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AIG life insurance review 2020
Last updated:
This major insurer stands out for offering unique riders and a string of universal life insurance policies.
finder.com's rating: 4 / 5
★★★★★
- Get a quote if… You want to choose from a selection of policies.
- Pick something else if… You have a pre-existing condition.
18 to 75
Issue Age
$5,000 to $2,000,000
Coverage
Yes
Medical Exam Required
Details
| Free quote | Online, Phone. |
|---|---|
| Monthly cost | $14/month |
| Policies | Term, Whole, Universal, Quality of Life, Permanent, Guaranteed Issue Whole Life Insurance, Accidental Death Insurance |
| Coverage maximum | $2,000,000 |
| Term lengths | 10, 15, 20, 25, 30, 35 years |
| Riders | Accelerated death benefit rider, Accidental death benefit rider, Child rider, Waiver-of-premium rider |
| Medical exam required | Yes |
| Available states | All states except NY and MT |
| Issue age | 20 - 85 years old |
Expert review
Review by
Julia Cameron
julia.cameron@findercrew.comJulia Cameron is a writer and editor who has experience in finance, mergers and acquisitions, content marketing and immigration law. She has a passion for interior design and an affinity for Old Florida, where she lives with her family.
Expert review
AIG is a strong choice for life insurance if you’re looking for term or universal coverage. Its prices are competitive, but its underwriting guidelines are often stricter than its competitors’ — so it may not be the best choice for those with pre-existing conditions.
What's in this guide?
How much does AIG life insurance cost?
We pulled quotes to get estimated monthly premiums for a $500,000, 20-year term life policy from AIG for a man and woman in great health.
| Age | Man | Woman |
|---|---|---|
| 20 | $25.22 | $19.66 |
| 25 | $25.22 | $19.66 |
| 30 | $25.94 | $20.64 |
| 35 | $27.23 | $23.21 |
| 40 | $36.46 | $30.86 |
| 45 | $57.88 | $44.63 |
| 50 | $92.08 | $68.91 |
| 55 | $144.88 | $107.73 |
| 60 | $257.65 | $185.53 |
| 65 | $473.00 | $338.58 |
| 70 | $951.18 | $672.32 |
*Rates are provided by Policygenius and are valid as of August 2020 in all states except New York and Montana.
What affects my rates with AIG?
Along with age and gender, AIG factors your health status and habits into your rate. To reach AIG’s Preferred Plus class, you’ll need to meet some requirements:
- Blood pressure. Your blood pressure should be 140/85, until age 60 when the number increases to 150/85.
- Cholesterol and HDL ratio. If your HDL ratio is 5.0 or below, your overall cholesterol must be under 215. For an HDL ratio of 4.5 or below, that cholesterol number increases to 290.
- Driving record. Your record shouldn’t include DUIs, suspensions or reckless driving over the past seven years.
- Family history. Your parents can’t have a history of coronary artery disease or cancer before age 60. The restriction lifts after age 65.
- Personal history. If you’re not age 60, a cancer diagnosis or another impairment may disqualify you for preferred rates.
- Tobacco use. You must prove that you haven’t touched tobacco over the past five years.
How do I sign up?
With AIG, you can start the quote process online, using theses steps:
- From AIG’s individual life insurance page, click Get A Quote for the type of policy you are interested in.
- You’ll be taken to a page where you can enter your personal information, including contact info, nicotine use, birthdate, height and weight, and desired coverage amount. Then click Get Your Free Quote.
- An AIG agent will call you to provide a quote and discuss your life insurance options with you.
What types of life insurance coverage does AIG offer?
AIG issues both term and permanent policies. Its lineup includes:
- Term life. AIG’s term life policy, Select-A-Term, offers temporary coverage for 10, 15, 20, 30 or 35 years. You can convert your policy to a permanent plan before age 70.
- Universal life. Unlike many insurers, AIG sells seven universal policy options, each offering possible cash value growth as well as flexible premiums and death benefits. Some policies build cash value based on an index’s performance, like the S&P 500.
- Whole life. The insurer offers a guaranteed issue whole life policy for people between ages 50 and 85. It offers lifelong protection without a medical exam and builds cash value at a fixed interest rate.
Does AIG offer burial insurance?
Yes. Seniors between ages 50 to 85 qualify for AIG’s burial insurance policy, with its coverage ranging from $5,000 to $25,000. The policy is guaranteed-issue coverage, meaning that applicants won’t need a health questionnaire or medical exam to qualify.
AIG also stands out with its living benefits, a rare finding for final expense policies. If you’re diagnosed with a terminal illness, you can access up to 50% of the death benefit to cover medical or other expenses — though you’ll pay an administrative fee.
What riders can I add to my life insurance policy?
You can bridge any gaps in your coverage with the following riders:
- Accelerated death. Provides an early tax-free payout if you’re diagnosed with a terminal or chronic illness. Policyholders may be eligible for a monthly payout consisting of a predetermined portion of the death benefit.
- Accidental death benefit. Pays double the death benefit if your death is a result of an accident.
- Child. Provides temporary coverage for your children up to age 25 and up to a $25,000 maximum.
- Waiver of premium. Waives premium payments if you become fully disabled.
AIG reviews and complaints
While AIG isn’t accredited by the Better Business Bureau (BBB), the organization awards AIG a B rating for its customer engagement as of October 2020. This rating reflects that the company hasn’t resolved a handful of complaints filed against it.
The BBB also records over 300 complaints for AIG since 2017, with most customers complaining about slow responses and trouble with getting claims paid out. However, these ratings reflect the company’s products as a whole, not just its life insurance products.
In J.D. Power’s 2019 Life Insurance Study, AIG ranked number 24 out of 24 companies surveyed, showing that it has room for improvement with its customer satisfaction.
AIG finances
AIG is highly rated for its financial stability, but it’s had its share of bad press. The company faced controversy after receiving an $85 billion bailout from the US government during the 2008 financial collapse. It’s since rebounded to become one of the world’s largest insurance providers.
Pros and cons of AIG
Pros
- Range of riders. The insurer offers unusual riders, like the Lifestyle Income rider that lets you withdraw up to 10% of your policy’s value each year after your 85th birthday.
- Multiple types of universal life policies. If you’re looking for a universal life insurance policy, AIG’s seven options cater to a variety of needs and investment risks. You won’t find this many options with all insurers.
- Financial strength. AIG has an A (Excellent) rating with AM Best, pointing to its ability to pay claims for the foreseeable future.
Cons
- Lengthy claims process. Extensive paperwork and calls aren’t exclusive to AIG, but you might wait weeks for approval and payment of your claim.
- Strict underwriting. AIG’s underwriting guidelines are strict compared with competitors, not catering to every applicants’ needs.
Compare life insurance companies like AIG
Wondering how AIG’s coverage and benefits stacks up to competitors? Tap the Compare box to see up to four companies side by side.
Frequently asked questions about AIG
Life insurance ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.
