AIG Life Insurance: American General Life Insurance Company Pros And Cons

Shawn Plummer

CEO, The Annuity Expert

Compare AIG With Other Life Insurance Companies

Note: We are an independent licensed insurance agency representing AIG Life Insurance (among 25 other life insurance companies) and provide a non-biased review of the products.

Pros and Cons

  • Term life insurance comes in 18 different lengths, going as long as 35 years.
  • AIG has low rates for term life insurance policies for people of all ages.
  • Most American General permanent policies have good features, like low internal costs and good reliability of policy illustrations. However, they also perform well regarding investments that help the cash value grow.
  • AIG offers relatively friendly underwriting for marijuana users.
  • A medical exam is required.
  • The company’s overall financial track record is poor but has recovered since AIG’s financial implosion in 2008.
  • AGL received a high number of complaints from customers to regulators.
  • American International Group scored below the industry average for customer satisfaction in J.D. Power’s 2021 U.S. Life Insurance Study.
  • Does not offer Long-Term Care Insurance.
  • Complaints of long hold times on phone calls
American General Life Insurance

AIG Life Insurance Policy Cost

American General policies typically are less expensive than other life insurance companies policies. Below are sample monthly premium rates compared with their competition.


30$500,00020-Year Term$19.82$19.58
40$500,00020-Year Term$31.95$31.96
50$500,00020-Year Term$56.33$77.74

The Competition

30$500,00020-Year Term$16.57$19.74
40$500,00020-Year Term$26.70$31.79
50$500,00020-Year Term$70.13$73.53

Below are sample rates with other life insurance companies to give you a better idea.

  • State Farm: A 20-year term policy for $1,000,000 costs $62.19 monthly for a 35-year-old. AIG charges $39.61.
  • Colonial Penn: A whole life policy for $50,000 costs $62.08 monthly for a 40-year-old. Nationwide charges $67.99.
  • AAA: A 10-year term policy for $200,000 costs $13.20 monthly for a 35-year-old. AIG charges $13.16.
  • Allstate: A 20-year term policy for $250,000 costs $24.64 monthly for a 37-year-old. AIG charges $16.56.

AIG Life Insurance Products

American General (AIG) Term Life Insurance

Term life insurance is a type of life insurance that covers you for a specific period. For example, if you want life insurance protection until you retire, you can buy a term life policy that will last until then. Term life coverage has no savings component, so it is usually the cheapest type of life insurance.

AIG offers a term life product with different term duration options. For example, you can buy a term for ten or 35 years. The product is available to buyers between the ages of 18 and 80. If you choose to renew your policy at the end of your Term, you can do so until you reach age 95. Your death benefit coverage will start at $100,000.

Use our free term life insurance calculator to easily compare term quotes.

American General (AIG) Guaranteed Issue Whole Life Insurance

Whole-life policies can be a good option for people looking for permanent life insurance. This type of permanent coverage comes with guarantees, like a guaranteed death benefit and a guaranteed rate of return on your cash. However, there are different types of whole life insurance policies, like guaranteed issue whole life insurance, which sometimes doesn’t have a savings component.

American General Guaranteed Issue Whole Life product, or final expense protection, offers guaranteed acceptance between ages 50 to 80. You will not be refused coverage even with health or medical issues. The policy covers between $5,000 and $25,000.

If you die within two years of buying the AIG life insurance policy, your beneficiaries will get 110% of the premiums you paid. After two years, they will get the full death benefit. This kind of payout is called a graded death benefit. The premiums for AIG’s whole life product are guaranteed not to increase.

American General (AIG) Guaranteed Universal Life Insurance

Guaranteed universal life policies offer the potential for flexible premiums and death benefit amounts up to a specific limit. AIG life insurance is usually cheaper than other universal life policies because there may be minimal gains.

The Secure Lifetime GUL 3 policy has a flexible premium. You can choose to pay it in different ways, and you can choose when to make the payments. The minimum death benefit is $100,000. However, this policy offers an adjustable death benefit, meaning the amount paid upon your death can change. This AIG life insurance policy is available to buyers aged 18 to 80.

AIG’s Secure Lifetime GUL 3 policy comes with different guarantees, including:

  • A guaranteed death benefit that is usually tax-free
  • Guaranteed premiums
  • A flexible continuation guarantee benefit allows you to determine how long your death benefit is guaranteed.
  • The guaranteed minimum interest rate for accumulation is 2%

American General (AIG) Indexed Universal Life Insurance

Indexed universal life policies are permanent life that grows or declines in value, depending on the index it is linked to. AIG life insurance also offers flexibility to change the premiums and death benefits you pay. However, there are often caps on how much you can participate in the policy and fees.

The American General Max Accumulator+ is available for people between 18 and 80. It has a minimum death benefit of $50,000. You can choose between two different death benefits: level or increase.

For cash accumulation, you will select your investments from four accounts with performance based on the S&P 500. You can change your allocations at any time. The declared interest account has a fixed minimum interest rate of 2%.

The AGI Value+ Protector is another AGI-indexed universal product. It comes with different guarantees and has higher coverage amounts for buyers between 18 and 85. The minimum death benefit amount is $100,000.

You can choose to invest in options based on how much risk you are willing to take. The ” par ” and “cap” strategies are the two strategies. They are both based on the S&P 500. In addition, you can invest in a fixed-interest account if you want a guaranteed minimum interest rate.

AIG Life Insurance Riders

Different types of life insurance riders offer different levels of coverage or features. Therefore, the availability of these riders may vary depending on your policy type. Here is a list of the riders offered by AIG.

  • Accidental Death Benefit Rider. The American General Accidental Death Benefit rider is an option for people who want more coverage than the base limit for accidental death.
  • Child Life Insurance Rider: American General offers a child life insurance rider with a death benefit for your children until they turn 19.
  • Disability Rider: If you are disabled and can’t pay your premiums, American General’s Enhanced Disability Benefit rider will help you avoid losing your coverage.
  • Early/Enhanced Cash Value Rider: This rider offers a higher surrender value if you need to cancel your policy within the first few years.
  • Lapse Protection Rider: If you miss a premium payment and have insufficient cash to cover it, the Lapse Protection rider will help you avoid lapses. This only applies if you have a policy that includes this protection.
  • Maturity Extension Rider: This rider will let you keep your insurance coverage after ending the policy. However, you will not have to make any more monthly payments, and no new premiums will be charged.
  • Overloan Protection Rider: This rider helps prevent your policy from lapsing if you borrow money from your cash value and there isn’t enough left to cover policy fees.
  • Return of Premium Rider: If you outlive your term life insurance policy, AGI’s Return of Premium rider will refund your premiums. The refund will happen after the initial term length is over.
  • Spouse/Other Insured Rider: This rider covers your spouse or children. If you name your spouse or children in the rider, they will receive a death benefit if they die.
  • Terminal Illness Accelerated Death Benefit Rider: If you are terminally ill with only 24 months or less to live, American General’s Accelerated Death Benefit rider will allow you to access your death benefit early.
  • Waiver of Monthly Deductions:  This rider will pay your monthly charges if you are disabled for at least six months.
  • Waiver of Premium Rider. If you have a term life policy and can no longer work due to a disability, American General’s Waiver of Premium rider will help you keep your insurance. You will not have to pay premiums for some time. The rider is not available if the face value of your policy is more than $5 million per insured life.
What Happened To American General Life Insurance Company

AIG Life Insurance Customer Service

Contact AIG customer service: (800) 888-2452

PO Box 818006

Cleveland, OH 44181 

Fax: 844-930-0370



About American General

American General is part of the American International Group (AIG). They offer term life insurance, guaranteed issue whole life insurance, universal life, variable universal life, and accidental death and dismemberment insurance.

Other insurance products include accident, health, travel, and annuities.

AIG, a large insurance company, experienced a major collapse in 2008. This was due to a lot of debt and risky investments. As a result, they received an 85 billion dollar loan from the Federal Reserve to bail them out of their financial obligations. This is something to consider since AIG life insurance policies are backed by the insurance company’s claims-paying ability per the National Association of Insurance Commissioners (NAIC).

Before Buying AIG Life Insurance

Before comparing companies, decide the type of policy you want. Calculate how much coverage you’ll require and how long your coverage should last. Ensure that the insurers you’re looking at offer the coverage you need. When comparing competitive rates, ensure you get quotes for the same amount of coverage. Also, double-check that the policy’s medical criteria are appropriate for you.

One must first compare quotes from multiple companies to purchase life insurance plans. The research is just like when you are shopping for car insurance. You want to find the policy with the cheapest rates. That’s because the insurance is mainly for death benefit planning. Make sure to purchase life insurance from an issuing insurance company with an A.M. Best rating of “A-” or better.

You can get a significantly cheaper rate for life insurance for final expenses or whatever else if you shop around. In addition, you can almost certainly acquire coverage with no waiting period.

The most significant disadvantage of American General is that customer service quality is low, especially with AIG Direct. However, if you work with an independent agency, you can get the service you need and save up to 70% on your life insurance plans.

When you contact a representative, they cannot go through other insurance providers to show you one that can provide you with a better price. Instead, an independent licensed insurance agent such as The Annuity Expert will search the market for you to determine which insurance carrier offers the best rate and coverage for your specific needs.

Next Steps

American General (AIG) may be a good option if you are looking for life insurance. The company has low rates and a wide variety of policies. However, it is essential to remember that AIG has had a poor financial track record. The company also received a high number of complaints from customers to regulators. You can request a quote to determine if American General suits you.

AIG Term Life Insurance Quotes

Feel free to contact us for an American General life insurance quote. The service is free of charge.

Life Insurance Inquiry

Frequently Asked Questions

What happened to the American general life insurance company?

The American General Life Insurance Company (AGL) is still operating and has not gone anywhere. It is a subsidiary of the American International Group (AIG), one of the largest insurance companies in the world. AGL provides life insurance, annuities, and retirement planning products to individuals and businesses across the United States.

How do I contact American general life insurance?

You can contact American General Life Insurance by calling 1-800-888-2452 or visiting their website,, for more information.

What is American general life insurance company?

American General Life Insurance Company (AGL) is an American International Group (AIG) subsidiary, providing life insurance, annuities, and retirement planning products to individuals and businesses in the United States.

*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost to you if you purchase a policy. It helps us keep the lights on!

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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