Aig Life Insurance: Is It A Smart Choice?

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 selection of term, universal, and whole life insurance policies, including guaranteed issue whole life coverage for individuals between 50 and 80 years old. AIG's term life insurance policies are particularly flexible, with 18 different term durations to choose from. The company also offers permanent coverage options, such as whole and universal life insurance, which provide lifetime coverage and the opportunity to accumulate cash value. However, AIG has received criticism for its poor customer service and claims department, with low ratings from J.D. Power and a high number of complaints in the National Association of Insurance Commissioners (NAIC) database. Overall, AIG may be a good choice for individuals seeking customizable life insurance options, but those prioritizing customer service and insurer reputation may want to explore other providers.

AIG's customer service and claims reviews

According to customer reviews, AIG offers a broad suite of products that are tailored to meet the needs of different groups. The company also simplifies the purchase process by allowing consumers to complete applications and make payments online. However, AIG's customer service and claims department have been criticised for being challenging to contact and for requiring a number of forms to file a claim or change policy ownership. This has led some families to feel scammed.

AIG's life insurance sector has received more complaints than expected for its personal life products, with the National Association of Insurance Commissioners (NAIC) reporting a complaint index of 2.52 for individual life insurance products in 2022, indicating that the NAIC received almost three times the expected number of complaints for these products.

Overall, while AIG offers a wide range of life insurance products and flexible policy options, its customer service and claims reviews are a cause for concern, with the company receiving a high number of complaints and low customer satisfaction scores.

AIG's term life insurance

While AIG's term life insurance offers flexibility and competitive rates, the company's customer service and claims reviews are less favourable when compared to other top insurers. This is an important consideration when purchasing a permanent life insurance policy, as it can be challenging to contact the right person and there may be a need for extensive paperwork when filing a claim or changing policy ownership.

AIG's universal life insurance

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

Universal life insurance policies from AIG are available for individuals aged 18 to 80, with a minimum face value of $50,000. The Max Accumulator+ indexed universal life policy also offers coverage without an exam for those under 50 years old, with a policy face value below $500,000. When purchasing a universal policy, individuals can choose between a death benefit that equals the policy's face value or its face value plus its cash value, although this option will increase the rates.

The policy's cash value can be accessed through withdrawals or policy loans, similar to most universal life policies. Additionally, AIG offers the option to purchase paid-up additions, which increase the death benefit without raising the premiums. The cash value can also be used to pay a portion of the premiums. AIG also allows policyholders to access their death benefit while still alive through the Accelerated Access Solution if they are diagnosed with a chronic illness, or through the Lifestyle Income Solution after they turn 85.

AIG's whole life insurance

AIG's guaranteed whole life insurance is available to individuals between the ages of 50 and 85. There is no health questionnaire or medical exam, as acceptance is guaranteed. The policies are limited in size, with a maximum coverage of $25,000. During the first two years of the policy, AIG will pay a reduced death benefit unless death occurs due to an accident. AIG's whole life insurance policies have level premiums for the duration of the coverage, which can be extended throughout the insured's lifetime.

AIG's variable universal life insurance

There is no participation rate or cap on the performance of these investments, meaning there is a higher upside potential. However, there is also no floor, so you can lose money if you choose the wrong investment accounts.

Variable policies are available up to age 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 include its cash value, though quotes for this option will be higher.

Compared to other insurers, AIG ranks poorly in terms of customer service. It received a low rating from J.D. Power for customer satisfaction and has a high NAIC Complaint Index compared to its size. Therefore, those who prioritise top-notch service may find other insurers to be a better fit.

Overall, AIG's variable universal life insurance can be a good choice for those seeking permanent coverage and wanting to explore a diverse range of investment options. However, it is important to carefully consider the higher risk involved and the company's poor customer service ratings before making a decision.

Frequently asked questions