AIG Life Insurance Review for 2019

AIG Life is a leader in the life insurance industry. It’s a large and stable company serving customers throughout the world.

These facts alone may propel AIG onto your shortlist as you shop for life insurance coverage to protect your family.

But life insurance is personal, and you’ll need to know more about AIG before partnering with the company. So let’s take a closer look at AIG Life in this insurance review.

Guide to AIG Life Insurance:

Applying for Coverage

aig life insurance reviewWhat sets AIG apart to me is its flexibility:

AIG, which has been writing policies since 1850, competes in a wide variety of life insurance product lines.

Whether you’re shopping for a complex variable universal policy or a simple term life policy to protect your growing family, there’s a good chance AIG can compete for your business.

Deciding if AIG fits your needs precisely will depend on the details of your life.

Unlike many other carriers, AIG lets you apply and get a decision about your coverage electronically, though you do usually have to work with an agent or a financial advisor.

The company makes its coverage decisions quickly, too, which can help you get coverage in place more quickly.

Existing customers can update beneficiaries, addresses, and payment details online on AIG’s site. If you wanted to cancel your coverage, you’d need to call the customer service staff.

AIG has helpful tools on its site as you shop, including a life insurance needs calculator.

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About AIG’s Traditional Life Insurance Policies

Like most life insurers, AIG sells temporary and permanent life insurance policies.

Temporary Coverage

Commonly known as term coverage, these policies last for a specific period of time which we call a “term.” When your policy’s term expires you’ll need to make other plans for your insurance needs.

Term policies can usually provide simple and more affordable options for millennials and other younger shoppers.

Permanent Coverage

Often categorized as whole life insurance, this coverage can last the rest of your life.

Permanent policies almost always come with an added cash value which you can access in a variety of ways as time passes.

What Makes AIG Stand Out?

AIG’s term and permanent policies are fairly typical for a large insurance leader, but they stand out in a few ways:

Select-a-Term

AIG lets you customize your term life policy’s term.

If for some reason you needed an 18-year term or a 23-year term instead of a 10-, 20-, or 30-year term, AIG could provide it. (Older applicants may face limits on the lengths of their terms.)

Smaller Term Policies

Shoppers can get smaller term life policies as low as $50,000 in face value.

Some companies require higher face values for term policies.

Return of Premium

AIG specializes in a return-of-premium term policy.

These policies cost more, but you could reclaim your paid premiums after your policy’s term expires, assuming you lived beyond the length of your term.

Some people like ROP policies because they feel like their premiums were wasted if they survived without needing the coverage.

Single Child Rider

You could opt for AIG’s child rider which could extend part of your coverage to all your children.

Other companies require a different rider for each child.

Typically I wouldn’t recommend life insurance on a child, but if you need it, this is one of the simplest and most efficient ways to get it.

AIG Direct

While most AIG policies must be purchased through an agency or a financial advisor, the company does offer direct-to-consumer policies through AIG Direct.

Wide Array of Permanent Options

AIG has level premium whole life policies along with more complex options such as indexed or variable universal coverage which allows you to invest your policy’s cash value or use it to adjust your coverage amount and/or premiums later in life.

No Exam Insurance Options

To get the best in life insurance, you’ll typically need to take a medical exam.

During your exam, a physician’s assistant or nurse will take your blood pressure, draw some blood and/or collect a urine sample, check your weight and height, and so on.

Insurance underwriters will use what they learn from your health exam to determine your overall health which helps them decide whether to approve your application.

Your health — along with other factors such as your job, hobbies, and habits — will also determine how much you’ll pay in premiums.

When to Skip the Health Exam

Understandably, people like to avoid this medical exam when possible. In fact, some people don’t even consider a policy if it requires a medical exam.

This is usually a mistake, especially if you’re young and healthy and can qualify for rock-bottom life insurance rates that would stay the same for decades. Without the medical exam, you’ll pay a lot more for your coverage.

No-exam insurance does make sense in some cases, though, especially if you have complex health issues or you need only a small amount of coverage for final expenses.

AIG excels with these kinds of policies.

AIG Guaranteed Issue Insurance

The simplest of all no-exam policies are called guaranteed issue policies. You skip the exam, of course, but you also answer very few health-related questions.

AIG’s guaranteed issue insurance sets the standard in the industry. You can get only $25,000 in coverage, but you can have the coverage in place quickly and easily, usually within a business day.

AIG’s policy also includes an accelerated death benefit which means you could file a claim while still alive if you’re diagnosed with a terminal or chronic illness.

But I’ll say it again: You’ll pay too much for the convenience of no-exam insurance if you’d sail through a health exam, qualifying you for a quality term life policy at a low cost.

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Reasons to Consider AIG for Life Insurance

Simply put, your life insurance should fit your life. Hundreds of companies write life insurance policies, and each company features slight differences which could make its policies a better fit for the contours of your life.

Many of the differences between companies will make little or no difference to a healthy applicant who needs $500,000 or $1 million in term life coverage.

Many millennials fall within this category, and this is a good place to be: You can compare insurance based solely on price, quality, and customer service.

But if you have a diagnosed illness, or if you use tobacco or marijuana, you’ll want to pay closer attention to the differences between insurers.

Who AIG Insurance Fits Best

AIG, for example, tends to provide more affordable insurance to applicants with:

Diabetics

If unmanaged, diabetes can prevent an insurance company from covering you.

However, you should be able to get coverage if you manage your condition successfully and consistently.

AIG is among the more tolerant insurance companies for applicants with diabetes.

Overweight

Applicants who are overweight tend to pay more because excess weight leads to other health problems.

But what if you’ve recently lost weight? Some insurance companies expect you’ll regain the weight and will classify you accordingly.

AIG tends to be more tolerant of applicants who are trying to improve their health by losing weight.

Where AIG Insurance Falls Short

On the other end of the spectrum, AIG may not be your best option if you have:

  • A Complicated Family History: AIG tends to look less favorably on complex family health histories. If multiple family members have had the same life-threatening condition, AIG will take note.
  • High Cholesterol: AIG also has a reputation for classifying people with high cholesterol readings into lower categories which translates into higher premiums for you as a consumer.

An independent life insurance agent, either online or in your community, can be a great resource if you need an insider’s knowledge about a life insurance company.

Special Products Make AIG Stand Out

AIG is a shoo-in for your shortlist, especially if you’re young and healthy and want a way to protect your family financially from the unexpected.

Give AIG an even-closer look if:

  • You need an irregular term length: You’ll like AIG’s Select-a-Term program which doesn’t limit your term to round numbers.
  • You want a return-of-premium term policy: AIG sets a high standard for these policies, though they will cost more.
  • You’re shopping guaranteed issue: These no-exam policies can be a life-saver if you’re older and want easy-to-access coverage for final expenses or small debts.

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

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