AIG Life Insurance Review

AIG is faster-than-average to get from application to signed policy, and an electronic application allows 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.

Financial Strength

  • Founded: 1850
  • Policyholders: 5,200,000
  • A.M. Best: A
  • BBB Rating: A+
  • J.D. Power: 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 Company Details

AIG is faster-than-average to get from application to signed policy, and their electronic application and other online actions, such as updating your beneficiaries or changing your address, make them a convenient provider. 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.

How's the application process?

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Pros

  • Electronic application
  • Policy delivery by email
  • Faster than average application approval

Cons

  • Average number of application forms

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

AIG Term Life Plan Details

Common features

All term life policies offered on our site provide 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.

Cost comparison

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

Select-a-Term

Unique features

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  • 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

Details

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  • 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

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

  • 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.
  • Disability Waiver of Premium Rider - 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.
  • Accelerated Death Benefit Rider - Allows you to 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.
  • Accidental Death Benefit Rider - Pays an additional death benefit on top of the base policy’s death benefit if the death resulted from qualifying accidental injuries.

ROP Select-a-Term

Unique features

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  • Refund of premiums - If the insured outlives the policy's term, then the premiums paid will be refunded. Think of it as "money-back" term life insurance.
  • 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

Details

View
  • Annual Payment Discount - None
  • 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

View

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

  • 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 Rider - Allows you to 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.
  • Accidental Death Benefit Rider - Pays an additional death benefit on top of the base policy's death benefit if the death resulted from qualifying accidental injuries.

AIG Whole Life Plan Details

Final expense whole life policies provide coverage for the duration of your life. Key features include:

  • Fixed premiums - once you’ve been approved, the cost of the policy (the premium you pay) can never change.
  • No medical exam required - you will not be asked to undergo a medical exam or to visit any laboratory for tests for underwriting.
  • No expiration date - whole life policies don’t expire. Your policy will last as long as you continue to pay the premiums on time.
  • Best price guarantee - the cost of this policy, for a given coverage amount and customer, will always be the same regardless of who you buy it from. Prices are government-regulated, and based on underwriting tables the insurer files with state agencies.
  • Cancel at any time - you can cancel at any time if you decide you don’t want the policy anymore. The insurer, however, can never cancel your policy as long as you pay the premiums on time.

Cost comparison

Quote for: $20,000, whole life insurance policy for healthy, nonsmoking individuals, in California, monthly premiums.

COMPANYPLANMALE - AGE 50MALE - AGE 60MALE - AGE 70FEMALE - AGE 50FEMALE - AGE 60FEMALE - AGE 70
AIGGuaranteed Issue$101.85$124.33$184.28$69.66$88.27$138.83
Mutual of OmahaLiving Promise$55.11$82.31$144.20$46.14$62.53$103.28
TransamericaFinal Expense$59.42$85.58$147.27$48.60$65.40$105.94

Guaranteed Issue

Unique features

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  • Near instant issuance
  • Guaranteed eligibility, with no medical underwriting questions required
  • Terminal Illness Acceleration Benefit rider included at no additional cost
  • Chronic Illness Acceleration Benefit rider included at no additional cost

Details

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  • Annual Payment Discount - None
  • Payment methods available - Auto bank draft; Credit card
  • Is coverage available without a medical exam? - Yes, up to 25,000
  • What is the rule for converting the policy? - N/A
  • Is temporary coverage available? - N/A