AIG term life insurance review March 2019 |

AIG term life insurance review

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  • Competitive prices
  • Flexible
  • Strong financial stability
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A diverse product lineup, flexible policy options and competitive pricing makes this a popular insurer.

After opening its US doors in 1926 as American International Underwriters Corporation, this provider sells a wide assortment of life insurance policies to protect your loved ones.

Its more than 90 million customers like its flexible plans and policy options at competitive prices. Here’s what to know about policies, claims and potential drawbacks with AIG.

Issue age 20-80 years old
Minimum coverage $50,000
Terms available 10, 15–30 or 35 years
Payment methods Credit or debit card
Medical exam required No medical exam required for guaranteed life insurance
Temporary underwriting coverage N/A


  • Strong financial stability.
  • Strong product lineup.
  • Flexibility.


  • Service many not be personal.
  • Lengthy claims process.
  • Strict underwriting.

What affects the cost of my policy?

In underwriting, insurers determine your monthly premium by considering the amount of your policy’s coverage and any riders along with your age, your gender, your family history and your risk of dying within your policy’s term.

Monthly rates of a policy from AIG

Based on rates provided by Quotacy for a person in great health, as of March 2018, you can expect to pay around $18-$19 a month for a $500,000 policy from AIG if you’re in your 20s. Monthly premiums increase over time as you age, reaching around $110 a month in your mid-50s.

See the full cost table below

While AIG isn’t accredited by the Better Business Bureau (BBB), the organization awards it an A+ rating based on business practices, transparency and customer feedback. But many customers complain about billing issues or unexpected fee increases. The company addresses and even resolves these complaints on the BBB website, a good sign that you’re dealing with a reputable company

Elsewhere online, customers praise AIG for affordable options and quick approval while mentioning its lengthy claims process.

AIG is highly rated for its financial stability. It quickly recovered from the effects of the 2008 financial collapse and is now considered one of the most financially stable insurance providers.

Top ratings agencies give it high marks:

A.M. Best A
Fitch A+
Moody’s A2
S&P A+

What is AIG known for?

AIG is highly rated for its financial stability and customer satisfaction, but its 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.

In fact, the government received equity in return for its intervention, which it sold for a $22 billion profit in 2012. Despite a turbulent few years surrounding the financial collapse, AIG is back on track with a range of financial services and support that customers rave about.


  • Strong financial stability. A trusted and financially secure provider, AIG is positioned to fulfill its debt obligations.
  • Strong product lineup. It many life insurance products can meet the needs and financial situations of most customers.
  • Flexibility. Most of AIG’s policies are flexible to some degree. Whether it’s the benefit amount or premium payments, you can adjust your plan to suit your needs.


  • Service many not be personal. You may not be able to foster a direct relationship with the person who sells you your policy.
  • Lengthy claims process. Extensive paperwork and calls aren’t exclusive to AIG, but you might wait weeks for your claims approval.
  • Strict underwriting. AIG’s underwriting guidelines can be strict compared with competitors, which might not meet the needs of all applicants.

Life insurance companies like AIG

Name Product Issue Ages Coverage Range Medical Exam Required
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
18 - 75 years old
$100,000 to $5,000,000
Depends on provider and policy
Apply for a simple instant-decision policy free of charge. Compare quotes from multiple A-rated carriers.
21 - 54 years old
$50,000 to $1,000,000
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
18 to 80 years old
$25,000 to $10,000,000
Depends on provider and policy
Compare quotes from over 40 highly rated carriers and get coverage shortly after approval.
20 - 80 years old
$25,000 to $10,000,000
Quickly get a quote for coverage with this marketplace, which compares term life insurance policies from 45+ carriers.
20 to 60 years old
$100,000 to $8,000,000
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
18 - 75 years old
$25,000 to $10,000,000
Yes, for policies over $1 million
Term life insurance with no medical exams for $1 million of coverage or less. Online application gets you a decision in 10 minutes.

Compare up to 4 providers

What life insurance coverage does AIG offer?

AIG offers a range of term, whole, universal and indexed universal life insurance plans, all with flexible policy options.

Its site is clearly structured to outline the benefits of each product, offering details and a free quote online.

Term life insurance

Select-a-Term offers adjustable financial protection over terms of 10, 15, 20, 30 or 35 years. You can convert these policies to a permanent plan up until the end of your level premium period or until you reach age 70 — whichever occurs first.

Whole life insurance

AIG’s Guaranteed Issue Whole Life insurance policy offers permanent coverage to those ages 50 to 85 without the possibility of denial. Level premiums and flexible coverage comes with a guaranteed death benefit. The cash value that accumulates is tax-deferred, and you can borrow against this value for fast access to funds, should you need it.

Universal life insurance

AIG’s seven universal policies are designed to protect your loved ones with a greater potential for cash value accumulation. While generally more expensive than whole life, these policies offer flexible benefits and premiums, allowing you to adjust your policy to suit your specific financial situation. For more stable growth, some policies offer cash value growth tied to the performance of global indices.

Where do AIG’s standard life insurance plans fall short?

Despite comprehensive policies and flexible plans, you might find that coverage simply isn’t enough.

To bridge the gaps, choose from a variety or riders that include:

  • Accelerated access. Provides an early tax-free payout if you’re diagnosed with a chronic illness. Policyholders may be eligible for a monthly payout consisting of a predetermined portion of the death benefit.
  • Lifestyle income. Allows you to withdraw up to 10% of your policy’s value tax free each year after age 85.
  • Accidental death benefit. Pays double the death benefit if your death is a result of an accident.
  • Children’s protection. 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.
  • Terminal illness. Allows you to withdraw up to 50% of your policy’s value if you’re diagnosed with a terminal illness.

How much does AIG life insurance cost?

Below are the monthly premiums for a $500,000 20-year term life insurance policy from AIG for an individual in great health. Rates are provided by Quotacy and are valid as of March 2018 in all states except New York and Montana.

Age Male Female
20 $19.81 $16.78
25 $19.81 $16.78
30 $20.24 $17.21
35 $21.54 $18.94
40 $30.62 $27.16
45 $49.65 $40.14
50 $77.76 $63.06
55 $124.91 $95.06
60 $213.57 $163.40
65 $400.84 $294.01
70 $809.55 $578.17

How can I get the best life rates with AIG?

Finding the best life insurance rate can be difficult if you aren’t aware of your provider’s underwriting guidelines.

AIG’s best rates fall into a “Preferred Plus” class that considers your lifestyle and health status, including:

  • Tobacco use. Preferred Plus members must have abstained from tobacco use over the past five years.
  • Your driving record. Your record must be free of DUIs, suspensions and reckless driving infractions over the past seven years.
  • Cholesterol/HDL ratio. If your HDL ratio is 5.0 or below, your overall cholesterol level must be under 215. For an HDL ratio of 4.5 or below, that number increases to 290
  • Your blood pressure. Your blood pressure should be 140/85 up until age 60, when the number increases to 150/85.
  • Family history. Your parents must not have coronary artery disease or cancer prior to the age of 60. The restriction is lifted after you’ve reached age 65.
  • Personal history. If you’re not yet 60, your overall health must be free of cancer diagnoses and any ratable impairment.

How do I file a life insurance claim with AIG?

Filing a claim with AIG takes time, but its site offers helpful instructions to guide you through what to expect.

1. Visit AIG’s website and click Claims.
AIG life insurance step 1

2. Scroll and click Life Insurance.

AIG life insurance step 2

3. Click Learn About Filing a Life Insurance Claim.

AIG life insurance step 3

4. Click Learn More in the AIG Life Claims Kit.

5. Prepare your documentation that includes:

  • The deceased’s full name and details.
  • A death certificate and obituary, if available.
  • Your original policy contract, if available.
  • Completed HIPAA authorization, if necessary.

6. Confirm that you’ve followed all instructions and checklists before submitting your claim

What other services does AIG offer?

AIG is a multinational financial corporation that offers multiple products beyond life insurance:

  • General insurance. Corporate, travel, quality-of-life and accidental death insurance
  • Retirement products. Group, individual and institutional retirement.
  • Investment vehicles. Mutual funds, annuities and structured settlements.

AIG in the media

In early 2018, AIG acquired Validus, an insurance and asset management corporation, for $5.56 billion. Validus provides extensive underwriting expertise, which AIG claims will allow it to expand and diversify its strategy to achieve profitable growth.

Bottom line

AIG is a strong choice for life insurance if you’re looking for term or universal coverage. Prices are competitive on comprehensive policies from a provider that’s highly regarded in the eye of the public.

That said, its underwriting guidelines can be more strict than competitors’, so it may not be the best choice for those with pre-existing conditions.

With so much riding on your decision, compare your life insurance options to find a policy that meets your and your family’s specific needs.

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