Competitive pricing for all ages. AIG’s Select-a-Term 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. Select-a-Term provides more term lengths than your normal policy. Alongside affordable rates 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 common chronic health conditions (like 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 excellent marks across the board from credit analysis firms. That means AIG is in strong condition as a company and has the ability to pay out claims to policyholders.
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 or the NAIC's national complaint index.
Tedious website and quote tool. AIG’s website leaves a lot to be desired. It’s cluttered, and difficult to find information. The quote tool only gets you in touch with an agent after inputting all your information, too, which is irritating. Use the Policygenius online quote tool instead for an instant, individualized quote.
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.
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.
20 to 80
10-, 15-, 20-, 25-, 30-, 35-year terms
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.
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.
AIG can provide up to $1 million of temporary coverage, which starts when the application is signed.
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.
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.
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.
If you're having a hard time deciding between life insurance policies, it's safer to go with the less expensive option — assuming it provides the proper amount of coverage.
That makes AIG a solid starting point for many shoppers. Across all age ranges, AIG has cheaper-than-average policies. Of course, the cost of your policy depends on a number of factors, so be sure to compare.
Here’s a sample rate based on a healthy male applying for a 20-year term with $500,000 of coverage of AIG’s Select-a-Term term life policy:
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.
→ Get more information on life insurance and marijuana use.
AIG, which has been around for over 150 years and serves millions of customers, has garnered strong ratings from financial analysis companies A.M. Best, Moody’s, and Standard & Poor’s. This proves AIG is in good standing and is likely to stick around for a long time.
A.M. Best: A
Standard & Poor’s: A+
Credit rating agency A.M. Best focuses mainly on the insurance industry. They give AIG an A rating (effective December 2, 2021), one of the best grades possible. 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.
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.
It's good to know what actual customers are saying, which is why we turn to third-party sites to get a temperature check for how regular people feel about their chosen insurer.
Unfortunately, AIG has a mixed customer reception. But keep in mind, though they falter in some areas, like NAIC's complaint index, remember their large customer base and the fact that a majority of customers are mostly satisfied.
Consumers Advocate: 4.9 / 5
Consumer Affairs: 3.9 / 5
NAIC complaint index: 3.19
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. While a score of 3.9 out of 5 doesn’t look too bad (up from last year’s 2.7 out of 5), there are still complaints about billing issues, rude customer service, and long wait times.
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 3.19 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. Additionally, this score is a drop from last year’s 3.39.
Depending on which product you choose, your application experience with AIG can differ.
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.
Policy approval is fairly quick compared to other companies. You can expect a decision within two weeks.
AIG policies are delivered electronically.