8.3 / 10

AIG Life Insurance Review

With competitive pricing and a range of flexible term periods for its Select-a-Term product, AIG is a solid option for many life insurance shoppers.

Tim Torres

Tim Torres

Published November 13, 2020

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AIG

OVERALL

8.3

THE GOOD

    Competitive pricing for all ages

    Customizable term policies

    Benefits common health conditions

    Strong financial confidence

THE BAD

    Below average customer ratings

THE BOTTOM LINE

AIG is a highly-rated company that offers affordable term life insurance, with customizable term lengths and riders, for applicants of all ages. Combined with competitive options for people with more common health conditions, AIG is a great first look for all life insurance shoppers.

AIG is on Policygenius' list of the best life insurance companies, based on cost, financial confidence, third-party customer ratings, life insurance policy options, and ease of application.

For our reviews, we rate carriers based on our recommended term life product. In the case of AIG, that’s the Select-a-Term policy.

Cost

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9.6

Confidence

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8.2

Third-Party Ratings

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6.9

Policy Details

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7.6

Ease of Application

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7.7

AIG COMPANY SPOTLIGHT

2 of 5

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J.D. Power Rating

A trusted customer satisfaction and product quality research agency

A-

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BBB Rating

A nonprofit organization focusing on marketplace trust and product quality

A

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A.M. Best

100-year-old U.S. credit rating agency focused on the insurance industry

The Details


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The Good

Competitive pricing for all ages. A number of factors such as age health determine life insurance rates. Plus, life insurance gets more expensive the older you are when you apply. But AIG term life insurance keeps costs below the industry average, even for healthy applicants in their 60s. If cost is one of your main concerns, definitely look into AIG.

Customizable term policies. AIG’s Select-a-Term provides more term lengths than your normal policy. Alongside affordable rates, low minimum death benefits, and a solid selection of riders to fit your needs, AIG provides a hefty amount of policy customization for shoppers.

Benefits common health conditions. People with some more common chronic health conditions, such as diabetes, ADD/ADHD, or asthma, are more likely to benefit from AIG’s rates than with other life insurance companies. People who use marijuana or CBD will also benefit from AIG’s term life protection.

Strong financial confidence. AIG has an “excellent” A rating from A.M. Best, an A2 from Moody’s, and an A+ from Standard & Poor’s. All this means, according to industry experts, AIG is in strong condition as a company and has the ability to pay out claims to policyholders.

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The Bad

Below average customer ratings. For a company that's been around as long as AIG has, with as many customers as it has, there are certain to be complaints. AIG doesn't fare as well in some consumer ratings, like those from Consumer Affairs, J.D. Power, or compared to competitors in the NAIC's national complaint index.

The Breakdown

Cost

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9.6

Cost is one of the most important factors when it comes to choosing a life insurance policy. If you're having a hard time deciding between policies, it's safer to go with the cheaper option — assuming it provides the proper amount of coverage.

That makes AIG a solid starting point for many shoppers. Across all age ranges, AIG tends to have cheaper-than-average policies. Of course, the cost of your policy depends on a number of factors, so compare to be sure.

To get a feel for much you could pay, here’s a sample rate based on a healthy male applying for $500,000 of coverage of AIG’s Select-a-Term term life policy:

AGEAIG AVERAGEINDUSTRY AVERAGE
20s$24.74$28.02
30s$27.97$32.06
40s$55.77$60.97
50s$141.60$152.00
60s$472.36$504.29

Sample rates are for a healthy male in California applying for $500,000 in Preferred-rate class coverage. Rates current as of November 2020, according to Policygenius data.

Besides age, health plays a large role in setting life insurance costs. Not every company weighs health conditions the same, so if you have high cholesterol, for instance, one company may be more competitive than another. When looking into life insurance companies, be sure to choose the ones that are more accommodating to your health circumstances.

With that in mind, AIG’s term life insurance is best for the following groups:

AIG’s Select-a-Term coverage also benefits people who use mairjuange and who use CBD, the active ingredient in marijuana found to alleviate stress and other ailments.

→ Want more information about life insurance and marijuana use? Then you should click here.

Confidence

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8.2

To cover debts and expenses like mortgage and college costs, a life insurance policy usually needs to last for 20 or 30 years. That’s quite a while. How do you choose a company that you can be sure will be around that long?

In AIG’s case, it’s been around for over 150 years and serves millions of customers. If that isn't enough to ease your concerns, it has garnered strong ratings from financial rating companies A.M. Best, Moody’s, and Standard & Poor’s. That proves AIG is in good standing and is most likely to stick around for some time.

  • Year founded: 1850
  • A.M. Best: A
  • Moody’s: A2
  • Standard & Poor’s: A+

Credit rating agency A.M. Best focuses mainly on the insurance industry. They give AIG an A rating, one of the best grades possible. It means AIG has a superior ability to fulfill customer obligations. Carriers with a B grade or lower are more vulnerable to risk.

Bond credit rating agency Moody’s gives AIG a score of A2. That means it’s a low credit risk and a great investment. Companies with an A rating and above are upper-medium grade and subject to low credit risk.

Credit analysis firm Standard & Poor’s awards AIG an A+, meaning their ability to meet financial obligations is considered really strong. Companies are rated on a scale from AAA to D. The higher the rating, the more likely a company is to pay its debts.

Third-Party Ratings

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6.9

It's important to know what experts think of life insurance companies. It's also good to know what actual customers and consumer sentiment sites are saying, too. That’s why we turn to third-party customer ratings sites to get a temperature check for how customers feel about their chosen insurer.

Unfortunately, AIG has a mixed customer reception. Though they falter in some areas, like J.D. Power's overall satisfaction score or the NAIC's complaint index, keep in mind their large customer base and the fact that a majority of customers are mostly satisfied.

  • Better Business Bureau: A-
  • Consumers Advocate: 4.9 / 5
  • Consumer Affairs: 2.7 / 5
  • J.D. Power: 2 / 5
  • NAIC complaint index: 3.39

The Better Business Bureau is a non-profit organization that ranks companies based on truth in advertising, commitment to resolving customer disputes, and other factors. While consumers can submit ratings to the BBB, these scores are not taken into account in their rating. They rate AIG an A-.

Consumers Advocate rates companies based on stability, reputation, and policy coverage. With a 4.9 out of 5 rating, they’re largely satisfied with AIG.

Consumer Affairs lets customers directly rate companies. With a 2.7 out of 5 rating, they’re a little less complacent about AIG. Complaints run the gamut from billing issues to rude customer service to long wait times.

J.D. Power rates insurance companies across a whole swath of criteria, including product offerings, price, clarity of statements and communication, and application process. In their latest 2020 study, AIG gets a score of 742 out of 1000, which roughly translates to a 2 out of 5, based on their Power Circle ratings. This is a below average rating. We don’t include J.D. Power as part of our scoring, but provided their rating here for a more complete picture of AIG’s standing.

The National Association of Insurance Commissioners (NAIC) tracks the number of complaints submitted to state insurance departments with their national complaint index. A score of 1 is the baseline average, and a score of zero means there weren't enough complaints to count. AIG's score of 3.39 means they received around three and a half times more complaints than the average. That may seem high, but remember their large customer base. This score represents fewer than 300 complaints, for a company with more than 5 million policyholders.

Policy Details

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7.6

AIG offers a number of products, including two term life policies, a guaranteed issue whole life policy, and several universal life policies.

Term life insurance

Term life insurance lasts for the duration of a term, or a set number of years. After that term’s up, it expires. Or you can renew the term. If you die during that time, your beneficiaries are paid a death benefit.

Most applicants should choose term life over whole or universal life policies because it’s the simplest and most affordable option. AIG provides that kind of simplicity along with a decent set of customizable options.

Select-a-Term

AIG’s main term life product, Select-a-Term, is a solid choice for applicants across the age spectrum.

What makes it unique is the variety of term lengths. You can choose 10 years, any duration from 15 to 30 years, or 35 years. That means you can choose 16-year terms, 27-year terms, or whatever amount you think you need.

That’s an extremely high degree of flexibility you won’t find with many term life insurance policies. There’s also a low starting minimum and a decent selection of riders to further customize your policy.

Policy FeatureSelect-a-Term
Eligible ages20 to 80
Term lengths10-, 15-, 20-, 25-, 30-, 35-year terms
Coverage minimum$100,000
Coverage maximum$1 million

Premiums are fixed for the initial level term. After the end of the level premium period, this policy is renewable on an annual basis, but premiums will increase until age 95. Policies expire at age 95.

Available riders

  • Accelerated death benefit. Allows you to accelerate up to 50 percent of the death benefit if you've been diagnosed with a terminal illness.

  • Accidental death rider. Pays an extra death benefit on top of the policy’s established death benefit. This rider ends on the policy anniversary nearest your 70th birthday.

  • Child protection rider. Provides life insurance coverage for all eligible children (ages 15 days to 19 years old) in one rider. Available coverage of $500 to $25,000.

  • Disability waiver of premium. If you become totally disabled as a result of a qualifying event, premiums are waived after a six month waiting period. This rider ends on the policy anniversary nearest your 65th birthday.

Temporary coverage
AIG can provide up to $1 million of temporary coverage, which starts when the application is signed.

Policy conversion
Select-a-Term customers can convert to any of AIG’s universal life policies until the end of the term or to age 70. You won’t need to take a medical exam.

Rate reconsideration
AIG lets you reconsider your rates after your policy’s activation. If you’re healthier you may qualify for lower rates. However, if you use tobacco you will have to wait a year until you’re eligible for reconsideration.

QoL Flex Term

This policy is similar to Select-a-Term. Details below.

AIG QoL Flex Term Details

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You get the same great variety of term lengths, along with built-in accelerated benefits, so you can use your death benefits early in case you’re diagnosed with a qualifying critical, chronic, or terminal condition. By having access to your benefits early you can pay off any medical costs or related expenses.

Policy FeatureSelect-a-Term
Eligible ages20 to 80
Term lengths10-, 15-, 20-, 25-, 30-, 35-year terms
Coverage minimum$100,000
Coverage maximum$1 million

Available riders

  • Accelerated death benefit. Included with the policy. Allows you to use a portion or the entire death benefit if you've been diagnosed with a chronic, critical, or terminal illness.

  • Accidental death rider. Pays an extra death benefit on top of the policy’s established death benefit in the case of accidental death.

  • Child protection rider. Provides life insurance coverage for all eligible children (ages 15 days to 19 years old) in one rider. Available coverage of $500 to $25,000.

  • Disability waiver of premium. If you become totally disabled as a result of a qualifying event, premiums are waived after a six month waiting period. This rider ends on the policy anniversary nearest your 65th birthday.

Policy conversion
Select-a-Term customers can convert to permanent life policies until the end of the term or to age 70. You won’t need to take a medical exam.

Permanent life insurance

AIG has several permanent policies on offer, including a guaranteed issue whole life product for retirees and a wide variety of universal life policies.

Guaranteed Issue Whole Life Details

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This is a type of final expense policy aimed towards people aged 50 to 80 years. Applicants in that age bracket are guaranteed acceptance. That means no medical exam, and no medical questionnaire to answer.

Face amounts range from $5,000 to $25,000, and are meant to cover funeral expenses, medical costs, and any other debts. Premiums are fixed, and accelerated riders are included.

This policy is not available in New York or Maine.

Available riders

  • Accelerated death benefit. Included with the policy. Allows you to use a portion or the entire death benefit if you've been diagnosed with a chronic, critical, or terminal illness.

Universal Life Details

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AIG has several universal, indexed universal, and variable universal life policies available. These are similar to whole life policies, except they have flexible death benefits and flexible premiums, which you can change whenever you want, depending on your financial situation.

They also act as investment tools that let you build up cash value. Some indexed universal life policies provide a death benefit in addition to cash value linked to the performance of a stock market index, like the S&P 500.

Anyone age 18 to 80 can apply for AIG’s universal life policies, which come with coverage amounts of $50,000 to $10 million.

If you’re interested in the details of AIG’s universal life policies keep in mind that we don’t recommend universal life policies because — unless you’re particularly wealthy and planning an estate — they’re too complicated and expensive for most people to consider. Go with a term life policy and a regular investment plan, like a savings account, instead.

→ Want to learn more about universal life policies? Check out our comprehensive explainers that detail the pros and cons of this type of coverage.

Ease of Application

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7.7

Depending on which product you choose, your application experience with AIG can differ.

Application process

Select-a-Term applicants will have to undergo full underwriting, which involves a medical questionnaire and possibly a medical exam. There are no no-med options from AIG, unless you’re applying for Guaranteed Issue Whole Life.

Turnaround time

Policy approval is fairly quick compared to other companies. You can expect a decision within two weeks.

Policy delivery

AIG policies are delivered electronically.

More Info

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State availability

AIG's Select-a-Term policy is available in all 50 states and Washington, D.C. The Guaranteed Issue Whole Life policy is not available in New York.

Change method

You can change a few things on AIG’s online portal, including:

  • Payment details
  • Contact details such as address, email, or phone number
  • Beneficiary info

You can also obtain other change forms online.

Payment methods

AIG lets customers pay multiple ways:

  • Via EFT
  • Recurring online payment via bank account or credit card
  • By phone
  • By check via mail

Digital tools

AIG has a calculator available on their website. There is an online quote tool but it requires a phone number and email address, which means you won’t get an actual quote until an agent calls you back. We recommend you use the online quote tool on the Policygenius site.

Claims documentation

You can initiate a claim online or by calling AIG. You will need:

  • Copy of death certificate
  • Obituary
  • AIG proof of death form

Frequently Asked Questions

Does AIG offer online quotes?

No, not really. You can enter your information, including your email address and phone number, into AIG’s site, but you won’t get a quote immediately. Instead, you’ll have to wait for an AIG agent to call back. Try using the Policygenius online quote tool for an instant, individualized quote.

Do I need to take a medical exam?

Most likely, yes. AIG doesn’t offer guaranteed issue, no-med term life products. Most people applying for Select-a-Term will have to undergo a medical exam and answer questions based on their medical and prescription histories. To skip the medical exam with AIG you’ll have to apply for the Guaranteed Issue Whole Life product.

What are the main health conditions that AIG covers?

AIG covers a decent range of health conditions, including ADD/ADHD, asthma, diabetes, psoriasis, scoliosis, intestinal bowel syndrome, OCD, and sleep apnea. People who use marijuana or CBD will also see better rates compared to other insurers.

Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.

Reviews Expert

Tim Torres

Reviews Expert

Tim Torres is the reviews editor at Policygenius. His work has appeared in Computer Shopper, Tom's Guide, and numerous other outlets over the last ten years.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.