When selecting a life insurance company, is the biggest company the best choice?
AIG is one of the largest insurers in the world. They offer a large variety of term and universal life policies. But, is AIG the right choice for your life insurance needs?
Remember, it’s an important decision to protect your family with life insurance, though you want to make sure you’ve selected the best life insurance company you can, especially when considering term or no medical term.
To aid you in your decision making process, we took a look at their products, prices, customer service and more. Our complete, impartial review provides an overview of the entire American General Life Insurance Company.
Let’s take a deeper look:
American General’s Company History
AIG is a giant in the insurance industry. With over 90 million customers across 100 countries, they’re the largest commercial property and casualty insurance underwriter in the United States.
American General Life Insurance Company was actually founded in Shanghai, China. The original name was the American Asiatic Underwriters. They opened for business way back in 1919.
In 1926, American Asiatic Underwriters opened their first office in the U.S. The company name was changed to American International Underwriters Corporation. Eventually, the name was changed to American International Group. In 1969 the company went public.
AIG has a history of making news – and not always in a good way. In the early 2000’s, the SEC investigated AIG. The company was fined and criminal charges filed against some executives.
In 2008, the company was bailed out by the U.S. government to a tune of $182 billion in return for an equity stake. The money, plus interest, was repaid in 2012.
AIG was widely referred to as a symbol for the 2008 financial crisis. While certainly these past issues aren’t great, we found no real relevance to AIG today. Overall, customers and industry watchers consider AIG a reputable, financially-sound company.
They offer personal and commercial products including life insurance, property/casualty, annuities and retirement products. AIG is headquartered in New York with additional offices worldwide.
Aside from life insurance, AIG also offers home, travel and other types of insurance products. In many cases, you can get a discount by buying multiple different types of policies. If you already have a policy through AIG, you’ll definitely want to look into their life insurance options.
AIG’s Financial Ratings in 2017
AIG has strong financial ratings across the board. All four major insurance rating agencies awarded AIG an “A” rating or better. These agencies are:
The company is considered solvent and no problems are anticipated for the future. While their involvement in the 2008 financial crisis is worrying even today, experts seem confident the future of AIG is stable and scandal-free.
Company Products Available
As one of the largest insurance providers in the world, AIG has a huge variety of products. Term life offers coverage for a pre-determined period of time at a set rate. Whole life is a permanent policy which offers a degree of payment flexibility. AIG also offers indexed and variable universal life, which accrue cash over time.
Term Life Products
Term life products are great for people who want to lock-in a premium rate for a limited time. You can buy a term to last during specific life events, such as until your children graduate from college. AIG offers two types of term products:
This policy is for either 10 years or any number of years over 15. You can actually select the exact term length. Want a 22-year term policy? No problem. This is one of the few companies in the world to offer a term policy with this much flexibility.
Once the term is finished, or the policyholder turns 70, the policy can be converted into a permanent policy. Most other insurers cap conversion to the first 10 years.
AG ROP Select-a-Term
Similar to the Select-a-Term with one major difference. The ROP Select-a-Term allows for the 100% tax-free return of premium once the end of the term is reached.
Universal Life Products
They offer seven different universal policies for individuals. Briefly:
- AG Secure Survivor GUL II – For seniors 50 to 75. Helps guard assets and minimize taxes.
- Elite Global Plus II – Accumulates cash value based on the S&P 500 or other indices.
- Secure Lifetime GUL 3 – Level death benefits and some cash growth.
- Elite Index II – Indexed universal life with protection against cash loss.
- Asset Protector – Extra benefit allows for the early use of death benefit.
- Value+ IUL – Death benefit and protection only. Cash growth is separate.
- Elite Survivor Index II – Provides interest-crediting options.
Variable Universal Options
If you’re not adverse to a bit of financial risk, the AG Platinum Choice VUL might be worth consideration. This policy uses mutual funds to aggressive accrue cash. Note, this policy can’t be opened automatically. You need to contact an AIG rep to discuss your options.
Unsure what type of insurance will work best? AIG offers extensive help on their website. You can get a free quote in just two minutes. They also have an online questionnaire to help determine the best type of insurance for your current life situation. While this is no substitute for a one-on-one personal exchange, you can at least get a sense of which policies to explore further.
Filing a Claim
The majority of AIG products are sold through an AIG advisor. This is an authorized rep you’ll connect with through the website or by calling the company. When you need to file a claim, you simply contact the advisor you set up the policy with. This method of direct communication allows for more personal service.
You can also call the company toll-free. The Claims section of their website lists a variety of phone numbers for specific types of claims.
You can also visit the website and download pretty much whatever form you need. You then have to mail or fax the form in.
When filing a claim on a life insurance policy, you have to either call or mail in your information. AIG currently doesn’t allow for online claim filing.
As a huge multinational corporation, AIG devotes an impressive amount of money and time to charity. They focus giving on two mains areas:
- Arts and Culture
They support museums, rugby tournaments and seemingly everything in-between. They also accept sponsorship suggestions directly on their website.
They’ve also won a lot of awards recently. This might help reassure potential customers AIG is back on track after their financial restructuring. Some recent highlights:
- Business Insurance Innovation Award 2016
- Travvy Award 2016
The Final Verdict on the American General (AIG) Life Insurance Company
Many people will find it easy to overlook AIG. They’re a gigantic carrier, and they’re relatively recent history with 2008 the financial meltdown can certainly be concerning. You might think you’re buying a policy from a less than reputable corporation.
Our AIG Life Insurance Company review found this wasn’t really the case, however.
AIG offers a wide range of customizable policies. You can tailor your term length, add a variety of riders and otherwise create a policy for your specific needs.
AIG’s financial security, flexible policies and affordable prices are all worth our recommendation. If you’re looking into life insurance, you’ll want to check out the products available from AIG.