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AIG vs. Legal & General life insurance

How these big-name life insurance brands stack up when it comes to their premiums, product line-ups and reputation.

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Fact checked
AIG and Legal and General logos

For decades, AIG and Legal & General (formerly known as Banner Life) have been servicing Americans who need life insurance. While they’re both backed by financial strength and known for their affordable rates, they have a few key differences that may sway you one way or another.

Where you live is important, too. AIG writes insurance in 36 states, while Legal & General caters to the whole country.

Life insurance products with AIG and Legal & General

In terms of products, AIG has a more diverse product lineup, while Legal & General focuses on term life insurance as it openly believes it’s the best choice for most people.

AIG
Legal & General
Term
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Whole
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Universal
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Variable
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Final Expense
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Quality of life
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Guaranteed issue
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Protect your loved ones
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Costs

To give you an idea of how much you can expect to pay for coverage, these are the average monthly premiums for a $250,000, 20-year term life policy for those in perfect health. Typically, Legal & General has lower rates across the board than AIG.

GenderAge
AIG
Legal & General
Male20
$13.32
$13.33
Male30
$13.54
$13.33
Male40
$19.38
$19.26
Male50
$42.73
$40.85
Male60
$114.74
$111.13

GenderAge
AIG
Legal & General
Female20
$11.59
$11.52
Female30
$11.81
$11.74
Female40
$18.51
$15.67
Female50
$35.59
$31.17
Female60
$89.66
$78.83

Policy riders

Both insurers offer a range of riders that can help you to supplement your coverage to suit your needs. Not all riders are available nationwide, so be sure to ask your provider about which riders apply in your state.

AIG
Legal & General
Accidental death benefit. This doubles the death benefit if you die as a result of an accident.Accelerated death benefit. With this rider, you can collect up to 75% of your policy’s value if you’re diagnosed with a terminal illness.
Accelerated access. If you’re diagnosed with a chronic illness, this rider pays out a portion of your death benefit early.Children’s rider. Opt into this, and your policy will cover children under 25 years old (until you’re 65).
Children’s protection. This offers temporary coverage for your kids up to age 25, with a $25,000 maximum.Conversion. This gives you the option to convert to a permanent policy.
Lifestyle income. Once you reach 85, this allows you to withdraw up to 10% of your policy’s value each year.Term laddering. This allows you to purchase additional term coverage over time.
Terminal illness. This rider lets you withdraw up to 50% of your policy’s venue if you’re diagnosed with a terminal illness.Waiver of premium. If you’re fully disabled for at least six months, the insurer will waive your premiums but keep your policy active.
Waiver of premium. This waives your premium payments if you become fully disabled.

Financial strength

When you’re comparing providers, look at their financial strength. This is especially important for life insurance, as your beneficiaries may not file a claim for years — or even decades — after you purchase a policy.

These ratings point to each insurer’s ability to pay out claims.

AIG
Legal & General
A.M. BestA (Excellent)A+ (Superior)
Moody’sA2 (Stable)A2 (Stable)
Standard & Poor’sA+ (Strong)AA- (Very strong)
FitchA+ (Stable)AA- (Very strong)
JD Power2 out of 5 (The rest)N/A

Customer reviews

While ratings agencies focus on financial strength, forums like the Better Business Bureau (BBB) and TrustPilot highlight customer reviews.

AIG isn’t accredited nor rated with the BBB. Customers awarded the company one out of five stars, and the BBB recorded 144 complaints in the last three years — which isn’t unusual for such a large insurer. Many of the complaints centered on billing issues and lengthy claims, and AIG is in the process of responding to them.

Legal & General has a slightly better reputation with customers. Its BBB profile is still under Banner Life, and the company has earned an A+ rating for its interaction, engagement and transparency. The BBB has closed just four complaints in the last three years. On TrustPilot, Legal & General has four out of five stars, with customers commenting on the easy sign-up process and efficient service.

Bottom line

AIG and Legal & General are well-established in the life insurance world, and they both have the resources to pay out claims. But they have their selling points: AIG has a wider product lineup, and Legal & General (formerly known as Banner Life) has a stronger reputation among customers.

Availability comes into play, too. Legal & General writes insurance nationwide, while AIG is only licensed in 36 states. Whether you live outside those states or not, it’s always worth comparing your life insurance options.

Compare life insurance providers

Name Product Issue age Minimum Coverage Maximum Coverage Medical Exam Required
Sproutt
18 - 60 years old
$50,000
$5,000,000
No
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
Policygenius
18 - 85 years old
$10,000
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Depends on provider and policy
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Bestow
21 - 54 years old
$50,000
$1,000,000
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Affordable 10- and 20-year term life insurance policies with instant quotes and no medical exams.
Everyday Life
20 - 75 years old
$100,000
$10,000,000
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Build a customized laddering strategy to target specific financial responsibilities and save on term life.
Fabric
25 - 60 years old
$100,000
$5,000,000
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Get affordable term life insurance with accelerated underwriting or no-exam coverage up to $1,000,000. Available in all states except CA, NY and MT.
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