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Last updated on Apr 09, 2020

AIG Life Insurance Review

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AIG

  • 90 million customers in over 80 countries
  • Flexible options for all customers
  • Poor customer service
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How We Reviewed AIG Life Insurance

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6 companies compared

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2 features evaluated

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6 ratings analyzed

AIG Life Insurance Review

AIG offers competitive life insurance options to fit diverse needs. One of the best things about AIG is that it can cover almost everyone, offering life insurance that grows with you. With term, whole, universal, and permanent life insurance, you can find the right kind of coverage that is best for you with the ability to customize as needed.

AIG has a limited number of riders, but the advertised riders cover the most common needs, such as coverage for children and death benefit access. Guaranteed issue life insurance means that there is no medical exam required, so high-risk customers with medical issues can receive coverage, even if it is more expensive than usual.

With that said, AIG lands at the bottom of the pack in terms of customer service, with below-average scores from ratings sites like J.D. Power. If reliable customer service is a priority for you, especially with a product as long-lasting as life insurance, we recommend looking elsewhere.

ProsCons
Quick application
Flexible options
Poor customer satisfaction
Slow policy activation
Limited riders

The Life Insurance Factors We Analyzed

Customer experience

When it comes to customer service, AIG falls near the bottom of the pack. The company that issues its life insurance policies, American General Life Insurance, received far more than the average number of complaints registered with the National Association of Insurance Commissioners (NAIC) in 2018, which bodes poorly for the overall customer experience. AIG also came in dead last in J.D. Power’s life insurance study, one of the best indicators of a provider’s performance.

Coverage and rider information

When purchasing a policy from AIG, you can choose from a variety of options, including term life, guaranteed issue whole life, quality of life, and universal life insurance. AIG has fewer riders than other competitors, though there are some basics that we’re happy to see: a child protection rider, an accelerated death benefit, and a disability waiver of premium.

AIG does allow for policy conversion if you decide you would like to extend your term coverage to permanent, but conversion is limited to certain policies, so be sure to check with an agent about eligibility and fees.

Life insurance coverage features

Insurance types offeredTerm, whole, universal
Term lengths offered10, 15, 20, 25, or 30 years
Standout coverage featuresFlexible term options
Efficient claims processing
Financial stability
Wide coverage area

*Options vary by state.

AIG Life Insurance Overview: Financial Strength, Availability, and History

During the 2008 U.S. financial crisis, AIG received an enormous $182 billion bailout from the U.S. government that would carry the company for the next 14 years. AIG has since repaid that debt with interest and rebounded, though it still holds subpar ratings from two of the biggest independent rating agencies: S&P Global and Moody’s.

  • In business since: 1919
  • S&P Global financial strength rating: BBB+
  • Moody’s financial strength rating: Baa1
  • AM Best financial strength rating: N/A
  • States served: 50 plus Washington, D.C.

The Competition

AM Best Financial Strength RatingJ.D. Power 2019 U.S. Life Insurance Study ScoreNAIC Customer Complaints
AIGN/A2/5More complaints than average
AIGA++5/5Fewer complaints than average
AIGA++5/5Fewer complaints than average
AIGA+4/5Fewer complaints than average
AIGA++4/5Fewer complaints than average
AIGA+4/5Close to no complaints

All information accurate as of February 6, 2020.

The Bottom Line

AIG tailors its life insurance policies to the most common needs, and it has a few standout options. For instance, if you use tobacco, have complicated medical histories, or work in hazardous conditions, AIG’s guaranteed issue policy allows you to skip the medical exam and begin your life insurance policy that much faster. With that said, AIG doesn’t have the strongest financial ratings, and its customer service scores are incredibly low; if those things are important to you, you may want to start your search with a different provider.

AIG Life Insurance FAQ

Is AIG a good life insurance company?What types of life insurance does AIG offer?What is the average life insurance cost per month with AIG?Does AIG pay out dividends to its policyholders?Does AIG require a medical exam?Can you cancel AIG life insurance?