Bogleheads' Guide To American General Life Insurance: Is It Worth It?

American General Life Insurance, also known as AIG, is a popular choice for many people looking for life insurance. However, there are some mixed reviews about the company. While some people have had positive experiences with the company, there are also several negative reviews outlining issues with customer service, unexpected premium increases, and difficulties cancelling policies. It is always a good idea to do your research and compare rates and reviews before choosing a life insurance company.

AIG's financial stability and history

American International Group, Inc. (AIG) is a multinational finance and insurance corporation with a history dating back to 1919. Over the years, it has grown into one of the world's largest insurance companies, serving 87% of the Fortune Global 500 and 83% of the Forbes 2000.

However, AIG has also faced significant financial challenges and controversies. During the 2007-2008 financial crisis, the company was on the brink of collapse due to its involvement in the sale of collateralized debt obligations (CDOs) and credit default swaps. The U.S. government intervened with a bailout worth about $150 billion to prevent a disorderly failure that could have had catastrophic effects on the global financial markets and the broader economy. AIG's financial situation was so dire that it was deemed "too big to fail."

In the aftermath of the financial crisis, AIG underwent a period of restructuring and repaid its massive debt to U.S. taxpayers. The company has since been removed from the list of institutions that pose a systemic risk, indicating increased financial stability. As of 2022, AIG's life insurance division was renamed Corebridge Financial, which offers a range of term life insurance products and "permanent" life insurance options such as whole life, universal life, and variable universal life insurance.

Despite its turbulent history, AIG has a long track record in the insurance industry and has never failed to pay a valid life insurance claim. Its financial stability and ability to weather crises, such as the 2007-2008 financial crisis, make it a reliable choice for life insurance.

AIG's ability to pay claims

AIG American General has never failed to pay a valid life insurance claim in its history. The company operates separately from its parent company, AIG, which faced a lot of negative press and a government bailout in 2008. However, AIG paid back the government loan a year early in 2013, and less than two years later, Global Finance magazine listed it as a top insurer worldwide in four categories.

The life insurance division of AIG, American General, has a strong financial position and a stable history of paying its claims. This track record, combined with its financial strength and stability, makes it a recommended choice for clients, family, and friends.

American General's ability to pay claims is further supported by the fact that it is one of AIG's most profitable businesses. In the event of bankruptcy, this division would have been sold to another company, ensuring the continued payment of benefits. Additionally, American General has been in business since 1919 and has over 90 million customers, making it one of the world's largest insurance companies.

The company's financial strength is also reflected in its current financial ratings. While specific ratings are not provided, American General is considered to have competitive rates that are among the lowest in the industry. Their underwriters are generally less strict than most term life companies, and they offer a range of coverage options, including term life, whole life, universal life, and variable universal life insurance.

In conclusion, AIG American General has a strong history of paying claims and has the financial stability to continue doing so. Their position as a profitable division of a large insurance company, combined with their competitive rates and coverage options, makes them a reliable choice for individuals seeking life insurance.

AIG's range of insurance products

AIG offers a wide range of insurance products, including property casualty insurance, life insurance, retirement products, mortgage insurance, and other financial services. The company operates through three core businesses: general insurance, life and retirement, and a standalone technology-enabled subsidiary.

General Insurance

General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. AIG's general insurance business provides coverage for a variety of risks, including:

• Aerospace
• Commercial Auto
• General Liability
• Property
• Workers' Compensation
• Dental, Group Life, and Accidental Death and Disability (AD&D)
• Business Life Insurance, including Key Person, Buy Sell/Business Succession/Business Continuation, and Business Loan Insurance

Life & Retirement

The Life and Retirement division includes Group Retirement, Individual Retirement, Life, and Institutional Markets. AIG offers various life insurance products, such as:

• Term Life Insurance: the simplest and typically least expensive type of coverage, with no cash value build-up and fixed premiums and death benefits.
• Whole Life Insurance: provides protection and guarantees cash value build-up, with fixed premiums and the potential for dividends.
• Universal Life Insurance (UL): a flexible plan with interest-sensitive policies that allow adjustments to death benefits and premium payments.
• Variable Universal Life Insurance (VUL): a policy tied to the performance of financial markets, offering several investment options but with higher risk.

AIG also offers retirement products such as annuities and savings plans to help individuals plan for the future.

Technology-Enabled Subsidiary

AIG's standalone technology-enabled subsidiary, Corebridge Financial (formerly known as American General Life Insurance), is a leading provider of life insurance and annuities. Corebridge Financial specializes in serving customers with pre-existing health conditions that other insurers might not cover. They offer both term and permanent life insurance products, with a focus on term life insurance, and have a strong track record of paying out valid claims.

Customer service and claim handling

One common issue raised by customers is the difficulty in reaching anyone in the United States authorised to address their concerns. Customers report that their calls are often routed to overseas representatives who are difficult to understand and offer limited, predetermined responses. The lack of email communication and the requirement to rely solely on snail mail for certain issues further exacerbates the frustration.

In terms of claim handling, there are mixed reviews. On the one hand, AGLI has been praised for its financial stability and history of paying valid claims. The company has a strong financial standing, with assets exceeding liabilities, and it has never failed to pay a valid life insurance claim. This track record has earned it recommendations from industry experts.

However, there are also negative reviews from customers who experienced challenges in getting their claims approved and paid out. Some customers report being made to wait excessively, receiving constant excuses for delays, and being given the run-around by customer service representatives. There are also complaints about unexpected premium increases, especially for older customers, and automatic renewals with significantly higher premiums.

While AGLI has a solid financial foundation and a history of paying claims, the customer service and claim handling experiences shared by some individuals paint a picture of a company that could improve its responsiveness, communication, and transparency.

AIG's reputation and trustworthiness

AIG, or American General, is the life insurance division of American International Group, a multinational finance and insurance corporation with operations in over 80 countries. The company has been in business since 1919 and is headquartered in the US. With over 90 million customers, it is one of the world's largest insurance companies.

In 2008, AIG faced a lot of negative press due to its role in the financial crisis and subsequent government bailout. However, it is important to note that the life insurance division operates separately from other portions of the company, and life insurance is one of the most regulated industries in America. As a result, funds cannot be co-mingled, and AIG repaid the government loan a year early in 2013. By 2015, Global Finance magazine listed AIG as a top insurer worldwide in four categories.

American General has a reputation for being a profitable and stable company within AIG. Even during AIG's financial troubles, American General was never in danger of bankruptcy and would have been sold to another company if necessary. American General has a history of paying out valid life insurance claims and has never failed to do so.

Reviews of American General's life insurance services are mixed. While some customers express satisfaction with the company's rates and coverage, there are also numerous complaints about the company's handling of claims, customer service, and policy changes. Some customers have reported issues with unexpected premium increases, difficulties in cancelling policies, and a lack of transparency.

In summary, while American General has a strong financial reputation and history of paying out claims, there are also concerns about the company's customer service and handling of certain policy-related matters. It is always advisable to carefully review the terms and conditions of any insurance policy and to seek independent advice when necessary.

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