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AIG Life Insurance Review

AIG can be a little slower than average to get from application to signed policy, but it makes up for this by having an electronic application and allowing you to perform several other actions online

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Overview

AIG, an A rated company founded in 1919, offers a unique term life insurance product that allows you to choose non­standard term lengths. For example, you can choose a term of 18 or 19 years instead of the standard 20. You can also customize your policy with a wide range of riders.

Our take

AIG can be a little slower than average to get from application to signed policy, but it makes up for this by having an electronic application and allowing you to perform several other actions online, such as updating your beneficiaries or changing your address. AIG also has customizable term lengths, which means you can get a term of 18 or 22 years. Most carriers limit terms to round numbers of 15, 20, and 30.

Financial Strength

Founded

1850

PolicyholderstooltipThis is how many active US life insurance customers this company insures.

5,200,000

AM BesttooltipA.M. Best is an independent rating agency that evaluates the financial strength of insurance companies. Ratings as of May 2016, on a scale from A++ to D.

A

BBB RatingtooltipBetter Business Bureau (BBB) is a non-profit that collects consumer feedback on businesses around the country.

A+

JD PowertooltipJ.D. Power and Associates is a global marketing information services firm that conducts surveys of customer satisfaction, product quality, and buyer behavior.

2 of 5

Accolades

In January, 2015, AIG won four awards at Global Finance's 2015 World's Best Global Insurers awards. Speaking about the awards, Joseph D. Giarraputo, editorial director of Global FInance, said that AIG and the other organizations honored have "done the best job of meeting the widely varied needs of their clients around the world."

Finding the best rates

Each insurer approaches health conditions differently. One insurer might ignore a heart attack from a few years ago, whereas a different insurer might rate you as a higher risk for the same thing. Here are the details of how AIG treats a variety of common health conditions from an underwriting perspective.

Pricing for health conditions
Health ConditionPricing
Survivor/Family HistoryFair
Recent Weight LossExcellent
Heart AttackGood
DiabetesExcellent
Sleep ApneaGood
Former Tobacco UseGood
High Blood PressureGood
High CholesterolFair

Excellent - Above average; company provides excellent coverage for clients with this condition.

Good - Spot on; company doesn’t look at this condition unfavorably in underwriting.

Fair - Could use some work; clients with this condition may be issued a lower health rating, and subsequently higher rates than other insurers.

Compare AIG to other top carriers

Find head-to-head comparisons of AIG and other top-rated life insurance companies to help you make the right decision.

AIG plan details

Unique features

  • Very competitive underwriting for a range of health conditions
  • Customizable terms between 15-35 years (meaning you can choose a term of 18 years, for example. Most carriers limit terms to round numbers of 15, 20 and 30)
  • No medical exam for ages 20-59 and face amounts between $50,000 - $99,999
  • Low minimum face amount requirement ($50K)
  • Selection of riders available to personalize your coverage

When applying

How's the application process?

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Pros

  • Electronic application
  • Average number of application forms
  • Policy delivery by email

Cons

  • Slower than average application approval (39 days)

After you're a policyholder

How's the customer service?

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What you can do online

  • Updating beneficiaries
  • Changing address
  • Changing payment info

What you can't do online

  • Policy cancellation requires a phone call

Sample quotes

Quote for:

$500,000, 20-year term life insurance policy for healthy, nonsmoking individuals, in California, monthly premiums

CompanyPlanMale - Age 30Male - Age 40Male - Age 50Female - Age 30Female - Age 40Female - Age 50
AIGSelect-a-Term$21.11$30.62$79.93$18.08$28.46$59.60
AIGROP Select-a-Term$91.21$150.77$281.97$75.80$124.95$261.56
Banner LifeOPTerm$21.44$32.38$94.07$18.19$26.60$58.62
John HancockTerm$26.95$34.65$81.70$24.20$34.00$78.99
Lincoln FinancialLifeElements$28.44$38.94$78.75$23.63$30.63$58.63
Lincoln FinancialTermAccel$21.00$29.75$78.75$17.94$25.81$57.31
Mutual of OmahaTerm Life Answers$21.66$33.47$85.53$23.41$28.66$64.09
Pacific LifePacific PROMISE Term$20.84$29.59$77.09$19.18$26.68$61.67
PrincipalTerm$22.75$31.94$79.63$20.04$27.56$59.24
ProtectiveCustom Choice UL$20.37$28.91$76.82$17.93$25.25$55.75
ProtectiveClassic Choice Term$20.21$28.38$75.68$17.63$25.94$55.47
PrudentialTerm Essential$34.20$43.65$88.65$27.90$38.70$76.95
PrudentialReturn of Premium Term$101.00$143.62$291.99$88.12$130.04$253.37
SBLILevel Premium Term$21.32$40.05$96.06$24.48$34.71$65.87
TransamericaTrendsetter Super$22.36$37.85$79.12$18.06$30.96$62.78
TransamericaTrendsetter LB$24.95$38.27$92.89$20.65$34.84$73.11

Details

Annual Payment Discount

4%

Payment methods available

Check; Auto bank draft; Credit card only for first payment (and not available in all states)

Is coverage available without a medical exam?

Yes, up to $99,999

What is the rule for converting the policy?

The policy is convertible until the earlier of the end of the term or to age 70

Is temporary coverage available?

Yes, up to $1,000,000.

Available Riders

Riders are additions to your overall life insurance policy that turn a basic life insurance policy into something that covers more circumstances.

  • checkmarkChild Protection Ridertooltipyou can get life insurance for all children (ages 15 days - 19 years old) in one rider. Available coverage of $500 - $25,000.

    Provides life insurance coverage for all eligible children.

  • checkmarkDisability Income Ridertooltippremiums are waived if you become totally disabled (after a 6 month waiting period). Rider ends on the policy anniversary nearest your 65th birthday.

    If you become totally disabled as a result of a qualifying event, you will not have to pay premiums for a fixed period of time.

  • checkmarkAccelerated Death Benefit Ridertooltipyou can accelerate up to 50% of the death benefit (up to a max of $250,000) if you've been diagnosed with a terminal illness, with a max life expectancy of 12 months.

    Allows you to receive a portion of the death benefit if you are diagnosed with a qualifying terminal illness.

  • checkmarkAccidental Death Benefit Ridertooltippays an additional death benefit on top of the base policy's death benefit if the death resulted from certain accidental injuries.

    Pays an additional death benefit on top of the base policy's death benefit if the death resulted from qualifying accidental injuries.

Common features

This policy, like all term life policies offered on our site, provides life coverage for a specific period of time (the term). The key features of this policy are standard across all the term policies we offer:

  • Level premium - which means the cost of the policy (the premium you pay) is fixed for the entire term of the policy. It will not increase during the term of the policy.
  • Good value - term life policies are significantly less expensive for the same amount of death benefit coverage than permanent life policies.
  • Regulated - the cost of this term life policy, for a given coverage amount and term, will always be the same for you regardless of who you buy it from. That’s because the policy will be priced based on the underwriting table the insurer files with the state insurance regulator.
  • No-risk obligation for you - you, as the policyholder, can cancel your policy at any time if you decide you don’t want it anymore. The insurer, however, cannot cancel your policy as long as you pay the premiums on time.
  • No exclusions - except for suicide during the first two years of the policy (which is standard by law across life insurance policies).
  • Terminal illness benefit - you can access a portion of the policy’s death benefit while you’re still alive if you’ve been diagnosed with a terminal illness. You might see this referred to as an "accelerated death benefit."
  • Convertible - which means, if you choose to, you can convert the term life policy to a permanent life policy. The conversion will generally cost you more and is subject to certain conditions.

The review on this page is only for this company's term life insurance products.

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50 West 23rd Street, Floor 9

New York, NY 10010

24/7 - Available when you need us

Monday-Thursday | 9am-11pm ET
Friday | 9am-8pm ET
Saturday | 9am-9pm ET
Sunday | 10am-9pm ET

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