8.0 / 10

AIG Life Insurance Review

With competitive pricing and a range of policy options, AIG is a good potential option for many life insurance shoppers.

Colin Lalley 1600

Colin Lalley

Published November 14, 2019

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Methodology
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AIG

OVERALL

8.0

THE GOOD

    Competitive rates for applicants of all ages

    Range of policy options

    Shorter-than-average application length

THE BAD

    Average turnaround time to activate policy

    Average customer ratings

THE BOTTOM LINE

AIG is a highly-rated company that offers affordable term life insurance for applicants of all ages. Combined with competitive options for people with complicated health histories, AIG is a great first look for all life insurance shoppers.

AIG is number 3 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.

Cost

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7.3

Confidence

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8.0

Customer Ratings

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6.0

Policy Options

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9.0

Customer Experience

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8.0

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

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The Bottom Line

Price is one of the biggest deciding factors in choosing a life insurance policy, and AIG has some of the most competitive costs in the industry. Combined with robust term life insurance options, it's a good starting point for many shoppers. Though it falls short in some customer complaint categories, shoppers should take these with a grain of salt considering the company's large customer base of over 5 million policyholders.

The Details


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The Good

Competitive rates for applicants of all ages. Life insurance rates are determined by a number of factors - notably the policy itself (term length and coverage amount) and health of the applicant (including age and health history). While life insurance gets more expensive the older you are when you apply, AIG term life insurance retains a below-average cost even for health applicants in their 60s.

Range of policy options. Life insurance isn't a one-size-fits-all financial product. It's important to be able to tailor a policy's term length, coverage amount, and features to fit your needs. While some AIG policies may not have the customizable riders available elsewhere, they come in a variety of term lengths and start at affordable, low coverage death benefits.

Shorter-than-average application length. Using an independent broker like Policygenius will help you avoid many of the typical life insurance application headaches, but it's still nice to know that the standard application form for AIG is shorter than average so you'll be able to read through it and understand it quickly.

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The Bad

Average turnaround time to activate policy. The time for a life insurance policy to become active depends on a number of factors. The carrier may request documents from your doctor, or there may simply be a higher volume of applications to a carrier. On average, the turnaround time for an AIG policy to become active is slightly slower than average - but that may not be the case for your application.

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 J.D. Power, or compared to competitors in the NAIC's national complaint index.

The Breakdown

Cost

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7.3

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 safe to go with the cheaper option (assuming it provides the proper amount of coverage, of course).

That makes AIG a good starting point for many shoppers. Age is one of the biggest determinants of life insurance cost, and 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 be sure to compare just to be sure.

AgeAIG averageIndustry average
20s$25.34$28.02
30s$28.42$32.06
40s$56.90$60.97
50s$147.45$152.00
60s$486.96$504.29

Sample quotes for a healthy male applying for a $500,000, 20-year policy. Rates current as of September 2019.

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.

Here's how AIG typically ranks for common 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.
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Compare AIG to other top-rated companies

AIG is a good company -- but it may not be the right fit for you. Compare top insurers in one place and find your best rate with Policygenius.

Confidence

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8.0

A life insurance policy often lasts for 20 or 30 years in order to cover debts and expenses like mortgage and college costs. With that in mind, how do you choose a company that you can be sure will be around that long?

  • Number of policyholders: 5,200,000
  • Year founded: 1850
  • Standard & Poor’s: A+
  • Moody's: A2
  • A.M. Best: A

AIG serves millions of customers and has been around for over 150 years. If that isn't enough to ease your concerns, though, strong ratings from financial rating companies S&P, Moody's, and A.M. Best prove that AIG is in good standing and likely to be sticking around.

Highest ratings from each firm are:

  • Standard & Poor’s: AAA
  • Moody’s: Aaa
  • A.M. Best: A++

Customer Ratings

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6.0

It's important to know what experts think about life insurance companies - but it's also good to know what actual customers and consumer sentiment sites are saying, too.

AIG has above average customer ratings across the board. While 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 vast majority of customers are largely satisfied.

  • J.D. Power: 2 / 5
  • BBB: A-
  • Consumer Affairs: 3.4 / 5
  • Consumers Advocate: 4.9 / 5
  • NAIC complaint index: 3.58

J.D. Power provides studies that rate insurance companies across product offerings, price, clarity of statements, interaction, communication, and the application process. An overall satisfaction score, "based on how individual life insurance clients rate their overall experience with the provider", is reflected here and used for our ranking.

The Better Business Bureau ranks companies across a large swath of criteria. While consumers can submit ratings to the BBB, these scores are not taken into account in their rating, although tangential metrics that take into account customer experience are.

Consumer Affairs is a platform that lets consumers directly rate customers, while Consumers Advocate rates companies based on stability, reputation, and policy coverage.

The National Association of Insurance Commissioners tracks the number of complaints submitted to state insurance departments with their national complain index. A score of 1 is the baseline average, and a score of 0 means there weren't enough complaints to count. AIG's 2018 score of 3.58 means they received around three and a half times more complaints than the average. That may seem high, but keep in mind their large customer base. This score represents fewer than 300 complaints, for a company with more than 5 million policyholders.

Policy Options

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9.0

Term life insurance

Term life insurance expires after a set number of years. Some applicants may be able to forgo the medical exam depending on their policy, age, and health.

Select-a-Term

AIG's Select-a-Term term life insurance policy is a straightforward life insurance policy that's good for applicants across the age spectrum.

Key details
Annual payment discount4%
Available payment methodsCheck; Auto bank draft; Credit card only for first payment (and not available in all states)
Temporary coverageUp to $1,000,000

Policy conversion
The term policy is convertible to a whole life policy until the earlier of the end of the term or to age 70.

Available riders

  • Child protection rider - Provides life insurance coverage for all eligible children (ages 15 days - 19 years old) in one rider. Available coverage of $500 - $25,000.
  • Accelerated death benefit - Allows you to accelerate up to 75% of the death benefit (up to a max of $500,000) if you've been diagnosed with a terminal illness.
  • Disability waiver of premium - If you become totally disabled as a result of a qualifying event, premiums are waived (after a 6 month waiting period). Rider ends on the policy anniversary nearest your 65th birthday.

Whole life insurance

Whole life insurance is a type of life insurance that stays active for as long as you pay the premiums, but is around eight times more expensive than term life. Shoppers should look to term life insurance first before considering whole life.

Guaranteed issue

AIG's whole life insurance option is guaranteed issue, meaning there is no medical exam, but coverage limits are low and the policy is very expensive. This type of policy is best for older or unhealthy applicants who may not have other coverage options.

Key details
Annual payment discountN/A
Available payment methodsAuto bank draft; Credit card
Temporary coverageN/A

Note: The information above represents potential policy options and may not be available for every applicant. Speak to a licensed expert for a personalized look at your coverage options.

Customer Experience

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8.0

AIG provides a strong customer experience, including wide availability and access to make policy changes online,

Application process

State availability

AIG's Select-a-Term policy is available in all 50 states, as well as Washington, D.C. Guaranteed issue policies are not available through the company in New York.

Application length

The application length for AIG is below average.

* Based on standard application. Additional forms may be required.

Turnaround time

AIG has an average turnaround time from application to active policy.

Change method

Need to make changes to your policy? AIG allows you to make most changes online.

  • Online: Changing address, changing payment information, changing beneficiary
  • Phone: Canceling policies
  • Mail: N/A

Payment methods

AIG accepts premium payment by bank auto draft and credit card (for first payment). Payment by check is available for term life insurance policies.

Policy delivery

Final policy delivery is available electronically for instant access.

Claims documentation

AIG requires the following forms to be submitted to claim a death benefit:

  • Claimants statement
  • Certified death certificate
  • Obituary or newspaper articles, if available
  • Original contract, if available
  • HIPAA authorization

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.