AIG Life Insurance Review: Overview, Facts, Features, Plans, Pros and Cons

Although AIG provides a diverse selection of life insurance products, the company's poor ratings in terms of customer service may be tough to overlook

Policies available:

Term, permanent & no-exam

Financial strength:

Strong

Complaints:

Unexpectedly numerous

Online availability

None

How we evaluate companies that provide life insurance

AIG is one of the largest insurance companies in the world, with millions of customers spread over more than 80 countries. Individuals can choose from term, whole, or universal life insurance policies when purchasing coverage from AIG. In addition, the organization provides businesses with a wide variety of investment and protection options to choose from.

Life insurance from AIG

In terms of overall performance, AIG received three out of five possible stars. As collected by the National Association of Insurance Commissioners, consumer feedback is factored into the scoring algorithm, as are judgments of the company's ability to meet financial obligations.

AIG life insurance –– the advantages and disadvantages

Advantages

It offers 18 different periods to choose from when purchasing term life insurance, with the most extended available term being 35 years.
An unusually high number of customers complained to the company's regulators, considering its size.

Disadvantages

In the 2021 U.S. Life Insurance Study conducted by J.D. Power, the company received a customer satisfaction score lower than the industry average.

AIG life insurance policy –– the different types offered

A variety of term and permanent life insurance products, in addition to accidental death and dismemberment insurance, are among the options you may purchase from AIG. You can purchase insurance coverage either through AIG Direct, a subsidiary of AIG or through a local insurance agent who works independently.

AIG term life insurance

Select-a-Term and QoL Flex Term are the two types of term life insurance available from AIG. There are 18 distinct term length options available through AIG Direct, including 10 years, any period between 15 and 30 years, and 35 years. At any time during the term, you can upgrade each type to permanent coverage at no additional cost. There is a range of coverage amounts available, from $100,000 to over $1 million. The primary distinction between the two policies is that the QoL Flex product includes a built-in "Quality of Life" accelerated death benefit. This benefit allows you to withdraw money from your policy if you are diagnosed with a chronic, critical, or terminal condition while the policy is still active, allowing you to take advantage of the policy's cash value sooner. Only terminal illnesses are eligible for the hastened death benefit offered by Select-a-Term.

AIG permanent life insurance

One can break down permanent life insurance policies from AIG into the following categories, each of which can accrue monetary value:

Applicants between 50 and 80 are eligible to receive guaranteed issue whole life insurance with coverage ranging from $5,000 to $25,000. The guaranteed issue life insurance application does not involve answering any health-related questions or undergoing a medical exam.
Insurance that covers one's entire life is known as universal life insurance and includes both assured and indexed universal life insurance policies.
AIG is no longer offering variable universal life insurance, which allows policyholders to accumulate cash value through various investment options as an option for purchase.

Some universal and indexed life insurance policies come standard with a feature called Quality of Life coverage. This feature offers living benefits covering chronic, critical, and terminal illnesses. Certain items are not distributed throughout the country in all of the states.

Complaints from AIG customers and their level of satisfaction

According to a study of data provided by the National Association of Insurance Commissioners, over the course of three years, AIG life insurance has attracted a far higher number of complaints to state regulators than would be expected for a company of its size. According to the 2021 J.D. Power U.S. Life Insurance Study findings, AIG received a customer satisfaction score lower than the industry average. The insurance provider came in at position No. 20 overall out of 21 businesses evaluated in the poll.

More about AIG life insurance

You can acquire a quote for life insurance by visiting the website of AIG or by phoning the quote hotline provided by AIG. The website offers instructional content that delves into the inner workings of life insurance and a calculator that estimates the cost of term life insurance. Policyholders have access to various features through an online portal, including the ability to see policy details, make changes to beneficiaries, and more. Other goods and services offered by AIG include the following:

Travel insurance
Customers with a high net worth offer insurance for automobiles, homes, yachts, and liability, in addition to loss-prevention services
Additional coverage for accidents and medical expenses
Annuities
Retirement planning services
Structured settlements are agreements that allow those who have been injured to obtain compensation in installments over time

Purchasing advice for life insurance

Decide the kind of life insurance policy you need, such as term or whole life, before comparing different providers. Make a decision regarding which riders you would like to be added to the life insurance policy. Please do the math to determine how much life insurance you require and how many years you want it to protect you. Check to see if the prospective insurance companies can provide the level of protection you require. When comparing prices, you want to ensure that all of the estimates you are looking at are for the same amount of coverage for the same amount of time. In addition, it is essential to check that the medical requirements of the coverage are suitable for your situation. For instance, if you want to avoid the medical exam for life insurance but are willing to answer questions about your health, you should ensure that the application procedure for each of the policies you are evaluating is consistent with your preferences. It's possible that price wasn't the primary factor in your purchase choice. Examine the number of customer complaints each company has received, as a high number of complaints may indicate that the service is of poor quality.

Methodology for rating life insurance companies

Our ratings for life insurance are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company's ability to pay future claims. The complaint index scores come from the National Association of Insurance Commissioners for individual life insurance. We consider the ease of communication and website transparency as part of the consumer experience category. Website transparency examines the breadth of policy details that are available online. We readjusted the scores to a skewed 5-point scale to determine the ratings for each insurance. These ratings are meant to serve as a guide, but we strongly suggest you look around for different insurance quotes and shop to get the best one that suits your needs.

Methodology for investigating complaints with insurers

During 2018-2020, we investigated the complaints submitted to state insurance regulators. We presented our findings to the National Association of Insurance Commissioners. The NAIC calculates a complaint index each year for each subsidiary of an insurance company. This index compares the company's share of total complaints to its size, as measured by its share of total premiums in the industry. This index aims to evaluate how different insurers compare to one another. Over the course of three years, we computed a comparable index for each insurer, weighting it according to the market share of each subsidiary. This allowed us to examine the complaint history of each company. The ratios for car, home (including renters and condo), and life insurance are all computed independently.