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

Shawn Plummer

CEO, The Annuity Expert

When it comes to life insurance products, there are a lot of options to choose from. AIG life insurance offers a variety of policies to fit your needs, but it can be tough to decide which one is right for you. In this guide and review, we will outline the different types of life insurance policies offered by American General (AIG), and help you decide which one is right for you.

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

American General (AIG) Life Insurance Quotes

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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. They also perform well when it comes to the 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 it 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.

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.

AIG

AgeAmountPolicyFemaleMale
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

AgeAmountPolicyFemaleMale
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 of time. 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 does not have any savings component, which means it is usually the cheapest type of life insurance to buy.

AIG offers a term life product with different term duration options. You can buy a term for 10 years, or for up to 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 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 some 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, also known as final expense protection, offers guaranteed acceptance between ages 50 to 80. This means that you will not be refused coverage even if you have 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 offers the potential for flexible premiums and death benefit amounts, up to a certain limit. AIG life insurance is usually cheaper than other types of 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. Plus, this policy offers an adjustable death benefit, which means that the amount paid out 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 allowing 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 a type of 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, as well as fees.

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

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 it has higher coverage amounts for buyers who are between the ages of 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 two strategies are called the “par” strategy and the “cap” strategy. They are both based on the S&P 500. If you want a guaranteed minimum interest rate, you can invest in a fixed interest account.

AIG Life Insurance Riders

There are different types of life insurance riders that offer different levels of coverage or features. The availability of these riders may vary depending on the type of policy you choose. 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 that includes a death benefit for your children until they turn 19 years old.
  • 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 there is not enough cash available 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 the policy has ended. 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, the AGI’s Return of Premium rider will refund the premiums you’ve paid. The refund will happen after the initial term length is over.
  • Spouse/Other Insured Rider. This rider provides coverage for 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.  If you are disabled for at least six continuous months, this rider will pay your monthly charges.
  • 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 a period of time. The rider is not available if the face value of your policy is more than $5 million per insured life.

AIG Life Insurance Customer Service

Contact AIG customer service: (800) 888-2452

PO Box 818006

Cleveland, OH 44181 

Fax: 844-930-0370

Website

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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 and health insurance, travel insurance, 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 on their financial obligations. Something to consider since AIG life insurance policies are backed by the claims-paying ability of the issuing insurance company per the National Association of Insurance Commissioners (NAIC).

Before Buying AIG Life Insurance

American General Life Insurance (Aig)

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’re getting quotes for the same amount of coverage. Also, double-check that the policy’s medical criteria are appropriate for you.

To purchase life insurance plans, one must compare quotes from multiple companies first. 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 both 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 a better price. In essence, 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.

Final Thoughts

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

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Need Help Getting A Life Insurance Policy?

If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help make sure that you get coverage so that you don’t get declined.

Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you are able to get any life insurance.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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