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Reviews.com rates AIG’s life insurance a 4.2 out of 5, based on customer satisfaction, available policies, riders, and more.
AIG offers term, whole, and guaranteed issue life insurance policies.
Potential customers can get a quote and purchase select life insurance policies on AIG’s website.
AIG Life Insurance is the 13th largest life insurance provider in the country, with 2.03% of the total market share. The company offers comprehensive life insurance coverage, with a number of policy options to choose from, including two guaranteed issue policies. Additionally, the company has excellent financial strength and over 100 years of industry experience. Like all life insurance companies, AIG has advantages and drawbacks. We put together an AIG Life Insurance review to help you decide if this company is right for you. We evaluated AIG based on its policy options, riders, third-party reviews for customer satisfaction, and accessibility.
AIG Life Insurance Overview
Reviews.com Score:
4.2
In business since:
1919
AM Best: AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
A
J.D. Power: J.D. Power scores are based on surveys for customer satisfaction and product quality.
742*
If you’re in the market for life insurance, AIG is definitely a provider to consider. The company has a strong reputation in the industry, is financially strong, and offers a variety of different policies. Plus, it’s easy to apply for a quote online through the AIG Direct website.
In terms of customer satisfaction, however, AIG is somewhat lacking. The company has a rating of 742 out of 1,000 by J.D. Power, which is considered below average. On a more positive note, AIG has fewer than average company complaints according to the National Association of Insurance Commissioners (NAIC) Company Complaint Index.
PROS
Flexible term limits:With AIG’s Select-a-Term life insurance, you can choose from 18 different term lengths based on your family’s coverage needs.
Guaranteed issue policies:AIG offers guaranteed issue whole life and guaranteed issue universal life policies, which anyone can qualify for.
Easy online application process:You can apply for any AIG life insurance policy online through the AIG Direct Life Insurance website.
Excellent financial strength:AIG has good financial stability, with an ‘A’ rating from AM Best, which indicates that the company is able to pay claims in full.
CONS
Can’t get an instant quote:Although you can apply for life insurance through AIG Direct, there is no option to get an instant life insurance quote online.
Relatively low term coverage limits:AIG’s coverage limits for term life insurance don’t exceed $1 million, which may be too low for some people.
Few online tools and resources:Navigating AIG’s website can be confusing, and it lacks important information about certain policies.
AIG Life Insurance Highlights
Coverage & Riders
Customer Experience
Before You Buy
AIG offers Select-a-Term ($100,000–$1 million), Quality of Life Flex Term (up to $2 million), whole ($5,000–$25,000), indexed universal, and guaranteed issue universal life insurance.
If you want to customize your policy, AIG sells a handful of life insurance riders that allow you to tailor your coverage around your personal needs. Some of the riders available include an accelerated death benefit rider, a child rider for kids under 19, and a terminal illness rider which allows you to pull money out of your death benefit to pay for end-of-life expenses.
AIG was rated 742/1,000 in J.D. Power’s 2020 U.S. Life Insurance Study, which is below the industry average benchmark of 763. However, AIG has fewer than average company complaints as reported in the NAIC Company Complaint Index. That’s impressive for a company of its size. Although AIG life insurance reviews are mixed in terms of customer satisfaction, a strong NAIC rating is a good sign that the company values customer service. the company has fewer than average company complaints as reported by the NAIC.
If you’re thinking about buying AIG life insurance, keep in mind that you won’t be able to get an instant quote or purchase a policy online. You can submit a quote request form on the website, but you’ll need to wait for an agent to reach out with your estimate.
AIG’s Select-a-Term life insurance policy is available in 18 different term lengths, over the course of 35 years, with level premiums and a guaranteed death benefit. It’s available for people up to age 70, and includes between $100,000 and $1 million in coverage. Term life insurance is a good option for healthy people and young families who want low-cost coverage for a set amount of time.
The Quality of Life Flex term life insurance policy includes free accelerated death benefit riders for chronic illness, critical illness, and terminal illness. This policy is available for people up to age 70, with a maximum lifetime payout of up to $2 million, and term lengths of 10 years, any duration between 15-30 years, or 35 years. This policy is a good option for people who want peace of mind knowing that if they get sick, their policy will cover them financially.
Whole life insurance from AIG offers protection for your lifetime. It includes level premiums, a guaranteed death benefit, and a cash value account that grows tax-free. Best of all, AIG’s whole life insurance policies are a guaranteed issue. It’s a great option for people with pre-existing conditions because it doesn’t require a medical exam. Coverage is available for people between the ages of 50 and 80, with policy limits between $5,000 and $25,000.
Universal life insurance coverage from AIG is guaranteed issue, which means regardless of your current health, pre-existing conditions, or family history of disease, you can get approved for coverage. Universal life insurance has a cash value component that grows at a fixed interest rate, and at a certain point, you can borrow the money and use the funds like a personal loan. It also has flexible premiums and an adjustable death benefit.
Like universal life insurance, indexed universal life insurance is a type of permanent coverage that has flexible premiums and an adjustable death benefit. The main difference is that the cash value gets invested in the stock market, and grows based on market performance. It’s a good option for people who want to build cash value overtime, and eventually have the ability to use the money to supplement income during retirement, pay for end-of-life expenses, and diversify their investment portfolio.
One of the biggest differences between AIG and State Farm is customer satisfaction. State Farm is the top-rated company for overall customer satisfaction in J.D. Power’s 2020 U.S. Life Insurance Study, whereas AIG is rated below average. Both companies offer term, whole, and universal life insurance, but State Farm doesn’t offer any guaranteed options.
AIG vs. Principal Financial
AIG and Principal Financial both offer term life and universal life insurance policies, but Principal Financial doesn’t offer a whole life insurance product. However, Principal Financial does offer survivorship insurance, which is not available through AIG. In terms of customer satisfaction, Principal Financial scored higher than AIG, and it also has a better financial strength rating.
AIG vs. Transamerica
AIG and Transamerica are comparable in a few ways. Both companies are rated below average for overall customer satisfaction by J.D. Power and have an A rating from AM Best. Both companies’ policy offerings are similar, but Transamerica offers final expense insurance, which AIG does not. Transamerica also offers more riders, with nine options to choose from, compared to AIG’s four riders.
Yes, you can borrow from your AIG life insurance policy if you have whole life insurance or universal life insurance. Both policies have a cash value account that grows overtime, and once the balance is high enough, you can pull the money out and use it like a loan.
Yes, AIG is a good life insurance company overall. It stands out for its industry reputation, excellent financial strength, and guaranteed issue policies. We also like that it’s easy to apply for coverage online.
AIG and American General Life are related. American General Insurance is a subsidiary of AIG, which stands for American International Group. American General Insurance policies are underwritten by AIG, but it’s not the same company
Methodology
We evaluated AIG life insurance based on riders, coverage, resources, financial strength and customer satisfaction to determine Reviews.com scores and create our best life insurance reviews. To compare life insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:
Number of Riders: The more riders a life insurance company has, the higher it scores in our Reviews.com methodology.
Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each life insurance company’s financial stability.
Coverage: Life insurance companies scored higher if customers can convert term to whole and if they offered multiple options under different types of life insurance policies.
Resources: Reviews.com compared website functionality for life insurance companies based on ability to receive online quotes, submit online claims, and read information on different policies available.
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
