Life insurance is the best way to protect your family from financial hardship in the event of a disaster, and AIG is a name that people trust with a full slate of life insurance products.
Still, it’s best to compare life insurance companies and policies to decide which is right for you.
In this review, we’ll discuss the pros and cons of AIG Life Insurance and compare policy options for 2021.
Is AIG Good Life Insurance?
AIG, American International Group, is one of the top life insurance companies in the world.
Founded in 1919, the company has grown to nearly 50,000 employees and does business in over 80 countries worldwide.
Pros & Cons
AIG serves as one of the most recognized insurance brands with total assets of over $500 billion. As with any company, clients have reported both good and bad experiences with AIG.
First, let’s take a look at some of the pros and cons of AIG life insurance:
Pros
- Offers policies without a medical exam
- Policies with no waiting period
- Financially sound company
Cons
- Poor customer service
- A large number of customer complaints
Financial Ratings
AIG is a company with considerable financial strength that can meet its obligations.
- Fitch: A+
- Standard & Poor’s: A+
- Moody’s: A2
- A.M. Best: A
While AIG is not Better Business Bureau accredited, it does respond to complaints made there.
Life Insurance Products
The company offers a full range of life insurance policies, including term, whole, and universal life insurance.
AIG Term Life Insurance
AIG Life Insurance offers 18 different terms for consumers seeking term life insurance.
Select-a-Term
You can purchase insurance for a term of:
- 10 years
- 15 through 30 years
- 35 years
Plus, AIG allows policyholders to convert their policy into permanent life insurance before the end of the level-premium period or age 70, whichever comes first.
For AIG’s Select-a-Term life insurance, four unique riders can be added to the policy:
Quality of Life Flex Term
The Quality of Life Flex Term Life Insurance is similar to Select-a-Term.
However, the difference is it allows for early access to your policy’s value in the event of a critical, chronic, or terminal illness.
AIG Guaranteed Issue Whole Life Insurance
AIG only offers one type of whole life insurance, Guaranteed Issue Whole Life Insurance. This policy does not require a medical exam.
The maximum coverage is $25,000. If you pass away within the first two years of the policy, your beneficiaries receive all of the premiums paid, plus an additional 10%.
AIG Universal Life Insurance
AIG provides three different types of universal life insurance: indexed, guaranteed, and variable.
Indexed Universal Life Insurance
Value+ Protector and Max Accumulator+ represent the two varieties of IUL policy available.
Both policies provide permanent coverage where the paid premiums contribute to the cash value.
Both add interest based on the stock market index’s performance. Or, policyholders can also opt for a low, fixed interest rate.
Guaranteed Universal Life Insurance
This AIG life insurance policy is guaranteed not to lapse as long as you make the premium payments.
Also, you’ll enjoy a guaranteed fixed interest rate of 2%.
You can improve your guaranteed universal life insurance policy with several available riders.
Variable Universal Life Insurance
AIG’s Variable Universal Life Insurance is similar to the indexed policies. They both accrue interest based on the performance of the stock market.
But, there is one major difference.
The variable policy has no ceiling and no floor when it comes to the amount of interest that can be added or deducted from your policy.
The indexed policy has a ceiling of 10% and a floor of 0%.
AIG Life Insurance Riders
AIG Life Insurance offers several riders to supplement and enhance your base policy.
Waiver of Monthly Deduction Rider
This rider allows policyholders to waive monthly deductions if he/she is totally disabled for six months or more.
Waiver of Premium Rider
Like the Waiver of Monthly Deduction Rider, this rider allows insureds to waive premiums if completely disabled for six months or more.
However, those who become totally disabled after 60 will only receive the benefit for one year or until they reach 65, whichever is sooner.
Accelerated Death Benefit Rider
This rider is available to those individuals who have purchased an AIG Quality of Life policy.
The accelerated death benefit can assist insureds by covering lost income and health care costs if diagnosed with a critical, chronic, or terminal illness.
Enhanced Surrender Value Rider
The Enhanced Surrender Value Rider allows policyholders to surrender their policy after 20 years for 50% of the premiums paid up to that point.
You can also wait until the 25th year and receive 100% of the premiums paid or 40% of the face value, whichever is lower.
Accidental Death Benefit Rider
In the event of a death caused by an accident, the Accidental Death Benefit Rider provides up to $250,000 or the face value of the policy’s face value, whichever is smaller.
Unfortunately, this coverage becomes unavailable once an insured reaches a maximum age limit.
Lifestyle Income Solution Rider
When a policyholder turns 85 years of age, they can withdraw up to 10% of the policy’s death benefit per year.
Child Rider
This rider allows you to purchase up to $25,000 of coverage for a child between the ages of 15 days and 18 years old.
However, it expires when the child turns 25-years-old, or the policyholder turns 65-years-old, whichever is sooner.
Income for Life Rider
Available only for select plans, the Income for Life Rider allows policyholders to convert the cash value into a regular income stream.
Terminal Illness Rider
The Terminal Illness Rider permits policyholders to access death benefits if they have received a doctor’s diagnosis of two or fewer years to live.
Eligibility and Application Process
Depending on the type of insurance purchased, AIG welcomes all consumers between the ages of 20 and 80.
One benefit of AIG is that it offers some forms of life insurance without a required physical exam.
However, the application process is still arduous and requires the help of an agent.
With AIG Direct, you can easily purchase life insurance online.
Use the quote tool below to compare AIG Direct rates to other top providers online.
