AIG Life Insurance Review

Jeff Root Jeff Root Posted in Reviews
Last updated on April 3, 2019

To begin with, here is an AIG Life Insurance Review of some of their popular products and if they are truly as good and epic as the name.

For instance, what’s is the first thing you think of when you see the letters AIG?

AIG life insurance logo

First, I know what I think! Financial Power House. So, I will be discussing just who this company is, what they do, and what are their faults and what are they great at!! Also giving AIG life insurance reviews from an agent point of view.

Second, let’s get down to who they are and what they do!

First question……

Is AIG A Good Life Insurance Company? Let’s Find Out!!

Brief History Of AIG

First, AIG stands for American International Group and is headquartered in New York City. AIG is a multinational financial conglomerate that specializes in finance and insurance. They operate in over 80 countries worldwide.

AIG was founded 98 years ago in 1919 and employ just under 50,000 people. In fact, that makes them in the top 100 largest companies in the world.

Again, Just An Enormous Company!

What Is AIG’s Main Business?

Above all, AIG is largely got their hands in almost everything that has to do with insurance. For instance, the three main businesses are:

  • General Insurance including commercial & Personal Finances
  • Life Insurance and Retirement Assets
  • Institutional Markets

Notably, in 2017, based on their businesses they did $49 billion in revenue with total assets on just under a half a trillion dollars. WOW, that’s big. However, it’s important to realize, they had a loss of 6 billion!

AIG and The 2008 Financial Crisis

In 2008, AIG was over leveraged in credit default swaps which caused them to sell massive amounts of insurance without hedging their investment.

Consequently, the US Government bailed out AIG with $180 billion dollars and took control of the company.

After 4 years the US Government sold off the potion of the shares and AIG gained back control of the company as uncle Sam exited. As a result, AIG financial rating hasn’t been A+ with AM Best.

AIG Insurance AM Best Rating in 2018 is A.

However, they should be in my opinion, an A+!

Now that we know a little about AIG’s past, let’s talk life insurance and if they live up to their big NAME!

How Much Does AIG Life Insurance Cost?

In short, we know AIG has a big name that is well recognized, more like a household name, but what about their products and services.

One thing about their Term life and Universal life products, for the most part, they are among the best priced.

Above all, when you can have a carrier with a big name and some of the best prices this usually is a win-win for everyone involved. However, the underwriting needs work and is very slow. But we will get into that in a bit.

First, let’s look at an AIG review on how they are priced against their peers.

AIG Term Life Insurance Products

Ok, as shown above, we talked about who AIG is and how they compete in pricing with other carriers. In fact, let’s talk about their bread and butter, what they sell and why should we get it from them.

Overall, if you purchase an AIG life insurance policy, will you be happy?

All in All, AIG has some of the best Term life insurance, Universal Life (UL), Variable Universal Life (VAL), Accident Death & Dismemberment in the industry.

Altogether, AIG offers many different variations of term life insurance that can fit anyone’s needs. Whether you are 21 out of college, middle-aged in your 40’s, or 70 years old. Ultimately, AIG term policies are flexible on where you are in life.

To summarize, here is an AIG review on their popular term product, Select A Term.

Select A Term

First, AIG’s Select A Term offers a 10, 15, 20, 25, 30 and a 35-year term. AIG is one of very few that offers a 35-year term. In fact, sometimes that extra 5 years means everything.

In this case, AIG offer’s 18 different durations from individual years from 15-30. Indeed, that is a lot of flexibility. As a result, it also gives the option of layering policies, or laddering policies and saving up to 50%.

AIG Select A Term also comes with full convertibility to a permanent life insurance policy. This can take place between either at the end of your term or age 70, whichever comes first.

In fact, AIG Select A Term is great for business owners wanting to protect themselves with a keyman policy and/or a buy-sell if there are multiple partners.

Because of the incremental terms from 15-30 years, it gives those sole income providers to protect the children that are young.

Those seniors out there that are having a hard time finding life insurance coverage past 80 years old, the select a term can give you the flexibility to age 88.

AG Ultra One

AIG also has a product called AG Ultra One. This is a one-year non-convertible policy.

  • Max $1,000,000/Min $100,000
  • Issue Ages 20-85

AIG Index Universal Life (IUL)

AIG Life Insurance Agent explaining policiesAIG has some of the best universal life policies. There flexible and among the best priced.
But first…

Above all, Indexed UL is one of the most diverse life policies in the industry. In fact, they have many models to choose from. Some of those models range from fixed rate models to variable models.

In most cases, you can pick and choose a diversified in various equity accounts.

Here are some of AIG’s IUL products.

Max Accumulator

Max Accumulator gives you the power to pick and choose what’s right for you. You can also borrow against the policy, TAX-FREE for any reason in the future, for example:

  • Making Home Improvements
  • Starting a Business
  • Paying for wedding or college
  • Filling the gaps for retirement income

With AIG’s Max Accumulator you can also,

  • Pick your face amount/Death Benefit
  • Pick the amount you pay
  • How often you pay
  • How the policy will grow

Value Protector

Value Protector is an IUL that focuses on death benefit protection. This IUL is designed for long term personal and business needs. It combines the advantages of a Guaranteed UL with strategies to reduce costs but give maximum value potential.

Here are some of the advantages of the Value Protector:

  • Optimized for Guaranteed Protection
  • Target Ages 40-70
  • Focused on guarantees but more risk tolerant than GUL
  • Cheaper alternative to GUL
  • The combination of cash value growth and Guarantees

AIG Variable Universal Life (VUL)

Now that we got the two most popular life insurance products out of the way let’s talk about VUL!

What is VUL?

Variable universal life (VUL) is a permanent life insurance policy with a savings component that is built in. This allows investment of cash value and the premium is also flexible.

How Does VUL work?

VUL combines the death benefit with a savings component to allow more flexibility when managing the policy. The savings element is separate sub accounts.

Every year the insured deducts what is needed to cover mortality and administrative costs. The remaining will be invested in separate accounts earning interest.

Sub Accounts are structured much like a mutual fund and very well diversified. The sub-accounts deduct management fees on top of an array of other management fees.

Because of the broad and diversified sub-accounts, it opens this up too much more fees than other Products. Our AIG review on this product is that unless you have a specific financial game plan, then this isn’t the product for you.

AIG Platinum Choice VUL

AIG’s VUL is flexible in that provides death benefit protection, upside market returns, and cash accumulations.

AIG Guaranteed Universal Life (GUL)

AIG has a superior product than most insurance carriers. As an agent, I am a big fan of the Secure Lifetime GUL 3 product by AIG. Here is our AIG review for the Secure Lifetime GUL 3.

Secure Lifetime GUL 3

If you want to lock in a guaranteed, tax-free death benefit there are not many better than AIG Secure Lifetime GUL3. Unlike other UL products, this is a GUARANTEE!!

The feature that many of my clients like is the Return of Premium option (ROP). You can receive 50% of all premiums paid on year 20.

Most importantly you can receive 100% of all premiums paid on year 25

However, cash values stay at a minimum. But if your main goal is to have that GUARANTEE, then you obtained your goal.

You also have the flexibility of reducing the death benefit and maintaining the guaranteed coverage period.

AIG’s GUL has two essential additions with their Secure Lifetime GUL 3. These will offer you guaranteed benefits when your living.

That’s almost like saying that you’re the beneficiary to your own policy!! Imagine that!!

Well, Now You CAN!

Here are the two additions that the Secure Lifetime GUL 3 offers.

  • Accelerated Access Solution is income when you get sick. Anytime during life, if you become chronically ill you can tap into the face amount of the policy. They will come via monthly payments until your illness subsides or the death benefit becomes exhausted.
  • Lifetime Income Solution is income for your lifetime. This addition will give you access to supplemental income later in life when you might need it most. These payments are tax-free and any remaining death benefit will be paid to your beneficiaries.

Final Thoughts on AIG GUL

As an agent, I am a big fan of AIG’s Secure Lifetime GUL 3. When I am shopping for a customer they are usually in the top 3 products that I look at.

The ROP is a great option to have with a Guarantee life insurance product. After all, we don’t have a crystal ball. This product gives you that opportunity to have one.

AIG AccidentCare Direct Plus

AIG has one of the best AD policies in the industry. Its guaranteed acceptance regardless of health like most AD policies. It is also guaranteed renewable for life. This is what separates them from the others as they usually expire at age 70. Coverage will be the same until age 70 then coverage remains but drops 50% for life.

My AIG review, I have this product for myself!!

Here are the options for AIG’s AccidentCare Direct Plus:

  • $100,000/$500,000 available ages 18-69, $50,000/$250,000 ages 70-80
  • 100% benefit paid if blindness occurs, loss of both hands/feet or limbs, 50% for one limb
  • If you become Quadriplegia, 100%, Paraplegia, 50%
  • Loss of total hearing 100%

AIG Life Insurance Underwriting Process

Well, you know the old saying, “Saving the best for last”, this isn’t one of them.

Although AIG has some of the best life insurance product portfolio in the industry, the underwriting is a little below par when it comes to how long it takes to get a policy approved.

It’s challenging when you have a superior name, best prices, and product in some cases, but you know beforehand that the underwriting process will take longer.

However, AIG is migrating to a new system that should speed up the underwriting process – we’ll see.

If you need life insurance quickly, we recommend looking for a no exam life insurance company.

If you’re willing to wait an extra week or 2 over another carrier for a decision, then AIG would be a fine choice for life insurance.

AIG Life Insurance Review Highlights

  • Company:  A
  • Price:  A
  • Term Products:  A+
  • IUL:  A
  • VUL:  B
  • GUL:  A+
  • AD:  A+
  • Underwriting:  B-

AIG Life Insurance Product Summary

Ok, well that was fun huh. AIG does have some phenomenal products you just can’t take that away.

They are always in the few carriers that I narrow it down to when talking to a client.

Price is always right there, they have flexible terms, and the GUL is among my favorite.

We are not in the business of selling. We are actually against that. We like to educate our clients and provide them with the best options.

We based those options on the specific profile of the client. So we tailor make you a life insurance policy.

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