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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.
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 |  | |
| Whole | | |
| Universal | | |
| Indexed universal | | |
| 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:
| Gender | Age | AIG | Transamerica |
|---|---|---|---|
| Male | 20 | ||
| Male | 30 | ||
| Male | 40 | ||
| Male | 50 | ||
| Male | 60 |
| Gender | Age | AIG | Transamerica |
|---|---|---|---|
| Female | 20 | ||
| Female | 30 | ||
| Female | 40 | ||
| Female | 50 | ||
| Female | 60 |
*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.
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