AIG Life Insurance Review: Customizable Term Coverage From a Top Insurer

This life insurer is a good fit for: Consumers looking for term, universal, or whole life insurance tailored to their needs.

AIG life insurance at a glance

• Average costs: Standardized scenario $39.89/month for 35-year-old male non-smoker with a 20-year term; $67.57/month for 35-year-old male non-smoker with a 30-year term
• Term life policy limits: Up to $10 million
• Whole life policy limits: Up to $25,000 for guaranteed issue whole life coverage
• Riders/Add-ons: Accidental death benefit, child rider, terminal illness rider, waiver of premium rider
• Eligibility: Age 70 or below for term life; age 80 or below for whole life
• Discounts available: N/A
• Other insurances offered: Travel; personal accidental and health

Top perks

Multiple coverage types

American International Group (AIG) offers a choice between term life, universal life, and guaranteed issue whole life insurance. This means almost every life insurance shopper can find a policy they are looking for. Many of AIG's term life policies can also be converted to permanent insurance. Some competitors, such as Bestow, provide only term life, so consumers won't have as wide a range of options -- or the ability to change to permanent coverage if their needs evolve.

Many choices of term lengths

AIG offers a choice of 18 different term durations for term life insurance coverage. With so many choices, consumers can make sure they get protection only for as long as they need it. No insurance buyer will have to settle for a term length that doesn't work for them.

Personalized help getting coverage

AIG Direct makes it easy to obtain quotes online or to get help from a professional agent who can offer advice on life insurance needs. Online quotes are free and personalized and AIG Direct Sales support is available via phone Monday through Saturday for those in need of extra assistance. Some competitors don't offer as much support, leaving customers to make important decisions independently. Others require contacting an agent to obtain pricing. AIG gives consumers a choice of how to explore coverage options.

What could be improved

Better customer service

AIG ranks poorly for customer service. According to J.D. Power's 2021 U.S. Individual Life Insurance Company, the industry average overall customer satisfaction rating is 776. AIG receives a rating of 729. By contrast, the highest-ranked insurer, State Farm, had a rating of 822.

AIG is the second-lowest insurer on J.D. Power's list, only scoring above Brighthouse Financial in terms of customer rankings.

More options for no-medical-exam coverage

AIG offers guaranteed issue whole life policies with between $5,000 and $25,000 of coverage that do not require a medical exam. But most other options, including term and whole life plans, require applicants to undergo a screening by a health professional. Some competitors such as Bestow offer term-life coverage to qualified applicants without this additional hurdle.

More policy types

AIG does not offer other common types of insurance, such as home or auto coverage. Consumers who want to buy all or most of their insurance from the same company will find they cannot do so if they get life insurance through AIG. With few types of policies available, earning loyalty discounts for bundling coverage won't be possible.

AIG is priced competitively, especially for a healthy person with no serious pre-existing medical conditions. However, there are other insurers that charge lower monthly premiums. The table below shows how much a healthy 35-year-old male would pay for either 20 years or 30 years of coverage.

If you want a life insurer who offers top-notch customer service: State Farm is the better bet. The insurer came in first on the J.D. Power Survey while AIG beat just one competitor. But keep in mind that State Farm offers far fewer options for term life coverage, with your choices limited to 10-, 20-, or 30-year terms rather than the 18 different options AIG offers.

Term life insurance

AIG provides a choice of 18 different term lengths for this type of coverage. This feature, called Select-a-Term, allows policyholders to get covered for 10 years, between 15 and 30 years, or 35 years. Policyholders also have the ability to convert a term to a permanent life policy at the end of the level premium period or upon reaching age 70, whichever comes first.

Universal life

AIG provides three different kinds of Universal Life Insurance coverage including:

• Indeed universal
• Guaranteed universal
• Variable universal

Each provides permanent insurance and the policies accrue a cash value that can be borrowed against or otherwise used to help support covered policyholders. Like all universal life insurance policies, the insurance remains in effect for the duration of the policyholder's life unless the insurance is canceled or the policyholder stops paying premiums.

Guaranteed issue whole life

This provides an option to get covered with no medical exam. Between $5,000 and $25,000 coverage is available, and applicants between the ages of 50 and 80 are guaranteed eligibility. Premiums are fixed and budget-friendly.

Accidental death benefit rider

This rider entitles beneficiaries to a larger death benefit in the event that the policyholder died as a result of certain types of accidents. This rider can be purchased only when the policy is issued.

Child rider

This add on makes it easy to get life insurance coverage for a child. If the policyholder opts in, the child rider would pay a death benefit to insured parents if the child passed away. It is available to children between the ages of 15 months and 19 years old, and all dependent children can obtain coverage with one rider. This rider can be added at any time, even after the policy is issued.

Terminal illness rider

With this rider, policyholders become entitled to an accelerated death benefit. When a policyholder is diagnosed with a terminal illness that will result in less than 24 months to live, this benefit becomes accessible.

Waiver of premium rider

If the policyholder is considered totally disabled at least six months after getting covered, the waiver of premium rider kicks in. This allows for the policyholder to keep coverage active without continuing to pay premiums. This rider is an option only for policies with a face value between $100,000 and $5 million.

AIG provides consumers the ability to purchase life insurance coverage without the help of an agent using AIG Direct. A customer can obtain a quote online after providing information on both health and lifestyle, including answering questions about any family cancer history as well as high-risk habits, such as nicotine or drug use.

Eligibility requirements vary by coverage type. For example, term life policies can be purchased up until age 70. Guaranteed issue whole life coverage, on the other hand, is available for individuals between ages 50 and 80.

AIG ranks poorly in terms of customer service. It was second-to-last on J.D. Power's 2021 U.S. Individual Life Insurance Study. AIG also received more complaints than comparably-sized insurers in the NAIC database. Unfortunately, this means consumers who prioritize top-notch service may find other competitors to be a better fit.

AIG Life Insurance is best suited for people who:

• Want the most flexibility in their coverage term
• Are looking for an affordable insurer
• Want a choice of term or universal life policies with many optional riders

But you may want to consider Bestow if you'd prefer to get a large amount of term life coverage with no medical exam or State Farm if you prioritize customer service over the broadest choice of coverage terms.