AIG life insurance review 2021
Fact-checked with HomeInsurance.com
AIG life insurance recently celebrated its 100th year in business. This company offers a complete range of life insurance products, annuities and home loans. AIG also offers very competitive rates for its insurance products, and its products are well-designed to fit any need or situation. AIG is also one of the biggest insurers in the world, with locations in over 80 countries around the globe. However, AIG lags its competitors when it comes to customer service satisfaction, which can be a concern for those who buy any form of permanent life insurance from the company.
- Date established: 1919
- Product offerings: Term, whole, universal, indexed and variable universal, AD&D
- AM Best rating: A+ (Superior)
- 2019 J.D. Power individual overall satisfaction rating: 2/5
- Availability: All 50 states in the U.S., and the District of Columbia
For consideration, here are a few of the advantages and drawbacks of AIG’s products and operations:
|Wide range of products, including no-medical-exam products||No quotes are provided online|
|Living benefit plans available||Time limits for conversion of policies can be a bit unclear|
|Policies with no waiting period are offered||Whole life insurance options are somewhat limited|
|Return of premium options are offered||Higher than average level of complaints with the NAIC|
|Term life policies for 35 years are available||Education regarding how policies work depends heavily on discussion with agent|
AIG life insurance coverages
AIG offers a complete range of insurance products that can be custom-tailored to meet virtually any type of need or situation. Both term and permanent products are priced competitively and offer additional riders and other benefits.
Term life insurance
AIG offers a range of term life insurance products for policyholders between 20 to 80 years of age. Offerings include term life policies with 10, 15-30 and 35 year periods. Coverage amounts range from $50,000 to $10 million. All policies have level premiums and are renewable for one-year terms, up to age 95. Term policies are also convertible until the insured reaches age 70. Return of premium policies are also available for insureds under the age of 55.
Universal life insurance
AIG also offers several types of universal life insurance policies. Its standard universal life insurance policies can have their cash values invested in either a fixed account or one or more of the underlying financial benchmark indexes that can be used. If the second option is chosen, then the potential interest that is paid will be limited by either a cap or a participation rate.
AIG’s variable universal life insurance policy invests the cash value in a range of mutual fund sub accounts, which provides a greater amount of flexibility for the policyholder. The values of these accounts will rise and fall in tandem with the financial markets, which does pose risk of loss, as well as potential for significant gains.
Guaranteed issue whole and universal life insurance and AD&D coverage
Finally, AIG offers guaranteed issue whole and universal life policies along with accidental death and dismemberment coverage. No medical exam is required for any of these policies, and each has a few additional riders that are offered at no extra cost.
Accidental Death and Dismemberment life insurance
This coverage is one of the few life insurance products that AIG offers without requiring any type of medical exam. Policyholders between the ages of 18 and 80 can get up to $500,000 of coverage, which pays out to your beneficiaries in the event you suffer from an accidental death or dismemberment. The amount of the benefit that is paid varies depending upon the type of injury.
AIG life insurance riders
AIG provides a comprehensive range of additional riders for both its term and its universal and whole life insurance policies. They are listed as follows:
Term insurance riders:
- Accidental death – this rider will pay out the lesser of an additional $250,000 or the face amount of the policy in the event of an accidental death. This additional coverage expires when the insured reaches age 70.
- Child rider – the Child rider allows the insured to purchase an additional rider for all of his or her children for $5,000 to $25,000 of coverage each. This rider will stay in effect until the child turns 25, or the insured reaches age 65.
- Terminal illness rider – the only free rider included with AIG’s term offerings. This accelerated benefit rider allows the insured to access a portion of the policy’s death benefit while they are still living, provided they are given less than two years to live (as determined by a medical professional).
- Waiver of premium – this rider allows the insured to waive the policy premiums if they become disabled for more than 6 months. The coverage only lasts for one year for policyholders who are at least 60 years old.
Guaranteed issue whole life insurance riders:
- Chronic illness rider – this accelerated death benefit rider allows the insured to access the lesser of all premiums paid, or half of the policy’s death benefit. The chronic illness rider can be triggered by either severe cognitive impairment, or the inability to perform certain activities of daily living (ADLs).
- Terminal illness rider – with this rider, the insured can access up to half of the policy’s death benefit if diagnosed with a terminal illness.
Guaranteed issue universal life insurance riders:
- Accelerated access solution – chronically ill insureds can access the death benefit in the policy in a series of tax-free monthly payments. Payments will continue until either the entire death benefit is used up, or the insured dies or recovers from the disability.
- Enhanced surrender value rider – This rider allows the insured to surrender the policy during the 20th year of coverage. AIG will pay the policyholder half of the total premiums that have been paid into the policy. Or you can choose to surrender the policy at year 25 and receive the lesser of all premiums paid into the policy, or 40% of the policy’s death benefit.
- Lifestyle income solution – This allows any policyholder who is at least 85 years old to access the death benefit of the policy for any reason they choose. Insureds can withdraw up to 10% of the policy’s total death benefit each year. Keep in mind any withdrawal will likely affect the total death benefit that will go to your beneficiaries in the event of your passing.
AIG life insurance customer and claims satisfaction
Although AIG does have some five-star reviews posted by clients on their website, the provider also has a higher-than-average number of customer complaints, according to the National Association of Insurance Commissioners. The complaint trends in 2017 and 2018 were twice the normal expected number of complaints for a company of its size. Many of these complaints were in regards to delays in servicing policies or lack of response to requests or questions. AIG received 2 out of 5 Power Circles in J.D. Power’s 2019 overall individual life insurance satisfaction study.
Other insurance products available
AIG also offers a line of property and casualty insurance products for individuals and businesses. These include various types of personal and professional liability insurance, as well as many other types of coverage for businesses and special situations or occurrences.
|Product||Discounts||J.D. Power rating|
|Excess Casualty Insurance||N/A||N/A|
|Multi-national Casualty Insurance||N/A||N/A|
|Primary Casualty Insurance||N/A||N/A|
|Product Liability Insurance||N/A||N/A|
|Homeowners Insurance||Multi-line discount||2/5|
|Auto Insurance||Multi-line discount||N/A|
|Excess Liability Insurance||N/A||N/A|
American Insurance Group is:
- 8th largest life insurance provider by market share
- A provider of several lines of property and casualty insurance for individuals and businesses
- Rated lower-than-average for overall customer satisfaction
Despite its relatively low ranking for customer satisfaction for an insurance company of its size, AIG is one of the industry leaders when it comes to offering innovative and affordable life insurance policies, in addition to a range of property and casualty insurance products. AIG also offers annuities, mutual funds and retirement products for businesses. This company is highly rated for its financial strength which plays a major role in the life insurance marketplace future life insurance payouts.