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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.

Katia Iervasi

Updated Jan 21, 2021

Fact checked

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
Whole
Universal
Variable
Final Expense
Quality of life
Guaranteed issue

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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.

Gender	Age	AIG	Legal & General
Male	20	$13.32	$13.33
Male	30	$13.54	$13.33
Male	40	$19.38	$19.26
Male	50	$42.73	$40.85
Male	60	$114.74	$111.13

Gender	Age	AIG	Legal & General
Female	20	$11.59	$11.52
Female	30	$11.81	$11.74
Female	40	$18.51	$15.67
Female	50	$35.59	$31.17
Female	60	$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. Best	A (Excellent)	A+ (Superior)
Moody’s	A2 (Stable)	A2 (Stable)
Standard & Poor’s	A+ (Strong)	AA- (Very strong)
Fitch	A+ (Stable)	AA- (Very strong)
JD Power	2 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.

Find out how AIG compares to other top brands

Compare life insurance providers

Name	Issue age	Minimum Coverage	Maximum Coverage	Term Lengths	Medical Exam Required
Policygenius	18 - 85 years old	$50,000	$10,000,000	10, 15, 20, 25, 30 years	Depends on provider and policy	Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.	Go to site More Info	Compare	loading Fetching your data...
Bestow	18 - 60 years old	$50,000	$1,500,000	10, 15, 20, 25, 30 years	No	Get a quote in less than 10 minutes with on-the-spot approval and no medical exam.	Go to site More Info	Compare	loading Fetching your data...
Everyday Life	20 - 75 years old	$100,000	$10,000,000	10, 15, 20, 25, 30, 35 and 40 years.	No	Ladder multiple life insurance policies to save on the coverage you need for all your debts.	Go to site More Info	Compare	loading Fetching your data...
Ladder	20 - 60 years old	$100,000	$8,000,000	10, 15, 20, 25 or 30 years	No, for coverage up to $3M	Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.	Go to site More Info	Compare	loading Fetching your data...
Sproutt	18 - 60 years old	$50,000	$4,000,000	5, 10, 15, 20, 25 and 30 years	No	Compare 40+ insurers and apply online to get the lowest possible price — no medical exam required.	Go to site More Info	Compare	loading Fetching your data...
JRC Life Insurance	18 - 85 years old	$5,000	$50,000,000	10, 15, 20, 25, 30, 35, 40 years to lifetime/age 121	May be required	Compare policies up to $10 million from 45+ top insurance companies with the click of a button.	Go to site More Info	Compare	loading Fetching your data...
Nationwide life insurance	18 - 80 years old	$25,000	$10,000,000	10, 15, 20 and 30 years	Yes	Get term, whole, universal or no-exam life insurance with up to $1 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Haven Life	20 - 64 years old	$250,000	$3,000,000	10, 15, 20, 25 or 30 years available to those aged 20 - 49 years old. 10, 15, or 20 years available to those aged 50 - 64 years old.	No exams for some applicants	Fill out a quick online application and get approval in minutes with up to $3 million in coverage.	Go to site More Info	Compare	loading Fetching your data...
Fidelity	20 - 85 years old	$25,000	$1,000,000	10, 20, or 30 years	Depends on policy	Purchase term, whole and accidental death coverage online without the exam, with rates starting at a low $10 a month.	Go to site More Info	Compare	loading Fetching your data...
Quotacy	18 - 80 years old	$50,000	$65,000,000	10, 15, 20, 30 and 40 years	Depends on provider and policy	Score the lowest rate on life insurance by comparing no obligation quotes from 14+ companies online. No contact info, no spamming.	Go to site More Info	Compare	loading Fetching your data...
Dayforward Life Insurance	18 - 67 years old	$12,000	$500,000	10, 27 years	No exams for some applicants	Dayforward allows you to protect your family with life insurance that protects your income.	Go to site	Compare	loading Fetching your data...
Fabric	21 - 60 years old	$100,000	$5,000,000	10, 15, or 20 years	Depends on policy	No-exam term policies up to $1 million online, with the option to upgrade to permanent life insurance later.	Go to site More Info	Compare	loading Fetching your data...

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Katia Iervasi

Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).

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