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AIG vs. Transamerica: Which is better?

These insurers offer slightly different policies and riders — so the decision comes down to the coverage you’re looking for.

Updated

Fact checked

These insurers are big names in the industry, and for good reason. They’re comparable, so look to their policy offerings and riders to decide between the two.

Life insurance products offered by AIG and Transamerica

AIG
Transamerica
Term
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Whole
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Universal
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Indexed universal
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Final expense
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Costs

Your premium is tailored to your profile, and reflects your age, gender, occupation and lifestyle. Both insurers have similar price points, though you might be charged a slightly higher premium with Transamerica.

If you’re a healthy nonsmoker, here’s what you might pay monthly for a $250,000, 20-year term life policy:

GenderAge
AIG
Transamerica
Male20
$15.82
$19.35
Male30
$16.07
$17.20
Male40
$21.75
$30.32
Male50
$49.46
$57.83
Male60
$144.17
$127.49
Get a quote on Policygenius
GenderAge
AIG
Transamerica
Female20
$13.25
$13.33
Female30
$13.61
$14.62
Female40
$18.12
$24.94
Female50
$38.48
$47.08
Female60
$100.27
$125.78
Get a quote on Policygenius

*Based on sample rates from Policygenius, August 2019.

Policy riders

Both insurers allow policyholders to customize their coverage with riders, and each has a couple of standout riders. Transamerica offers return of premium (ROP) and decreasing coverage riders, while AIG has an unusual lifestyle income rider, which allows you to withdraw up to 10% of your policy’s value each year after your 85th birthday.

AIG

  • Waiver of premium rider
  • Accelerated death benefit rider
  • Accidental death benefit rider
  • Child rider
  • Terminal illness rider
Get a quote on Policygenius

Transamerica Riders

  • Waiver of premium rider
  • Estate protection rider
  • Final expense rider
  • Child and additional insured rider
  • Return of premium rider
  • Decreasing coverage rider
  • Whole life guaranteed insurability rider
Get a quote on Policygenius

Financial strength

When you’re narrowing down your list of providers, look at their financial strength. AIG and Transamerica score top ratings with the four major agencies, which means they have the cash resources to pay out claims.

In J.D. Power’s latest life insurance study on customer satisfaction, Transamerica ranked 18th of 23 insurers surveyed, and AIG ranked 22nd — so there’s room for improvement on both sides.

AIG
Transamerica
A.M. BestA (Excellent)A (Excellent)
Moody’sA2 (Good)A1 (Good)
Standard & Poor’sA+ (Strong)AA- (Very strong)
FitchA+ (Very high quality)A+ (Very high quality)
J.D. Power2 out of 5 circles or “the rest”2 out of 5 circles or “the rest”

Customer reviews and reputation

AIG and Transamerica both have an A- rating with the Better Business Bureau (BBB). The BBB records 153 complaints for AIG in the past three years, with most customers complaining about billing issues and the claims process. Customers award the company 1 out of 5 stars.

It’s a similar story with Transamerica. The BBB records 394 complaints over the past three years, and customers give the insurer 1.5 out of 5 stars.

Though these complaint counts seem high, they’re still relatively low given the size of each company.

Bottom line

These insurers have a robust range of riders and work to do on their customer reputations. But they vary in terms of their universal policy offerings and rates — with AIG being the more affordable option of the two.

To learn how their competitors stack up, compare life insurance providers.

Compare life insurance providers

Name Product Issue Ages Minimum Coverage Maximum Coverage Medical Exam Required
LadderLife™ Life Insurance
20 - 60 years old
$100,000
$8,000,000
No
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
Policygenius
18 - 85 years old
$10,000
$10,000,000+
Depends on provider and policy
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
Fabric
25 - 60 years old
$100,000
$5,000,000
No
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.
Haven Life
18 - 64 years old
$100,000
$3,000,000
No
Customized term life insurance policies up to $3 million, no medical exam for certain applicants.
Sproutt
18 - 100 years old
$50,000
$3,000,000
No
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
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Compare up to 4 providers

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