Aig Life Insurance: Am Best Rating Explained

AIG, or American International Group, is a life insurance company that provides a wide range of policy options, including term life insurance, whole life insurance, and universal life insurance. The company scores well for policy types, riders, and brand trust, with an A rating from A.M. Best indicating excellent ability to pay claims. However, AIG has consistently received poor customer satisfaction ratings and a high number of customer complaints, which may be a significant drawback for potential customers.

AIG's customer service and claims reviews

AIG has received mixed reviews for its customer service and claims handling. While some customers have expressed satisfaction with the company's services, others have reported negative experiences.

On Trustpilot, AIG has received numerous complaints about its handling of insurance claims. Several customers have reported issues with denied or delayed claims, unhelpful customer service representatives, and difficulty reaching the company. There are also complaints about the company's travel insurance, with some customers feeling that they were misled about the coverage provided and experiencing difficulties in filing claims.

Similar sentiments are echoed in reviews on Yelp, where AIG has an average rating of 1.6 out of 5 stars. Customers have complained about issues with billing, cancellations, and a lack of responsiveness from the company. There are also concerns about the company's business ethics and the fine print in their policies, with some reviewers feeling that AIG intentionally makes it difficult for customers to understand the terms and conditions fully.

In terms of ratings, AIG received a score of 2 out of 5 from J.D. Power for customer satisfaction. Additionally, the company has a disproportionately high NAIC Complaint Index compared to its size, indicating that it has received a higher number of complaints relative to other companies in the industry.

On the positive side, AIG does offer a broad suite of products that are tailored to meet the needs of different customer groups. The company also provides online tools and resources that allow customers to complete applications, make payments, access policy information, and update their details.

Overall, while AIG offers a wide range of insurance products, its customer service and claims handling have received mixed reviews. Some customers have experienced challenges with denied or delayed claims, unhelpful customer service, and difficulty reaching the company.

AIG's term life insurance policies

• Accidental Death Benefit: Provides up to $250,000 in additional coverage, or the term policy's face value if it's less than $250,000, in the event of an accidental death.
• Child Rider: Covers all of the policyholder's children with a single rider, providing between $500 and $25,000 of coverage until the child turns 25 or the policyholder turns 65.
• Terminal Illness Rider: Allows the policyholder to receive a portion of their death benefit while still alive if they are diagnosed with a terminal illness and have less than two years to live. This rider is included for free with AIG's term life insurance policies, although there is a fee for accelerating the death benefit.
• Waiver of Premium Rider: Waives premiums if the policyholder becomes totally disabled for at least six months, as long as the total disability persists. If the policyholder becomes totally disabled after the age of 60, the coverage extends for up to one year or until they turn 65.

AIG's universal life insurance policies

AIG offers two indexed universal life insurance policies: the Value+ Protector and the Max Accumulator+. A portion of the premiums fund the cash value of the policy, which can be held in a fixed-interest "subaccount" with a guaranteed interest rate of 2%, or invested in index accounts. The index accounts are similar to mutual funds, with their performance based on the performance of an index. AIG offers three or four index account options, depending on the universal life insurance policy.

The policy's cash value can be accessed via withdrawals or policy loans, and the policyholder may also have the option to purchase paid-up additions, which add to the death benefit without increasing premiums. The policyholder can also use the cash value to pay for a portion of their premiums.

Universal life insurance policies are a good option for individuals who want lifelong coverage and the flexibility to adjust their premiums and benefits. While AIG's universal life insurance policies offer these benefits, it is important to note that the company has received poor customer service ratings, which is a concern when purchasing a permanent life insurance policy.

AIG's variable universal life insurance policies

AIG's variable universal life insurance policy is called the AG Platinum Choice VUL. This policy is similar to the company's indexed universal policies but has a wider variety of cash value investment options.

The accounts in AIG's variable universal policy are actively managed mutual funds that span a wide variety of investment focuses. There's no participation rate or cap on the performance of these investments, meaning there's a higher upside potential. However, there's also no floor, so you can lose money if you choose the wrong investment accounts.

Variable policies are available up to the age of 80 and require a $100,000 minimum face value. As with AIG's indexed universal life insurance, the death benefit can either be the policy face value or also include its cash value, though quotes for this option will be higher.

Variable universal life insurance combines lifelong insurance protection with flexible premiums and cash value you can access while alive. It lets you invest and grow the cash value through subaccounts that operate like mutual funds. Exposure to market fluctuations can generate high returns but may also result in substantial losses.

A VUL is a type of permanent life insurance policy that allows for the cash component to be invested to produce greater returns. VUL insurance policies are built like traditional universal life insurance policies but let you invest the cash value in the market via subaccounts.

The return to the cash component is not guaranteed year after year, and it is possible to lose money. If your cash value balance is too low, you could need to pay higher premiums to keep your VUL.

AIG's accidental death and dismemberment insurance

One of the benefits of AIG's accidental death and dismemberment insurance is that it does not require a medical exam for approval. As long as the applicant meets the age requirement of 18 to 80 years old, they are guaranteed approval. This makes it a good option for individuals who may have been denied traditional life insurance due to health reasons. The policy also has a short application process, and coverage can often begin the same day.

The payouts from AIG's accidental death and dismemberment insurance vary depending on the type of loss or injury. In the case of accidental death, the beneficiary will receive 100% of the face value of the policy. For non-fatal injuries, the payout varies based on the type of loss, the severity of the injury, and the duration of paralysis (if applicable). For example, the loss of one limb may qualify for 50% of the policy coverage amount, while the loss of two or more limbs may qualify for 100%.

It is important to note that AIG's accidental death and dismemberment insurance does not cover injuries or deaths caused by surgery, mental or physical illness, drug overdose, bacterial infection, drinking and driving, suicide, or high-risk activities such as skydiving or car racing.

Overall, AIG's accidental death and dismemberment insurance can provide peace of mind and financial protection for individuals and their loved ones in the event of a covered accident. It is a valuable supplement to traditional life insurance policies and can be particularly useful for those who may not qualify for other types of life insurance.

Frequently asked questions