AIG Life Insurance Review (2024) (2024)

AIG has a solid financial strength rating of A from A.M. Best, a credit rating agency that gives insurance companies financial strength ratings.

AIG scores well for policy types, riders and brand trust, according to our comprehensive review standards. However, it may not be the best pick for customer service. Although we are unable to experience its policies firsthand, it ranks 19 out of 22 companies in the J.D. Power 2022 U.S. Individual Life Insurance Study and has a high complaint ratio according to the NAIC.

Life insurance is a contract between a person who agrees to make premium payments and an insurer that agrees to pay a death benefit to designated beneficiaries when the policyholder dies. The premium costs and policy amounts vary depending on several factors, such as age, gender, health and lifestyle.

Some whole life insurance policies have a cash value in addition to the death benefit value, functioning as a savings or investment account that earns interest and can be borrowed against in certain situations.

You can learn about the basics of life insurance here. When shopping for a life insurance policy:

• Choose the type: Term or whole life.
• Identify potential riders to customize the policy for you.
• Determine the amount of coverage and time you need it.
• Ensure competitive quotes are for the same coverage.
• Check each company’s financial health and customer ratings.

AIG offers the following types of policies.

Term Life Insurance

Term life insurance is a policy that lets a policyholder buy coverage for a specific period, generally between 10 and 30 years. However, AIG offers policies up to 35 years in some cases. If the insured person passes away during that period, the insurance company will pay a predetermined amount to the beneficiaries named in the policy. When the policy period ends, the policy is no longer in force.

Many companies offer term insurance policies, and you can see our top term life insurance providers here. For an even longer term, up to 40 years, consider Prudential life insurance.

With AIG, your age determines the term periods you’re eligible for.

AIG’s term life insurance has a minimum face value of $50,000, but you can purchase up to $10 million in coverage if approved.

Term policies have level premiums throughout the life of the policy. You can renew your policy annually after the initial term but will pay more after each renewal. A policy can be renewed until you turn 95.

Because AIG term insurance has flexible terms and amounts, you can ladder life insurance policies to meet financial situations throughout your life. Laddering allows you to determine the exact periods you need more or less insurance and combine more than one policy to fit that situation.

Term policies are also convertible until you reach 70. You can convert an existing policy to a whole or universal life insurance policy if you’re faced with a situation or illness that makes it difficult to find affordable permanent coverage. AIG has no requirement to demonstrate insurability before converting to a permanent life insurance policy.

AIG also offers a return of premium variation on its Select-a-Term policy. A return of premium policy is limited to those under 55 with a customizable length that starts at 20 years and a minimum policy amount of $100,000. However, the cost of a return of premium policy is typically about two to three times the cost of a standard policy. With this option, you can surrender your policy and receive your full amount paid in premiums, convert to a whole life policy or buy paid-up life insurance up to age 95.

AIG term life insurance riders

AIG’s term life insurance policies can be customized with riders which enhance coverage in certain situations. The following riders are available for AIG’s term policies.

• Accidental Death Benefit. This functions like an accidental death insurance policy, providing up to $250,000 in additional coverage or the term policy’s face value if it’s less than $250,000.
• Child rider. This lets you cover all your children with a single rider. You can purchase between $500 and $25,000 of coverage which remains in force until your child turns 25 or you turn 65.
• Terminal Illness. If you’re diagnosed with a terminal illness and have less than two years to live, you can receive a portion of your death benefit while still alive. AIG offers this additional coverage free with term life insurance policies.
• Waiver of Premium rider. This rider waives premiums if a policyholder becomes disabled for at least six months. Premiums are waived as long as the total disability persists unless you become totally disabled after age 60, in which case the coverage extends for up to one year or until you turn 65.

Permanent Life Insurance

Whole Life Insurance is considered a form of permanent life insurance that provides coverage for the policyholder’s entire life as long as premiums are kept up to date. Whole life policies also have a cash value component that term policies do not, meaning you can borrow against the premiums you’ve paid into the policy in most cases.

AIG Life Insurance offers the following types of whole life and universal life policies.

AIG Guaranteed Issue Whole Life insurance. If you’re between 50 and 85, you can get up to $25,000 in coverage that covers expenses associated with the policyholder’s death. AIG pays a reduced death benefit during the first two years of coverage unless you die in an accident. This is also referred to as burial insurance or final expense insurance.

Burial insurance policies also come with chronic illness and terminal illness riders at no cost, which provides benefits while you’re still alive if you become severely ill.

Value+ Protector and the Max Accumulator+ Indexed Universal Life insurance policies. Both offer permanent coverage, and a portion of the premiums fund the policy’s cash value. This cash value can either be held in a fixed interest rate account or invested in index accounts similar to mutual funds. AIG universal life policies are available for people between 18 and 80, with a minimum face value of $50,000.

Accumulator+ indexed universal life policy. This universal life policy lets you purchase coverage with no exam if you’re 50 years old and your policy’s face value is below $500,000. The policy’s cash value can be accessed via withdrawals or policy loans, similar to most universal life policies, but you may also have the option to purchase paid-up additions.

AIG’s guaranteed universal policies can also be customized with the accelerated access solution, enhanced surrender value, and lifestyle income solution riders.

AG Platinum Choice VUL. This variable universal life insurance policy is similar to the indexed universal policies but offers more cash value investment options. Variable policies are available up to age 80 and require a $100,000 minimum face value.

The company also offers accidental death and dismemberment (AD&D) insurance which requires no medical exam, with policies up to $500,000 in coverage for people 18 to 80.

Life insurance rates are competitively priced throughout the industry, and while each insurer has its own underwriting tactics, several factors are considered to be industry standard. The premium you pay usually depends on your:

• Age
• Health and medical history
• Occupation
• Gender
• Lifestyle
• Policy type
• Coverage amount

Some states allow insurers to factor in a credit-based insurance score when determining premiums.

AIG’s term life insurance rates aren’t the cheapest we’ve reviewed, but they are consistently lower than several national competitors. Nonsmokers generally benefit from rates that are over 15% lower than those of competitors.

AIG doesn’t have local agents, so you must contact AIG at 800-CALL-AIG (1-800-225-5244), 1-888-280-1243, or 1-800-448-2542.

Here is a snapshot of the costs of AIG life insurance for a 25-year-old male.

*quotes are run based on $100,000 of coverage with preferred, non-tobacco health ratings.

AIG is underwhelming when it comes to third-party consumer satisfaction ratings. It scores well below average in J.D. Power’s 2022 U.S. Individual Life Insurance Study and has an unfavorable National Association of Insurance Commissioners (NAIC) complaint ratio.

Additionally, we read over 100 reviews posted by real AIG customers on trusted aggregators like the Better Business Bureau (BBB) and TrustPilot to understand how consumers perceive the brand. Here’s what select policyholders had to say.

“Made a claim on our critical illness cover due to my wife developing young onset Parkinson’s disease…AIG paid out in full..thorough and helpful throughout the whole process…I can’t thank them enough” —Andrew Hurd via TrustPilot

“What can I say, from reading all the negative reviews I was very skeptical about my late mother’s life policy paying out. My mother passed away on October 13th and today, November 22nd, the policy was paid out in full. I can’t thank AIG enough for their quick settlement and professional work practices at this difficult time. So, five stars from me.” —Dorothy via TrustPilot

Negative reviews often mentioned lacking customer service, from missing policy documents to long wait times to difficulty collecting death benefit payouts.

“My father died on October 17, 2022. He had a policy with [AIG]. We have sent supporting documents to them on several occasions. First, they could not locate the policy. Now they acknowledge there is a policy, but they do not answer the phone. I have been on hold for 1:15 and counting with no end in sight. A very rude man answered after an hour only to tell me I reached the wrong department. He transferred me to customer service, and I have been on hold ever since. This is outrageous.“ anonymous via BBB

“Failure to pay out a death claim. My mother died back in 2021. It is 2023 and I am the son and beneficiary. Multiple phone calls with customer service [about] paying out the death claim. I have sent in a completed package with all details of both my mother’s certificate of death and family trust documents as requested, and nothing. Each time I call, I get asked to fax in this statement or a form which they never send, yet tell me that they have been trying to get ahold of me which is a [lie]. They claim that they don’t email but use fax, which is a 30 year old technology, and snail mail. No fedex. Completely unacceptable and insulting.” —anonymous via BBB

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AIG may be a good choice if you want to customize a policy or choose from a wide range of options with rates generally lower than other providers. However, the company has a poor customer service reputation, which means it might be a good idea to shop around for other options if this is especially important to you.

Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:

• Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy installer important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
• Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
• Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
• Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.

We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read ourfull life insurance methodologyfor reviewing and scoring providers.AM Best Disclaimer

Anthony Martin, CEO and Founder at Choice Mutual, is a nationally licensed life insurance agent with 10+ years of experience and an official member of Forbes Finance Council. Obsessed with finances, building tech, and collaborating with other successful entrepreneurs.

Mike Miller is a writer with a decade of experience producing product and service content to help consumers make informed purchasing decisions. Mike has a bachelor’s degree in creative advertising. In his spare time, Mike enjoys riding and fixing motorcycles, reading a good book and spending time with his wife and two cats.