AIG life insurance review: Great term life rates

AIG has competitive rates for term life insurance for all ages, plus competitive underwriting for many health conditions.

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Headshot of Alani Asis

By

Logan SachonLogan SachonSenior Managing Editor, Life Insurance & ResearchLogan Sachon is the senior managing editor of life insurance and research at Policygenius, where she edits life insurance content and leads life insurance surveys and data studies. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.&Alani AsisAlani AsisContributing WriterAlani Asis is a contributing writer at Policygenius, focusing on insurance company reviews. She is a former Personal Finance Reviews Fellow at Business Insider, and her work has also appeared in LendingTree and Sound Dollar.

Edited by

Adam MorganAdam MorganEditorial DirectorAdam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others.

Updated|2 min read

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AIG

AIG logo

Policygenius rating

Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
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4.6

AM Best rating

A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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Policygenius awards

  • Best life insurance for families 2023

The bottom line

AIG is an excellent choice for anyone looking for affordable rates for term life insurance. It’s an especially good option for people with heart conditions, people who are pregnant, and people with diabetes.

Pros

  • Competitive pricing for all ages

  • Favorable underwriting for people with heart conditions and diabetes

  • Good for current and recently pregnant people, including people with gestational diabetes

Cons

  • Not the best for people with mental health conditions, including anxiety and depression

  • No no-medical-exam term option

Basic coverages offered

  • Term life insurance: Select-a-Term is AIG’s term life insurance policy. Terms are available for 10 years, 35 years, and custom lengths between 15 and 30 years. Minimum coverage is $100,000.

  • Whole life insurance: AIG offers whole life insurance, which is permanent life insurance with a cash value. (Note: This product is not currently available through the Policygenius marketplace.) 

  • Universal life insurance: AIG offers guaranteed universal life insurance, which is an affordable permanent policy type.

  • Guaranteed issue whole life insurance: AIG’s guaranteed issue life policy is available to people age 50 to 80 in coverage amounts from $5,000 to $25,000.

Additional coverages offered

  • Terminal illness rider: This common rider, also called an accelerated death benefit rider, is included at no extra cost and provides part of the death benefit if you’re diagnosed with a qualifying terminal illness. 

  • Child rider: For an additional cost, the child rider provides life insurance coverage to the insured’s children, up to $25,000 per child.  

  • Waiver of premium rider: For an additional cost, the waiver of premium rider allows the insured to forgo paying premiums for a period of qualifying disability. 

  • Accidental death benefit: For an additional cost, pays out an additional death benefit in case of death by accidental injuries. 

Ratings methodology

Price

5.0/5

Our price rating scale looks at life insurance rates for a sample 20-year term policy with a $1 million coverage for a 35-year-old female non-smoker with a Standard Plus (or Standard if no Standard Plus is available) risk classification, the rating an insurance company gives you that determines your rates. The quote we got from AIG put it in the least expensive category for our rating system.

Customer experience

4.9/5

AIG scored well on our customer experience scale. According to data from the National Association of Insurance Commissioners' (NAIC) complaint index, AIG has a lower complaint level (by more than 50%) across its products than the industry average (0.45 for AIG versus the average of 1.0). 

Transparency

4.1/5

Our transparency rating scale measures how much information is on an insurer's website, and how easily you can find it. The AIG website only presents two ways to contact the company — email and phone — while many competitors offer an online support center or a live chatbot. Also, while the company makes term lengths and coverage amounts available, it doesn't disclose average premium rates on its website. It does, however, share its financial ratings from A.M. Best, Standard & Poor's, Moody's, and Fitch.

Financial strength

3.6/5

Our financial strength rating uses three industry-leading credit scoring systems (A.M. Best, Standard & Poor’s, and Moody’s). AIG’s life insurance business scores well on all three scales, with an A, A+, and A2, respectively.

A closer look at AIG life insurance

Who is AIG best for?

AIG provides competitive rates for policyholders of all ages, while young shoppers especially may find their most affordable prices with AIG.

For people with pre-existing conditions including heart conditions, AIG is often a great choice. Also, if you're a smoker in the market for life insurance, it may be easier to get coverage with AIG compared to its competitors. 

What makes AIG unique?

AIG’s variety of term options and extremely affordable rates make it a standout for term life insurance. Its underwriting consideration of pregnant people throughout their pregnancies also makes it unique, since many insurers will postpone your application if you’re past the first trimester.

Who should consider a different life insurance company?

People with mental health conditions may have a hard time finding their best rates with AIG. Also, anyone looking for no-medical-exam term coverage will need to look elsewhere as well (you can start with our list of the best no-medical-exam term policies).

Expert opinions on AIG

"AIG is one of our top picks for guaranteed universal life for its relatively affordable rates. For term, it has great rates across age groups, and for people who are currently pregnant or have a history of heart conditions, it’s a solid option." — Eloise Spinello, licensed life insurance specialist at Policygenius

AIG life insurance rates

The chart below shows average monthly premium prices for a 20-year term life insurance policy with $500,000 in coverage for non-smokers in a Preferred health classification; quotes are based on the Policygenius Life Insurance Price Index methodology.

Age/sex

AIG average

Industry average

25-year-old female

$18.70

$21.08

25-year-old male

$23.81

$26.90

35-year-old female

$22.26

$25.58

35-year-old male

$26.01

$30.34

45-year-old female

$43.13 

$47.86

45-year-old male

$55.00

$60.76

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AIG history, reputation, and social responsibility

AIG is the American International Group, which was founded in 1919 by an American businessman in Shanghai named Cornelius Vander Starr. By 1926, the first U.S. office opened in New York City, and by 1939 the company headquarters had moved to New York, where it remains today. [1]

Today the company sells a range of insurance and retirement products in over 70 countries. The current CEO of AIG is Peter Zaffino, who is also the Chairman of the Board of Directors. AIG has 36,00 employees worldwide. [2]  

AIG frequently states it is committed to corporate and social responsibility by leveraging its environmental, social, and governance (ESG) framework. In 2021, it released its second ESG report. Its goals include reaching net zero greenhouse gas emissions across its underwriting and investment portfolios by 2050, and making efforts to insure renewable energy and lower-carbon industries. It also reports that women represent 55% of its global workforce. AIG contributed $27 million to nonprofit organizations through direct donations and matching grants. [3]

AIG in the news

  • In November 2022, AIG announced that CEO and chairman of the board Peter Zaffino would stay in his role until at least November 2027. (Reinsurance News)

  • In June 2022, AIG was named one of "The Civic 50" by Points of Light, a nonpartisan, global nonprofit. The award honors corporate citizenship and social impact. (Points of Light)

  • In March 2022, AIG announced it would rebrand its Life & Retirement Business as Corebridge Financial, Inc. and spin it off as a standalone company. (Insurance Business America)

AIG vs. other life insurance companies

Compare AIG to similar life insurance companies using the table below.

Company

Policygenius rating

AM Best rating

Cost

AIG

4.6/5

A

$

Lincoln Financial

4.8/5

A

$

Symetra

4.3/5

A

$$

Protective

4.8/5

A+

$

Pacific Life

4.8/5

A+

$

MassMutual

4.9/5

A++

$$$

Banner Life

5.0/5

A+

$

Transamerica

4.6/5

A

$

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Frequently asked questions

Is AIG a good company?

Yes, AIG is a reputable insurance company with high financial and customer service ratings. A.M Best gives AIG an A rating, meaning you can rely on the company to meet its financial obligations, like paying out claims.

What is AIG?

AIG is the American International Group, an insurance company which sells a range of insurance and retirement products. Originally founded in Shanghai, its corporate headquarters are now in New York City.

Who owns AIG?

AIG is a publicly traded company on the New York Stock exchange, trading under AIG, and "owned" by its shareholders.

How do I contact AIG?

To contact AIG, including the claims support team, call 800-225-5244 or visit the AIG website.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. AIG

    . "

    Discover the history of AIG

    ." Accessed December 19, 2022.

  2. Fortune

    . "

    AIG

    ." Accessed December 19, 2022.

  3. AIG

    . "

    AIG 2021 ESG Report: Executive Summary

    ." Accessed December 19, 2022.

Authors

Logan Sachon is the senior managing editor of life insurance and research at Policygenius, where she edits life insurance content and leads life insurance surveys and data studies. As a journalist, her work has appeared in The Guardian, Business Insider, CNN Money, BuzzFeed, Money Under 30, VICE, New York Magazine, and elsewhere.

Alani Asis is a contributing writer at Policygenius, focusing on insurance company reviews. She is a former Personal Finance Reviews Fellow at Business Insider, and her work has also appeared in LendingTree and Sound Dollar.

Editor

Adam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others.

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