competitive rates on term, universal and whole life insurance
  • Unique policy riders

AIG Company History

The beginning of AIG dates back to 1919 in Shanghai, China. An American businessman by the name of Cornelius Vander Starr established American Asiatic Underwriters (AAU). This business went through several periods of reorganization and restructuring before becoming American International Group, Inc (AIG). 

You may also see the company mentioned as American General Life Insurance. This is because AIG acquired American General Corporation in 2001. No matter what you call it, AIG is now one of the largest insurers in the world, serving over 90 million customers.

The company headquarters is located in New York City with additional offices operating in over 80 countries and most major U.S. cities, including Houston, TX, St. Paul, MN and Nashville, TN

Many people remember AIG as a key player in the 2008 financial crisis. The federal government had to bail out the company for $182.3 billion, buying the majority of AIG stock. By 2012, the company had paid off its government loan, paying back a total of $205 billion.

In 2017, AIG restructured again, organizing its subsidiaries and departments into three segments – general insurance, life and retirement, and a technology-focused segment called Blackboard Insurance.

AIG Company Ratings and Financial Strength

Due to the government bailout, the company has a mixed reputation. Some consumers are concerned about the financial strength of AIG. However, the company has recovered from the financial crisis and maintains very positive professional ratings from the leading rating agencies.

A.M. Best
Fitch
Moody’s
S&P Global
Comdex
J.D. Power
A (Excellent)
A+ (Strong)
A2 (Good)
A+ (Strong)
80
741

Overview of AIG Life Insurance Products

AIG provides a wide range of insurance plans, including indexed universal life and term life. Some of the most popular AIG insurance options include:

Here is a detailed look at a few of the most popular AIG life insurance products.

Select-a-Term (Term Insurance)

AIG Select-a-Term is a fully customizable term life insurance coverage. The name of the coverage, “Select-a-Term” is because of the unique ability to pick contract lengths that are outside the traditional 10, 15, 20, 25 or 30 years. Select-a-Term offers up to 18 different fixed premium contract lengths starting from 10 years, 15 years and any number between 16 years up to a maximum of 35 years.

For example, with Select-a-Term you can pick a term length of 17 years, 23 years and so on, up to 35 years. For those who need term life insurance coverage for a specific amount of years outside of the traditional term lengths, Select-a-Term is term life insurance coverage for you. 

Death benefit plans start as low as $100,000 and up to a maximum of $10,000,000. The coverage also includes a conversion option that allows for the policy to be converted into permanent insurance without evidence of insurability. This option is only available as long as it’s elected prior to age 70 or before the end of the level-premium period, whichever comes first.

The Select-a-Term policies also include multiple riders that you can add to cover specific circumstances. These riders include:

  • Accidental Death Benefit – pays an extra death benefit of up to $250,000 if the death results from a qualifying accidental death.
  • Child Rider – provides coverage for eligible children between 15 days and 19 years old.
  • Waiver of Premium – waives premiums if you become totally disabled.
  • Terminal Illness Rider – advances up to 50% of the death benefit after diagnosis of a terminal illness.

AIG Select-a-Term

ISSUE AGES:

Issue Ages
10 Year: 20-80 (20-75 Smokers)
15 Year: 20-75 (20-70 Smokers)
16 Year: 20-70 (20-70 Smokers)
17 Year: 20-70 (20-70 Smokers)
18 Year: 20-70 (20-69 Smokers)
19 Year: 20-70 (20-67 Smokers)
20 Year: 20-70 (20-65 Smokers)
21 Year: 20-68 (20-63 Smokers)
22 Year: 20-67 (20-62 Smokers)
23 Year: 20-66 (20-61 Smokers)
24 Year: 20-64 (20-59 Smokers)
25 Year: 20-63 (20-58 Smokers)
26 Year: 20-62 (20-57 Smokers)
27 Year: 20-60 (20-55 Smokers)
28 Year: 20-59 (20-54 Smokers)
29 Year: 20-58 (20-53 Smokers)
30 Year: 20-55 (20-50 Smokers)
35 Year: 20-45 (20-40 Smokers)

DEATH BENEFIT AMOUNTS:$100,000-$10,000,000
HEALTH CLASSES:Preferred, Standard & Tobacco
RIDERS:

Accidental Death Benefit (Optional)
Child Rider (Optional)
Terminal Illness Rider (Included)
Waiver of Premium Rider (Optional)

CONVERTIBLE:Yes up to age 70 or before the end of the level premium period, whichever comes first.
RENEWABLE:To age 95
ADDITIONAL FEATURES

*Competitive term rates especially for tobacco users
*18 different term durations including a 35-year contract

*Optional electronic application process

Secure Lifetime GUL 3 (Guaranteed Universal Life Insurance)

Secure Lifetime GUL 3 is permanent life insurance coverage packed with many features. It has easily been named as one of our best options for guaranteed universal life insurance coverage.

For starters, Secure Lifetime GUL 3 offers a fixed premium, cash value growth, and guaranteed death benefit to age 121.  Included with the life insurance coverage is the Enhanced Surrender Value Rider. This rider offers a built-in return of premium feature that allows for the policy to be canceled for up to a full refund of all paid premiums. If coverage is surrendered after on the 20th anniversary year, 50% of the premiums will be returned back. When surrendering the policy on the 25th year, you will receive 100% of the premiums paid.

Secure Lifetime GUL 3 also offers a wide selection of optional policy riders that can be added to the coverage. Two riders that really stand out are the Accelerated Access Solution and Lifestyle Income Solution riders. 

The Accelerated Access Solution is ideal for anyone who may be concerned about the costs associated with a chronic illness. This rider pays out a monthly cash benefit due to a qualifying chronic illness.

The Lifestyle Income Solution is a unique rider that is perfect for anyone that may have the slightest concern about outliving their money. Beginning at age 85, this rider will begin to payout a stream of income directly from the death benefit tax-free.

AIG Secure Lifetime GUL 3

ISSUE AGES:18-80
DEATH BENEFIT AMOUNTS:$100,000-$10,000,000
HEALTH CLASSES:

Preferred, Standard & Tobacco

GUARANTEED MINIMUM INTEREST RATES:2%
NO-LAPSE GUARANTEE PERIOD:Age 121
RIDERS:

Accelerated Access Solution
Accidental Death Benefit
Children’s Insurance Benefit Rider
Enhanced Surrender Value Rider (Included)
Lifestyle Income Solution
Spouse/Other Insured Term Rider
Terminal Illness Rider (Included)
Waiver of Monthly Deduction Rider

ADDITIONAL FEATURES

*Guaranteed death benefit
*Fixed premium
*Available to applicants up to age 80
*Built-in return of premium feature
*Several optional policy riders

AIG Indexed Universal Options

AIG offers two different Indexed Universal Life Insurance options. These options include:

  • Max Accumulator+ (Indexed Universal Life)
  • Value+ Protector (Indexed Universal Life)

Max Accumulator+ is a flexible indexed universal life insurance policy ideal for retirement planning. It includes long-term cash accumulation connected to the indexed market performance. This coverage is available to applicants ages 18-80 but is ideal for ages 35-55 that have time to allow the life insurance coverage to grow in cash.

Max Accumulator utilizes three different indexed accounts which include S&P 500, ML Strategic and PIMCO Global. The coverage also offers a guaranteed minimum interest of 0.25% along with a maximum cap of 13%.

Several optional policy riders can be added to the indexed universal life insurance coverage including living benefits and a guaranteed income for life rider.

Interested in applying without the need for an exam? This option is available if coverage is less than $500,000 and you are between the ages of 0-50. 

Value+ Protector is a second flexible indexed universal life policy with added death benefit protection. It offers a balance between guaranteed universal life features and indexed universal life insurance. 

This coverage offers many of the same policy features and riders as the Max Accumulator+ option but can provide a death benefit that is guaranteed to age 100.

While many indexed universal life insurance policies include a level of risk, both AIG indexed insurance products tend to perform well. The company does a great job of managing the risks to provide customers with stable earnings over the life of the policy.

Max Accumulator+ IUL

ISSUE AGES:0-80
DEATH BENEFIT AMOUNTS:$50,000-$10,000,000

NON-MEDICAL UNDERWRITING

Ages 0-50 Coverage Amounts $50,000-$499,999
HEALTH CLASSES:Preferred, Standard & Tobacco
GUARANTEED MINIMUM INTEREST RATES:

Index Accounts: 0.25%
Basic Interest Account: 2%

INTEREST CREDITING CAP RATE:13%
INDEX ACCOUNTS:

*S&P 500 Index
*ML Strategic Balanced Index
*PIMCO Global Optima Index

MINIMUM NO-LAPSE GUARANTEE PERIOD:

20 years or to the attained age of 75, not to be less than 10 years

RIDERS:

Income for Life Rider
Select Income Rider
Dollar Cost Averaging Rider (Included)
Accelerated Access Solution Rider
Accidental Death Benefit Rider
Children’s Insurance Benefit Rider
Overloan Protection Rider (Included)
Terminal Illness Accelerated Benefit Rider (Included)
Waiver of Monthly Deduction Rider
Waiver of Specified Premium Rider

Value+ Protector IUL

ISSUE AGES:0-85
DEATH BENEFIT AMOUNTS:$50,000-$10,000,000

NON-MEDICAL UNDERWRITING

N/A
HEALTH CLASSES:Preferred, Standard & Tobacco
GUARANTEED MINIMUM INTEREST RATES:

Index Accounts: 0.75%
Basic Interest Account: 2%

INTEREST CREDITING CAP RATE:9.5%
INDEX ACCOUNTS:

*S&P 500 Index
*ML Strategic Balanced Index
*PIMCO Global Optima Index

MINIMUM NO-LAPSE GUARANTEE PERIOD:

To age 100

RIDERS:

Cash Access If Strong Index Performance Feature (Included)
Cash Access Excess Funding Feature (Included)
Premium Protection Rider 
Select Income Rider
Dollar Cost Averaging Rider (Included)
Accelerated Access Solution Rider
Accidental Death Benefit Rider
Children’s Insurance Benefit Rider
Overloan Protection Rider (Included)
Terminal Illness Accelerated Benefit Rider (Included)
Waiver of Monthly Deduction Rider

Guaranteed Issue Whole Life (GIWL)

AIG Guaranteed issue whole life insurance provides an option for those who may not be able to qualify for coverage due to medical reasons. This plan includes maximum coverage of up to $25,000 and you can absolutely not be denied coverage as long as you are between the ages of 50-85. 

You get guaranteed coverage and living benefits that you can access if diagnosed with a terminal or chronic illness. The living benefit features are included with the life insurance coverage at no additional costs. 

You do not need to answer any medical underwriting questions and approval can be made within the same day as applying for coverage. AIG will not deny your application for existing medical issues.

IMPORTANT: AIG Guaranteed Issue Whole Life Insurance is a graded death benefit policy. This means that the full death benefit is not payable until the start of policy year 2. If death occurs prior to policy year 2, the payable death benefit will be equal to a full return of premiums plus 10% interest. The only exception to the 2-year wait is if death occurred in the first two years as a result of an accident. Starting policy year 3, the full death benefit is payable regardless of how death has occured.  

AIG Guaranteed Issue Whole Life Insurance

ISSUE AGES:50-85
DEATH BENEFIT AMOUNTS:$5,000-$25,000
HEALTH CLASSES:N/A Guaranteed Approval
RIDERS:

Chronic Illness Acceleration Benefit (Included)
Terminal Illness Benefit (Included)

COVERAGE DURATION:Guaranteed to age 121

DEATH BENEFIT PAYOUT

Policy Years 1-2: 110% of all premiums paid
Policy Years 3+: Full Death Benefit
Accidental Death: Full Death Benefit

AIG Quality of Life (QoL)

AIG offers an additional line of life insurance products called Quality of Life (QoL) that provides not only death benefit protection, but also living benefit coverage. Quality of Life insurance policies are available on most of the life insurance options and include a built-in living benefit riders. These riders can advance a portion of the death benefit up to a maximum of $2,000,000 after the diagnosis of a chronic, critical, or terminal illness.

AIG offers four types of QoL policies, including:

  • QoL Flex Term
  • QoL Guarantee Plus GUL II
  • QoL Value+ Protector
  • QoL Max Accumulator+

QoL life insurance products cost a little extra but make up for it in with the added living benefit protection. When compared to other companies that offer the same features, such as ANICO and Transamerica, QoL is often priced the best.

Key Underwriting Advantages with AIG American General Life Insurance

Preferred Plus
Preferred
Standard Plus
Standard
Tobacco Use
None Past 5 Years
None Past 3 Years
None Past 1 Years
None Past 1 Years
Cholesterol
300
300
300
300
Chol/HDL
4.5 (5.0 Age 45+)
5.5 (6.0 Age 45+)
6.5 (7.0 Age 45+)
6.5 (7.0 Age 45+)
Blood Pressure
135/85
140/85
145/90
145/90

ANXIETY: Best health class will be considered if the condition is mild/moderate with good control of symptoms and no more than 2 daily medications have been prescribed.

CANCER: Possible best health class with a past history of non-melanoma skin cancer, cervical cancer, stage 1 seminoma, papillary thyroid cancer or remote history of melanoma in situ.

DEPRESSION: Ages 30-65 are eligible for best health class if the condition is minor and mild in degree. 

CIGAR SMOKERS: Cigar smokers who smoke no more than 1 cigar per week can be eligible for non-tobacco rates.

FAMILY HISTORY: Gender-specific cancer ignored.

MARIJUANA USE: If use is no more than twice per year may qualify for the best rates.

MILITARY: American General Life Insurance will underwrite active duty and reservist military as long as there are no pending orders to military hot zones.   

PILOTS: American General Life Insurance provides some of the best life insurance rates for pilots.

PRE-DIABETIC: Ages 50 and up will be considered for standard rates if A1C is under 6.4 and no formal diagnosis has been made. If  A1C is under 6.0 with no medication the best health class will be considered.

RECENT NON-SMOKERS: Tobacco-free for 12 months are eligible for standard plus rates.

Who is AIG Direct?

AIG Direct is a quoting service offered by AIG. The goal of this service is to provide visitors to the AIG website with an easy way to get quotes for coverage.

Unfortunately, many people find that AIG Direct life insurance plans connect them with pushy sales agents. AIG Direct comes from Matrix Direct, a division of AIG. Instead of an individual sales agent, you may end up speaking with a representative trying to push you to purchase additional insurance.

Additional AIG Products

Besides insurance, AIG offers a wide variety of financial services, including retirement services, fixed annuities, and even AIG auto insurance. 

The fixed annuities offer guaranteed interest earnings and protection from volatile markets. The retirement services include savings plans tailored to your individual needs. You also gain access to FutureFIT University, a resource for financial planning education.

AIG used to offer accidental death insurance but that coverage has since been discontinued from their line of insurance products. Beware of older online reviews of AIG as there are several out there still showing that this option is currently available. 

Is AIG Good for Life Insurance?

When you combine the variety of insurance policies and their individual options, AIG offers hundreds of choices. However, some of these choices may not provide the right solution for everyone. Here are the main pros and cons of choosing AIG life insurance products.

Pros

  • Positive professional ratings from most rating agencies
  • Variety of selections to suit almost everyone
  • Affordable premium payments for most insurance products
  • Underwriting policies for individuals in high-risk categories
  • Built-in living benefits at no extra cost with many insurance plans
  • Fast underwriting process with electronic application options
  • Online account management options, including electronic payments

Cons

  • Previous mistakes almost forced AIG to default on their investments
  • The customer service department has a mixed reputation
  • The company offers an overwhelming selection of insurance products
  • Many of the policies require a medical examination

AIG offers one of the largest selections of insurance products. You should have no trouble finding an insurance policy that meets your specific needs. 

The variety of options can also be a drawback. While you can speak with an individual agent to find the right policy, the choices can be overwhelming.

Many customers also complain about AIG customer service. When examining AIG life insurance reviews, common complaints include long wait times for phone calls, pushy sales agents, and confusing options. However, many other insurance providers also have mixed customer service scores.

You should also keep in mind that many of these policies require medical exams. If you have an existing medical condition that puts you in a high-risk category, you will likely pay higher premiums.

The company has a few drawbacks, but the underwriting strengths help balance things out. You have the option to apply for most plans online, receiving a quote within minutes. 

Depending on your medical history, AIG provides a faster underwriting process compared to many other insurance providers. The company also has options available for those in high-risk categories.

Along with these benefits, AIG allows you to manage most of the details of your plan via an online portal. After you log in, you can view your plan, make payments, and contact customer service.

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Jeffrey Manola

Jeffrey Manola

Jeffrey Manola is the owner and an experienced life insurance agent at Top Quote Life Insurance.

His goal is to provide online consumers with the absolute top quotes for all term life insurance, permanent life insurance and no medical exam life insurance. Not only does he strive to provide you with the best premium for your life insurance coverage, he also wants you to be well informed about life insurance coverage options and its importance.

Never hesitate to reach out to Jeffrey if you need help. Top Quote Life Insurance is more than just an online quoting agency we want to help you save money, protect your future, and earn your trust (888) 777-7574.

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