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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.
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 | ||
| Male | 30 | ||
| Male | 40 | ||
| Male | 50 | ||
| Male | 60 |
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.
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.
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