Aig Life Insurance: A Reliable Payout History?

AIG, or American International Group, is a life insurance company that provides customizable policies to fit a wide range of financial situations. The company offers a variety of term and permanent life insurance policies, including term life insurance, whole life insurance, universal life insurance, and accidental death and dismemberment insurance. While AIG has received some negative reviews for its customer service and claims process, it is important to note that the company has a solid financial strength rating and offers unique coverage options tailored to its clients' needs. This includes guaranteed universal life insurance, which provides permanent coverage at a lower price than most cash value policies, and Select-a-Term, a term life insurance policy that can be customized with terms between 15 and 35 years.

With its flexible product selection, AIG aims to ensure that individuals and families can find the best coverage for their specific circumstances.

AIG's customer service

In the US, customers can contact AIG at 800-CALL-AIG (1-800-225-5244), 1-888-280-1243, or 1-800-448-2542.

However, other customers have shared positive experiences with AIG's customer service, particularly regarding their helpfulness and quick settlement practices during difficult times. One customer shared that AIG "paid out in full" for their critical illness cover, and that they were "thorough and helpful throughout the whole process". Another customer praised AIG for their "quick settlement and professional work practices" following a payout for their late mother's life policy.

AIG offers a range of insurance products, including life insurance, travel insurance, and property insurance. The company is headquartered in New York and has a presence in over 80 countries. It is important to note that experiences may vary across different locations and departments within the company.

AIG's financial strength

AIG, or American International Group, is a leading global insurance organisation that provides insurance solutions to businesses and individuals in approximately 190 countries and jurisdictions. It has a solid financial strength rating of A from A.M. Best, a credit rating agency that gives insurance companies financial strength ratings.

In terms of financial performance, AIG reported total assets of $65.2 billion in 2017, which increased to $79.7 billion in 2023. The company has demonstrated its ability to weather financial crises, such as the 2007-2008 financial crisis, where it received a bailout from the Federal Reserve and successfully repaid the funds to the United States government in 2012.

Overall, AIG's financial strength is evident through its diverse business operations, global presence, strong financial performance, ability to weather crises, consistent payout of insurance claims, and recognition from independent evaluators.

AIG's policy types

AIG offers a wide range of insurance policies, including car, home, travel, personal accident, and life insurance.

AIG's life insurance policies include term life insurance, whole life insurance, and universal life insurance. Term life insurance lets a policyholder buy coverage for a specific period, generally between 10 and 30 years, with flexible terms and amounts. AIG's term life insurance has a minimum face value of $50,000, but you can purchase up to $10 million in coverage if approved. Whole life insurance provides coverage for the policyholder's entire life as long as premiums are paid and also has a cash value component. Universal life insurance is a flexible type of permanent coverage that allows for reduced or paused premium payments if there is sufficient cash value.

AIG also offers guaranteed issue whole life insurance for individuals aged 50 to 85, providing up to $25,000 in coverage. Additionally, they provide accidental death and dismemberment (AD&D) insurance, which requires no medical exam and offers policies up to $500,000 in coverage for people aged 18 to 80.

AIG's direct-to-consumer approach to life insurance allows customers to customize their policies with licensed agents, making the process personalized, cost-effective, and reliable.

AIG's riders

AIG's life insurance riders are a convenient, flexible, and cost-efficient way to get additional coverage without needing to complete further applications or exams. Some types of AIG's life insurance riders can be added or dropped at any time, even if you bought the policy years ago. However, other riders are only available when the life insurance policy is first issued.

Accidental Death Benefit Rider

This functions like an accidental death insurance policy, providing up to $250,000 in additional coverage or the term policy's face value if it's less than $250,000. This rider must be purchased at the same time as the life insurance policy is issued.

Child Rider

The Child Rider allows you to add children to your policy starting as early as 15 days old, up until their 19th birthday. It pays a predetermined death benefit to the insured parent if their child passes away. You can also add multiple children under the same child rider.

Terminal Illness Rider

If you're diagnosed with a terminal illness and have less than two years to live, the Terminal Illness Rider lets you receive a portion of your death benefit while you're still alive. This rider is included for free with term life insurance policies, but there is a fee of up to $500 for accelerating the death benefit.

Waiver of Premium Rider

If you become totally disabled, the Waiver of Premium Rider waives your life insurance premiums. This rider is available to those whose life insurance policies have a face amount of $100,000 or more. It must be added when the policy is issued, but you can drop it at any time.

AIG's brand trust

AIG, or American International Group, is a well-known insurance company with a presence in over 80 countries and a history spanning more than a century. The company's life insurance division, in particular, has established a level of trust with its customers, which is reflected in various reviews and ratings.

According to MarketWatch Guides, AIG scores well for brand trust, policy types, and riders. The company has a solid financial strength rating of A from A.M. Best, a reputable credit rating agency. This indicates that AIG has a strong ability to pay claims and honour its insurance obligations.

AIG's life insurance products are also trusted by over a million families in the United States. The company has been focused on helping Americans secure affordable life insurance since 1995, offering valuable and in-depth information to protect their loved ones. Their direct-to-consumer approach ensures that licensed agents guide customers through the process of selecting the right policy for their needs.

While AIG has received some negative reviews, particularly regarding customer service and claims handling, there are also positive testimonials from customers who have received payouts. For instance, one customer on TrustPilot gave AIG five stars, expressing gratitude for their quick settlement and professional practices during a difficult time.

Additionally, AIG has demonstrated its commitment to supporting families by working with the child bereavement charity Winston's Wish. The company also offers a funeral pledge, where they pay up to £10,000 in advance of the final settlement to help cover funeral costs, which is higher than the typical amount offered by other insurers.

In terms of financial stability, AIG has received an A rating from AM Best, indicating an excellent ability to pay claims. This contributes to the overall brand trust that AIG has established in the insurance industry.

However, it is important to note that AIG's customer satisfaction ratings could be improved. According to J.D. Power's 2022 U.S. Individual Life Insurance Study, AIG scored below average, and the National Association of Insurance Commissioners (NAIC) has reported a high number of complaints relative to the company's size.

In conclusion, while AIG has established a level of brand trust with its extensive history, financial stability, and positive customer testimonials, there are also areas where they can improve to enhance their reputation and trustworthiness.

Frequently asked questions