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.

Last updated:

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

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
checkmark
checkmark
Whole
checkmark
checkmark
Universal
checkmark
checkmark
Indexed universal
checkmark
Final expense
checkmark

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:

Gender Age
AIG
Transamerica
Male 20
$15.82
$19.35
Male 30
$16.07
$17.20
Male 40
$21.75
$30.32
Male 50
$49.46
$57.83
Male 60
$144.17
$127.49

Gender Age
AIG
Transamerica
Female 20
$13.25
$13.33
Female 30
$13.61
$14.62
Female 40
$18.12
$24.94
Female 50
$38.48
$47.08
Female 60
$100.27
$125.78

*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

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

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. Best A (Excellent) A (Excellent)
Moody’s A2 (Good) A1 (Good)
Standard & Poor’s A+ (Strong) AA- (Very strong)
Fitch A+ (Very high quality) A+ (Very high quality)
J.D. Power 2 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 Coverage Range Medical Exam Required State Availability
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
All 50 states
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
21 - 54 years old
$50,000 to $1,000,000
No
Not available in Alaska or New York
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
20 to 60 years old
$100,000 to $8,000,000
No
Not available in New York
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 - 64 years old
$100,000 to $3,000,000
No
All 50 states
Customized term life insurance policies up to $3 million, no medical exam for certain applicants.
25 - 60 years old
$100,000 to $5,000,000
No
Available in all states except for Montana
Offers term life insurance with accelerated underwriting. No-exam coverage up to $1,000,000 for those who qualify.

Compare up to 4 providers

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site