American General Life Insurance: Is It Worth The Hype?

American General Life Insurance, also known as AIG, is a subsidiary of Corebridge Financial (formerly AIG Life & Retirement), a multinational finance and insurance corporation with a presence in over 80 countries. With over 90 million customers, AIG is one of the world's largest insurance companies. The company offers a range of insurance products, including term life insurance, permanent life insurance, accidental death and disability insurance, and business life insurance. While AIG has received positive reviews for its financial stability and flexible policies, there are also negative reviews highlighting issues with customer service, claim handling, and policy cancellation.

American General's financial strength and stability

American General Life Insurance, also known as AIG, has been in business since 1919 and is headquartered in the US. It is the life insurance division of American International Group (AIG), a multinational finance and insurance corporation with operations in over 80 countries. AIG is one of the world's largest insurance companies, serving over 90 million customers worldwide.

In terms of financial strength and stability, American General has received high scores from multiple rating agencies. As of 2023, the company's assets totalled $160,979,555,161, with liabilities of $152,056,810,745, and capital and surplus of $8,929,308,244. This gives American General an assets-to-liability ratio of 105.87%.

The company's financial strength is further demonstrated by its ability to pay claims. According to an insurance agent, American General has never failed to pay a valid life insurance claim in its history. This track record, combined with its financial strength and stability, has led insurance professionals to recommend American General life insurance to their clients, family, and friends.

American General's parent company, AIG, faced negative press and a government bailout in 2008 due to risky investments. However, it is important to note that life insurance divisions operate separately from other portions of financial institutions, and funds cannot be co-mingled. AIG also repaid the government loan a year early, in 2013, and was subsequently listed as a top insurer worldwide in four categories by Global Finance magazine.

In summary, American General Life Insurance's financial strength and stability are backed by its strong financial position, high ratings from agencies, and history of paying valid claims. Its association with AIG provides both benefits and drawbacks, but the separation of life insurance divisions from other financial operations adds a layer of stability.

AIG's history and reputation

American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. AIG was founded in 1919 by American Cornelius Vander Starr, who established a general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China. AAU's business grew rapidly, and within two years, Starr formed a life insurance operation. By the late 1920s, AAU had expanded throughout China and Southeast Asia, including the Philippines, Indonesia, and Malaysia. In 1926, Starr opened his first office in the United States, the American International Underwriters Corporation (AIU).

Throughout the following decades, AIG continued to expand internationally and domestically, entering Latin American markets and acquiring other insurance companies. In 1967, American International Group, Inc. (AIG) was incorporated as a unifying umbrella organization for most of C.V. Starr's general and life insurance businesses. The company went public in 1969.

In the early 2000s, AIG acquired American General Corporation, a leading domestic life insurance and annuities provider, and entered new markets, including India. However, in 2005, AIG became embroiled in a series of fraud investigations, and its CEO, Hank Greenberg, was ousted amid an accounting scandal. In 2008, AIG faced a financial crisis due to its involvement in the collateralized debt obligation (CDO) market and was bailed out by the U.S. government for $180 billion. AIG survived the financial crisis and, as of 2012, had repaid the government in full, with interest.

In 2014, Peter Hancock succeeded Robert Benmosche as president and CEO of AIG. In 2017, Brian Duperreault was appointed CEO, and in 2021, Peter Zaffino succeeded him. In 2022, AIG's life and retirement business unit was renamed Corebridge Financial and began publicly trading as a separate company on the New York Stock Exchange.

Customer reviews of American General

American General Life Insurance has received a range of reviews from customers, with some praising the company and others expressing disappointment and frustration. Here is a summary of the customer reviews:

Positive Reviews:

• American General has been recognised as one of the top life insurance companies, particularly for its leniency with certain pre-existing health conditions that other providers may not cover.
• The company has a helpful website interface and competitive rates.
• It has received high scores from rating agencies and has a long history in the industry, dating back to 1919.
• American General has never failed to pay a valid life insurance claim in its history, and customers have reported receiving payouts without issues.
• The company offers a range of insurance products, including term life insurance, whole life insurance, universal life insurance, and accidental death and disability insurance.
• Their underwriters are generally less strict than most term life companies, and their rates are among the lowest in the industry.
• They are particularly competitive for death benefits ranging from $100,000 to just under $1 million and offer favourable rates for private pilots.

Negative Reviews:

• Some customers have reported issues with policy cancellations and unexpected premium increases after the initial term.
• There are complaints about dishonest business practices, with the company allegedly trying to raise premiums continuously until the policy is dropped, resulting in customers paying more than the policy amount without receiving any benefits.
• Communication and customer service have been criticised, with reports of being given the run-around, unresponsive agents, and difficulty in resolving issues.
• There are concerns about potential fraud, with one customer reporting a personal loan taken out against their mother's policy without their knowledge.
• Issues with billing and correspondence have also been raised, with a customer reporting policy cancellation due to non-payment despite mailing the bill to an incorrect address.
• Delays in claim processing and lack of transparency have been mentioned, with beneficiaries grieving the loss of loved ones left frustrated by the company's handling of their claims.

American General's range of insurance products

American General, also known as AIG, is a leading global insurance organisation that provides a wide range of property casualty insurance and other financial services. They have been in business since 1919 and are currently headquartered in the US. With over 90 million customers, AIG is one of the world's largest insurance companies.

American General offers a variety of insurance products, including term life insurance, permanent life insurance, accidental death and disability insurance, and business insurance. Their suite of term life insurance products is called "Select-a-Term." They also offer "permanent" life insurance options, including whole life, universal life, and variable universal life insurance.

In addition to life insurance, American General provides a range of annuity products, including multi-year guarantee annuities, fixed indexed annuities, and traditional fixed annuities. They also offer insurance for businesses, such as key person insurance, buy-sell/business succession/business continuation insurance, and business loan coverage.

American General has received high scores from rating agencies and is known for its competitive pricing and online tools. However, it's important to compare their rates and approval guidelines with other companies to ensure customers are getting the best deal.

American General's pricing and affordability

American General, also known as AIG, is one of the world's largest insurance companies, with over 90 million customers. It offers a range of insurance products, including term life insurance, permanent life insurance, accidental death and disability insurance, and various types of business insurance.

Pricing

AIG's term life insurance products are typically the least expensive type of medically underwritten coverage, at least initially, and are simple to understand. These policies do not build up a cash value, and the premiums are fixed for the duration of the term. If the policy is renewed after the initial term, it will be at a much higher cost.

AIG's permanent life insurance products include whole life, universal life, and variable universal life insurance. Whole life insurance provides protection and a guaranteed cash value, with fixed premiums for the duration of the policy. Universal life insurance is a flexible plan that allows the policy owner to adjust the death benefit and/or premium payments within limits. Variable universal life insurance is based on the performance of the financial markets, offering several professionally managed investment options, but the policy owner incurs additional risk.

AIG also offers accidental death and disability (AD&D) insurance, which pays benefits for accidental death, dismemberment, loss of hearing, severe burns, and paralysis. This coverage is more comprehensive than what is typically offered by most competitors. AIG's AD&D policies are renewable for a lifetime, while most competitors' coverage ends at age 80.

Affordability

While AIG offers affordable rates and flexible premium and benefit packages, its plans are generally more expensive than similar plans offered by competing companies. Additionally, AIG has been criticised by some customers for the amount of bureaucracy and red tape required to cancel policies or make changes.

AIG's underwriters are considered less strict than most term life companies, and their rates are among the lowest in the industry. For example, a "Preferred Risk" client with a $250,000 death benefit would pay a monthly cost of approximately $178.54.

AIG also offers flexible term policy lengths, allowing customers to purchase plans for specific durations, such as 11 or 23 years, rather than being limited to increments of five years as is common with other companies.

Overall, while AIG's pricing is competitive and often very affordable, there may be more cost-effective options available with other providers, depending on individual circumstances and requirements. It is always recommended to compare rates and approval guidelines with multiple companies to ensure the best deal.

Frequently asked questions