AIG is no doubt, a great life insurance company that excels in providing a wide variety of customizable policies to fit almost every financial situation. Though the AIG financial rates aren’t the absolute cheapest, it is the company’s flexible product selection that sets it apart.
From the term life insurance policies which can be adjusted and combined to reflect your financial obligations to the guaranteed universal policies that might be used for the income, especially in your senior years, the coverage options of AIG are unique and are focused on addressing the client’s needs.
The company covers almost more than 90 million people in more than 80 countries around the world. AIG also offers a range of insurance and investment products to different businesses. We can say that the only real downside to AIG is its customer service & claims reviews that don’t hold up to other top insurers, which is no doubt a concern when one purchases a permanent life insurance policy.
You can buy its policies through AIG Direct, which is a subsidiary of AIG, or any independent insurance agent. Combined with competitive options for people with complicated health histories, AIG is surely a great first look for all life insurance shoppers.
Pros and Cons of AIG life insurance
- Competitive rates of the applicants of all ages
The life insurance rates are determined by various factors that include the policy itself i.e., term length and the coverage amount, and the health of the applicant that include age and health history. The whole life insurance gets more expensive, the older you get when you apply. On the other hand, AIG term life insurance retains a below-average cost even for the applicants that are in their 60’s.
- Wide range of policy options
life insurance is not at all a one-size-fits-all financial product. It is very important to be able to tailor a term length, amount of coverage, and features that fit your requirements. Though some AIG policies may not have the customizable riders available elsewhere, AIG comes in quite a variety of term lengths and even starts at affordable, low coverage death benefits.
- The application length is shorter than average
If you happen to use an independent broker, it will obviously help you avoid many of the typical headaches of the life insurance application. No doubt, it is still nice to know that the AIG standard application form is shorter than an average form. Therefore, you will be able to read through it and understand it quickly.
- Convertible term options
This is worth noting that AIG offers excellent term life insurance at a very affordable price. The important part is that one should always consider when looking into the term life insurance whether the policy has a convertibility option.
One should also know the meaning of convertibility, which is the option to change your term policy into a whole life insurance policy without even giving any proof of health changes. Being able to convert the term insurance policy is quite valuable if your health happens to change, and you cannot be able to qualify for life insurance anymore.
- The average turnaround time to activate a policy
The time for a life insurance policy to become active depends on a lot of factors. The insurance carrier may request documents from your doctor, or there may be a higher volume of applications to a carrier. The average turnaround time for AIG policy to become active is a little slower than others, but that might not be the case for your application.
- Average customer ratings
For an insurance company that has been around as long as AIG and with so many customers that it has, it is quite obvious to have complaints. AIG insurance doesn’t fare as well in some of the customer ratings like the J.D. Power, or when compared to any competitors in the NAIC’s national complaint index.
- Confusing brand
The company American International Group or AIG has a lot of counterparts and affiliates that can make understanding where the insurance policy is coming from impossible. You will come across quite a few names like AIG Direct, AIG 100, American General Life, and United States life insurance of N.Y. When a customer searches online, it is quite helpful to represent a simple and precise webpage for the customer. Because of its size, AIG can be confusing as it has many company names that they do business with.
- Companies history
AIG is a nationally recognized American brand. There could be many people who do not know that it has a dark past. The company during the 2008 financial crisis required a bailout package of $182 Billion. Later on, they surely were able to turn the company back around and repaid all the money plus interest to the U.S. government in 2012.
The cost can be one of the most important factors when it comes to choosing a life insurance policy. If you are getting confused about deciding between the policies, it is safe for you to go with the cheaper option if it provides the proper amount of insurance coverage.
Cost makes AIG a good starting point for many shoppers. As age is one of the biggest determinants of the cost of life insurance, and across all the age ranges, AIG tends to have various cheaper-than-average policies. You have to keep in mind that the cost of your insurance policy depends on various factors, so it is better to compare in order to be sure.
Besides age, health also plays a big role in setting life insurance costs. Not every insurance provider weighs health conditions the same. For example, if you have cholesterol, one company may be more competitive than the other. When looking for life insurance companies, make yourself sure to choose the ones that are more accommodating to your health circumstances.
A life insurance policy usually lasts for 20 or 30 years in order to cover various debts and expenses like the mortgage and college costs. Keeping that in mind, there are a number of factors to see how you choose a company that you are sure will be around that long.
- The number of policyholders for AIG is more than 5.2 million.
- It was founded in 1850.
- It’s Standard and Poor’s rating is A+.
- Moody’s rating is A2.
- A.M.Best rating is A.
There are millions of customers that AIG serves and has been around for more than 150 years. This should be enough to ease anyone’s concerns. Also, the strong ratings from financial rating companies like S&P, Moody’s, A.M.Best prove that AIG is no doubt in good standing, and it is likely to be sticking around.
- Customer ratings
It is sometimes helpful for us to know what the experts think about the life insurance companies, but it is also good to know what actual customers and the consumer sentiment sites say. AIG has customer ratings that are above average across the board.
Though AIG falters in some areas like the J.D. Power’s overall satisfaction score or the NAIC’s complaint index, this has to be kept in mind that their large customer base and a very vast majority of the customers are largely satisfied.
- J.D. Power rating is 2/5.
- BBB rating is A-.
- Consumer Affairs rating is 3.4/5.
- Consumer’s Advocate rating is 4.9/5.
- NAIC complaint index rating is 3.58.
J.D. Power provides studies that rate the insurance companies across product offerings, price, interaction, clarity of statements, communication, and application process. An overall satisfaction score is based on how the life insurance clients rate their different experiences with the insurance provider.
The BBB or Better Business Bureau rates the companies across a large swath of criteria. Though the consumers can submit ratings to it, these scores are not actually taken into account in their rating, although the tangential metrics that take into account customer service are.
Consumer Affairs is a platform that allows the consumers to directly rate the companies, while the Consumer’s Advocate rates companies according to their stability, reputation, and policy coverage.
The National Association of insurance Commissioners (NAIC) tracks the number of complaints that are submitted to the state insurance departments with the national complaint index. A 1 score is the baseline average, and a 0 score means there weren’t enough complaints to count.
- Term life insurance
Term life insurance is quite an affordable coverage option that is created to cover you for a fixed price over a set period of time. Some of the applicants may be able to forgo the medical exam, though it depends on their policy, age, and health.
- Select a term
- Policy conversion
The term policy is actually convertible to a whole life policy until the earlier of the end of the term or up to the age of 70.
- Universal life insurance
- Whole life insurance
This is a more traditional style of permanent life insurance. Such a type of policy is designed to have consistency. The premiums are consistent and unchanging, the guaranteed death benefit is consistent, and the cash values are potentially constant.
- Guaranteed issue whole life insurance
This policy is quite similar to the whole life insurance policy, though it is much more straightforward. The ideal targets for such a policy are the people between the ages of 50 – 85 and who are not insurable or would not like to take any type of medical exam in order to qualify. Such plans are used for medical bills or funeral costs.
- Accidental death insurance
Accidental death insurance is a coverage that can be purchased to help cover if the policyholder is seriously injured or killed in an unexpected accident. This is one of the few policies that AIG offers with no medical exam requirements.
Since the AIG’s accidental death insurance policies have no term, therefore, they can provide short-term insurance coverage while you apply for another policy, or if you need insurance coverage for a limited period of time.
There is a wide range of riders that AIG offers. A rider is basically a policy add-on for an additional cost. The riders allow you to customize a plan in order to meet your needs adequately.
- Child Protection Rider
This rider covers your children with life insurance from age 15 days to 19 years.
- Disability Waiver of Premium Rider
If you happen to become totally disabled as a result of a qualifying event, your premiums are waived after a six-month waiting period. The rider ends on the policy anniversary nearest to your 65th birthday.
- Accelerated Death Benefit Rider
If you need your life insurance death benefit early, then this rider provides you access to 50% of your death benefit or a maximum of $250,000. The acceleration benefit offers this to clients who have a terminal illness and a life expectancy of 12 months or less.
- Accidental Death Benefit Rider
This rider will give you additional coverage if your death happens to be the result of an accidental injury.
There are various permanent insurance options for AIG to be considered. The company also offers a great term insurance lineup where you are able to lock in your coverage and then decide to convert the policy later in your life. If you are making up your mind to place your insurance with a strong rated insurance provider who helps millions of people, then AIG is obviously a very good choice.
You have to keep in mind that their customer service might be a bit spotty, and you may have issues connecting with them if you require any type of help with your insurance policy. The best idea is to compare AIG with other highly rated companies and then make your decision. Ask us how much a funeral costs. We have Mutual of Omaha burial insurance. Compare us to Colonial Penn or Globe life insurance
Hi, I’m Mitch Winstead from Advanced Mutual Group. I have been selling burial insurance for over 20 years. Our website is http://www.advancedmutualgroup.com Our Facebook page is http://www.facebook.com/advancedmutualgroup.com
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