AIG Life Insurance Company Review 2018

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American International Group, Inc. (also known as AIG) is one of the biggest insurers in the world, with over 56,000 employees, $76 billion in shareholder equity, and number 49 on the 2016 Fortune 500 list. However, these stats should never be the sole reason you want to buy life insurance from AIG.

We proudly represent AIG life insurance products and wanted to share our opinion about the products, services, underwriting, and rates by AIG. We will review all products offered by AIG and compare them against the best in the industry. Let’s dive in.

AIG History

AIG was founded in 1919 in in Shanghai, China by Cornelius Vander Starr, an American who established the general insurance agency, then called American Asiatic Underwriters (AAU). Business was booming, and so a few years later he formed a life insurance operation. By the late 1920s, he expanded into the Philippines, Indonesia, and Malaysia. By 1926, he had his first office in the United States. AIG’s corporate office is currently in New York City.

AIG Life Insurance Ratings

Financial ratings of an insurance company only show that the company is financially stable to pay your claim. It’s a good start, but don’t think of it as the end-all-be-all, because it has absolutely nothing to do with how good their products or services are.

  • Standard & Poor’s – A+ (strong)
  • Moody’s – A2 (good)
  • A.M Best – A (excellent)
  • Fitch – A+ (strong)

What Life Insurance Products does AIG Offer?

AIG offers an array of life insurance products, from term, whole, and accident, to more specialty products like universal life.

AIG Term Life Products Review

Term life insurance is the most economical life insurance product and the simplest to understand. Your premium is determined by the face amount (death benefit) and the contract term (length), which is typically between 1-30 years, with 20-year the most common term.

If you buy a 30-year policy and die within the 30-year period, your beneficiaries will collect the benefit. At the end of the term you can convert the policy to whole life or drop it. It’s mostly favored by younger individuals with above-average health. Let’s find out how AIG’s term life stands out from the competition.


AIG’s motto is that one size doesn’t always fit all. While most insurance companies on the market offer term life contracts between 1-30 years in increment of 5 (for instance 10, 15, 20, 25), AIG offers a higher level of flexibility and increment choices.

Select-a-Term offers a 10-year term period, and then 15 to 35 years. The increment term periods between 15 and 30 years are to your choosing. So, you could buy a 17-year or 19-year term instead of just buying a 20-year.

Why would someone want to buy a 16-year policy? Well, they may be planning to retire in 16 years and have a pension coming in, so they wouldn’t need a policy after that point, or perhaps their mortgage would be paid off at that time. The good news is that you can buy a term policy based on the length you need, instead of settling on what the market has to offer.

Like most term policies sold today, AIG offers a convertibility option. This means you can convert your policy to a whole life one at the end of your term, or at age 70 (whichever comes first) without evidence of insurability (going through underwriting again). Instead, you will get the same table rating as when you first bought the policy. If you choose not do do so, the policy will renew on an annual basis at the end of your term (which will be extremely expensive), and will expire at age 95.

Select-a-Term Highlights

  • Issue ages: 20-80
  • Minimum death benefit: $50,000
  • Term length: up to 35 years
  • Term: 15-30, including all years in between
  • Convertibility option: before age 70 or the end of the term, without evidence of insurability
  • Terminal illness rider: included, paid as either $250,000 or 50% of the face amount (whichever is less)
  • Policy expires: at age 95

AG Ultra One

This is a one-year term insurance that offers short-term coverage for up to one year. There is no renewability or convertibility option to this policy. It is mostly geared for a key person in a business who needs life insurance for a specific term because of a planned transition or short-term business loan, when the leader may need a life policy as a collateral for the loan. It’s isn’t a good option if you are trying to protect your family, since you would most likely need more than a year of coverage (most need 20-30 years or more).

AG Ultra One Highlights

  • Issue ages: 20-85
  • Minimum death benefit: $100,000
  • Term length: one-year life policy
  • Renewability option: non-renewable
  • Convertibility option: non-convertible
  • Riders: there are no available riders

Term Life Available Riders

  • Terminal illness: provided at no additional cost
  • Accidental Death Benefit: optional
  • Children’s: optional
  • Waiver of Premium: optional

Related: I wrote an extensive post about life insurance riders that further explains what they are and who needs them.

AIG Guaranteed Universal Life Review

Guaranteed Universal Life (also called GUL) is a policy which lets you choose your coverage based on a specific age, rather than a length like with term insurance. So instead of buying a 20-year term, you could actually buy a policy which offers a guaranteed face amount of your choice, up to age 90, 95, or 121 years old.

Secure Lifetime GUL 3

Like every other guaranteed universal life policy on the market, AIG offers the same benefits: a guaranteed death benefit, flexibility, and selection of the years or chosen age (90, 95, 110, 121). However, there are two benefits that make AIG the best policy at the time of the article.

First, it has a return of premium already built into the policy: an Enhanced Surrender Value rider. If, for instance, you no longer need the policy, you can recoup some of the paid premiums: after 20 years – 50%, or after 25 years -100%.

The other benefit is a lifestyle income solution which can be a stream of income beginning at age 85. It enables you to withdraw supplemental income to use for any purpose. The payments are generally tax-free, and the remaining balance will be paid to your beneficiaries. You actually don’t have to die to use your policy!

Secure Lifetime GUL 3 Highlights

  • Issue ages: 18-80
  • Minimum death benefit: $100,000
  • Guaranteed death benefit
  • Term length: flexible years from which to choose
  • Return of Premium: 50% in year 20, or 100% in year 25
  • Retirement supplement income
  • Guaranteed interest rate: 2.00 percent all years

AG Secure Survivor GUL 2

This is a survivorship life policy which pays benefits to the beneficiaries after both spouses are gone. This policy is part of estate planning. Once both spouses are gone, the property which they owned will have an estate tax which would be your beneficiaries’ responsibility, unless of course the proceeds (death benefit) from the life insurance policy can cover that. With AIG, the death benefits are guaranteed, with an option to surrender the policy after 15 years and receive back 100% of paid premiums.

Secure Lifetime GUL 2 Highlights

  • Issue ages: 20-90
  • Minimum death benefit: $100,000
  • Guaranteed death benefit
  • Enhance surrender value: end of policy year 15
  • Term length: flexible years from which to choose
  • Guaranteed interest rate: 2.00 percent all years

Guaranteed Universal Life Available Riders

  • Accidental Death benefit
  • Children’s
  • Return of premium
  • Terminal Illness
  • Waiver of Premium
  • Spouse / Other Insured term
  • Income solution
  • Enhance surrender value: end of policy year 15
  • Four-year term rider which adds an additional 125 percent to the original death benefit
  • Option to extend coverage beyond the original maturity date

AIG Index Universal Life Review

Universal life insurance offers greater flexibility with regards to the cash benefit and face amount, and tax-deferred growth potential when it comes to premiums. Index UL allows the policy owner to allocate a portion of paid premiums to an index account, like the S&P 500, or a fixed account that has a fixed interest rate.

UL offers a tax-free death benefit to your heirs, however, since this is considered a whole life policy, it also provides you as the policy owner with an opportunity to supplement your income in the future, or use your cash benefit in your policy as you wish.

Max Accumulator +

AIG’s Max Accumulator policy offers protection against the market downturn by providing a minimum guaranteed interest rate (based on a few account options in the policy). Also, UL isn’t an investment and the money isn’t invested directly in an index. Think of it this way – when the market goes up, you receive interest credit to your account, if it goes down, you don’t. AIG calls it “upside potential with downside protection.” With AIG, you have four accounts to choose from based on your risk level and goals.

Max Accumulator + Highlights

  • Issue ages: 18-80
  • Minimum death benefit: $50,000
  • Guaranteed death benefit
  • 4 index interest accounts from which to choose

Value+ Protector

This UL policy combines a few of the advantages that Guaranteed Universal Life has, with strategies from UL to reduce costs and increase interest crediting. The guaranteed protection continues all the way to age 100. After this, if you are still alive, the policy continues on a non-guaranteed basis for the remainder of your life. Value+ Protector allows the policy owner to access cash value in the policy without reducing the original death benefit bought.

Value+ Protector + Highlights

  • Issue ages: 18-80
  • Minimum death benefit: $50,000
  • Liquidity features
  • Excess Funding feature

Index Universal Life Available Riders

  • Income for life
  • Select income
  • Accelerated access solution
  • Accidental Death benefit
  • Overloan protection
  • Spouse / Other Insured term
  • Terminal illness
  • Waiver of Premium
  • Disability
  • Cash Access If Strong Index Performance feature
  • Cash Access Excess Funding feature
  • Accelerated Access Solution (chronic illness)
  • Lifestyle Income Solution
  • Premium Protection

AIG Variable Universal Life Review

Variable Universal Life (VUL) is another example of whole life, but with an investment component feature. This life policy is more risky that the typical whole life policy because it is invested directly in the stock market. It provides a wealth accumulation potential through tax-deferred strategy.

AG Platinum Choice VUL 2

This policy provides the highest potential for cash growth through investment strategies and flexibility choices ,such as transferring money between investment accounts, a lapse protection rider, and choices of premiums. It is geared for wealthier type of clients who are looking to have an investment component as part of their portfolio.

AG Platinum Choice VUL 2 Highlights

  • Issue ages: 18-80
  • Minimum death benefit: $100,000
  • Account Value Enhancement

Available Riders

  • Lapse protection benefit
  • 20-year benefit
  • Accelerated Access Solution (chronic illness)
  • Accidental Death benefit
  • Waiver of Premium
  • Disability
  • Children’s
  • Terminal illness
  • Spouse / Other Insured term
  • Select income

AIG’s Underwriting Strengths

life insurance underwriting strengths

Just like every other life insurance company out there, AIG has its own way of underwriting a potential client. AIG uses a scoring system that originally was developed for clinical uses. The theory is that this system can pull all kinds of scores (such as blood work, age, and gender) and use an algorithm to find out if the disease is progressing or a treatment is working or not.

The good news is that AIG uses this “smart score” in its crediting system, which allows an individual who is overweight and would otherwise get a standard rate to instead get a preferred rate if his/her score is high. Also note that extremely abnormal lab results are declined, so this could go both ways.

AIG vs Other Carriers’ Sample Monthly Rates

sample rates

Male 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 Principal $14.66 $19.03 $42.61 $110.03
 SBLI $14.79 $21.67 $51.68 $147.70
 Transamerica $20.34 $26.45 $51.17 $135.88
 Prudential $20.34 $24.50 $45.50 $128.84

Female 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 Principal $13.13 $16.63 $32.90 $77.92
 SBLI $13.31 $18.99 $36.46 $90.37
 Transamerica $13.98 $21.72 $40.64 $110.51
 Prudential $17.28 $22.53 $40.03 $89.25

Male 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 Principal $22.75 $31.50 $78.66 $213.50
 SBLI $21.32 $36.92 $96.06 $286.85
 Transamerica $23.65 $43.00 $95.46 $253.70
 Prudential $33.25 $41.56 $83.56 $250.25

Female 20-year Term $500,000

CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Foresters $18.81 $27.13 $57.75 $165.81
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 SBLI $19.14 $29.67 $65.87 $173.03
 Transamerica $19.78 $34.83 $73.10 $204.68
 Prudential $27.13 $37.63 $72.63 $171.06

Male 20-year Term $1,000,000

CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 SBLI $35.24 $56.03 $147.73 $457.62
 Transamerica $39.56 $80.84 $178.02 $483.32
 Prudential $48.56 $70.44 $157.94 $467.69

Female 20-year Term $1,000,000

CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 SBLI $29.67 $44.28 $104.57 $272.92
 Transamerica $32.68 $65.36 $139.32 $388.72
 Prudential $37.19 $59.94 $124.69 $319.81

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Feb 2018 and are subject to underwriting approval.*

Last Word

You really can’t go wrong by applying with AIG. They are usually in the top 3 companies price-wise.  However, always remember that AIG is just one of many companies to choose from, and it’s in your best interest to compare all the rates before choosing what you think might be the best.

Choosing the best life insurance company is rarely about who has the lowest displayed rate, but rather which company will issue you a policy in the lowest possible rate based on your health conditions. You can go ahead and run the rates yourself on this page or give us a call at 866-326-3053 for a personalized quote.

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2018-03-15T20:17:31+00:00 March 13th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has 2 amazing rescued pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.

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