AIG Life Insurance Review 2020 // Go Direct or with an Agent

By Sa El

Updated September 28, 2020

aig logo

Our Verdict

4.0

AIG, has a unique term life insurance product that allows you to choose non­standard term lengths.

For example, you can choose a term of 18 or 19 years instead of the standard 20 year term. You can also customize your policy with a wide range of riders.

This is why I put this AIG Life Insurance Review together, to help you understand if this product is best for you and how it works.

To help you see how easy and affordable they make it for you to apply for life insurance and get covered.  Enjoy!

aig logo

Our Verdict

4.0

AIG, has a unique term life insurance product that allows you to choose non­standard term lengths.

For example, you can choose a term of 18 or 19 years instead of the standard 20 year term. You can also customize your policy with a wide range of riders.

This is why I put this AIG Life Insurance Review together, to help you understand if this product is best for you and how it works.

To help you see how easy and affordable they make it for you to apply for life insurance and get covered.  Enjoy!

Pros

  • Above Average Approval Speed
  • Electronic Application
  • Policy Delivered via Email
  • Good Rates For Diabetics
  • Non-Standard Term Lengths

Cons

  • Amount Of Forms To Fill Out
  • Very Low Levels Of Customer Service

I am a huge advocate of the no medical life insurance option; however, there are some situations where the "no physical exam" option is out of the question and a fully underwritten option is best.

Especially if you have pre-existing conditions such as diabetes, or need more than $1 Million in life insurance.

aig life insurance

The best way to speed the underwriting process up will be to get your exam completed as early as possible so that your results get back to the insurance company faster.

If you need the most affordable rates and are fine with a 2 to 3 week turn around, then getting term life insurance rates and coverage from AIG is the best answer.

Who Is AIG Life Insurance?

American International Group or AIG Life was founded in December of 1919 which makes it 100 years old.

An insurance company's age is essential because it shows that they aren't going anywhere and have longevity.

aig life insurance

Operating in more than over 80 countries, AIG Life Insurance Company has a rating of A (Excellent) from A.M. Best.

THE SIMPLY INSURANCE WAY

Life Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get life insurance coverage within minutes of getting your quotes and applying.

Why Should You Care About A.M. Best?

I like to think of A.M. Best like the JD Power of the insurance industry, they have been around for over 117 years.

They rate companies based mainly on their financial strength, which can be an indicator or claims-paying ability.

Claims Paying Ability "in plain English":   A Life Insurance Company's ability to pay out on a policy.

am best

What Makes Them Different?

What makes AIG Life Insurance Company different is that they are one of the oldest insurance companies and paid back over $182 Billion to the U.S. Government after a bail out in 2008.

Along with being financially sound they have some of the most affordable life insurance rates and very flexible underwriting requirements.

AIG is offering up to $10 Million in life insurance coverage with a short online application and flexible term life options.

As we stated above they do have a much faster application approval process and they also have the AIG Direct Product.

INSURANCE WHERE YOU LIVE

Life insurance by state.

What Is AIG Direct Life Insurance?

AIG wanted to create a solution that allowed their customers to purchase life insurance directly from them.

This product became known as AIG Direct.

aig direct life insurance

The products still work the same and the primary difference is that AIG Direct allows you to apply for life insurance directly online and uses a call center instead of independent agents.

Other AIG products are usually sold through life insurance agents. 

The policy options you have through AIG Direct Insurance are exactly the same products offered by insurance agents.

This means the only difference between AIG and AIG Direct is that you get to choose if you want to work with an agent or not.

AIG is with an Agent and AIG Direct is without an agent. 

While agents can meet with you in person if they are local and help answer more questions, there isn't a price difference in quotes with AIG Direct or with an AIG agent so the choice is 100% up to you.

How Does AIG Life Insurance Work?

AIG is focused on affordable life insurance rates with solid underwriting for people that are generally in good health.

Their life insurance process works like this:

Electronic Application

The application process is electronic, simple and short, it will usually take less than 5 to 10 minutes to complete all the information and submit your application.

Fast Underwriting

The AIG underwriting process is a bit faster than most insurance companies.

Once you complete the electronic application you can have your approval usually within 1 week or less. 

Policy Delivered Via Email

Once your policy has been approved and issued you will receive a copy of it directly to your email address. 

This is great because you don't have to remember where you left your policy and will always have easy access to it. 

What Does AIG Life Insurance Cover?

AIG life offers a few different policy options for you to choose from.

Each policy comes with coverage options from $100,000 up to $10,000,000.

10 Year Term Life Insurance Policy

The ten year term life option is going to cover you for 10 years before it's time to purchase a new policy.

This policy is going to be the most affordable option with low-range pricing and will be best for people who are looking at both their  short term and long term needs.

The amount of life events that can happen in 10 years is massive and being prepared for them is very important.

A 10 year term is a great starting point and locking your low rates in is going to be essential.

15 Year Term Life Policy

The fifteen year term life option is going to cover you for 15 years before you have to purchase a new policy.

This policy is going to be the second most affordable and be best for people who are in the middle of life events like having a baby or switching jobs.

20 Year Term Life Insurance Policy

The twenty year term life policy will be the second most expensive of the 4; however, it will still be very affordable.

This term length is going to be best for someone focused very much so on their future and want to be covered for the most extended period of time with the maximum amount of savings.

The longer a term length a policy has, the more expensive it will be up-front; however, the more savings you will get over time.

If you know what you want and can afford the twenty year term option, then I would suggest you go with the 20 year term option.

30 Year Term Life Insurance Policy

The thirty year term life policy will be the most expensive of the 4; however, it will still be affordable.

This term length is going to be best for someone focused on their future and want to be covered for the most extended period of time with the maximum amount of savings.

The longer a term length a policy has, the more expensive it will be up-front; however, the more savings you will get over time.

If you know what you want and can afford the thirty year term option, then I would suggest you go with it.

It's a really good option if you just purchased a home.

Term Lengths In-between

AIG, unlike most insurance companies has a product that allows you to actually choose a specific term length between 15 and 30 years.

Essentially, you can have a 16 year term policy.

All Cause Death Benefit

All of these policies will pay out for all types of death from accidental death, terminal illness, critical illness or chronic illness.

With all insurance policies, there are some limitations so be sure to read the policy for things that aren't covered.

THE SIMPLY INSURANCE WAY

Life Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get life insurance coverage within minutes of getting your quotes and applying.

AIG Select Your Own Term

Unlike any other life insurance company out there, AIG offers its customers the ability to choose their own term length.

You can choose any length between 15 and 30 years.

aig life insurance review

This is amazing because it allows you to really tailor your life insurance options to your current and future life insurance needs. 

This coverage is great for working moms or business owners and even protection after retirement.

You have the option to choose a 17 year term or even a 23 year term, whatever option works best for you and your family.

This option doesn't exist with any other insurance company.

Most companies only offer 10, 15, 20 and 30 year options.

AIG Life Insurance Products

One of their primary products is their OPTerm Life product which we detail below:

Select-A-Term

The Select-A-Term product has very competitive underwriting for a range of health conditions as well as customizable terms between 15-35 years which we discussed above..

They offer a no medical exam option for ages 20-59 and face amounts between $50,000 - $99,999. 

This is well below the average range of $500,000 for most companies however.

You can also convert this policy into a whole life policy by following the below guidelines:

The policy is convertible until the earlier of the end of the term or to age 70

Some of the optional riders available are:

Child Protection Rider - Provides life insurance coverage for all eligible children from 15 days to 19 years old.

Waiver Of Premium Rider - If you become totally disabled as a result of a qualifying event, premiums are waived (after a 6 month waiting period). Rider ends at age 65.

Accelerated Death Benefit Rider - You can accelerate up to 50% of the death benefit (up to a max of $250,000) if you've been diagnosed with a qualifying terminal illness.

Accidental Death Benefit Rider - Pays an additional death benefit on top of the policy’s death benefit if the death resulted from qualifying accidental injuries.

It might be more affordable to purchase a separate accidental death insurance policy.

ROP Select-A-Term

The ROP Select-A-Term product functions exactly like the same as the select-a-term product with one exception.

If you live past the term all of your premiums you paid into the policy will be paid back to you in a lump sum payment.

Think of it as a savings account with free life insurance.

INSURANCE WHERE YOU LIVE

Life insurance by state.

AIG Life Rates & Comparisons

Just to give you an idea, below I wanted to compare AIG life rates with a few of the best life insurance companies.

A 20 Year, 500,000 Term Policy for a 30 year old male in perfect health and a non-tobacco user, see the results below:

Company Name

Plan Name

$500,000 Quote

protective life logo

Classic Choice Term

$20.21/month

pacific life logo

Pacific PROMISE Term

$20.84/month

lincoln financial logo

TermAccel

$21.00/month

aig logo

Select-A-Term

$21.11/month

sbli logo

Level Premium Term

$21.32/month

banner life logo

OPTerm

$21.44/month

mutual of omaha logo

Term Life Answers

$21.66/month

haven life logo large

Haven Term

$22.48/month

bestow life insurance logo

Bestow No Exam Term

$26.25/month

As you can see, AIG's rates are more affordable than most insurance companies.

If you want the lowest price and best value then the Select-A-Term product is your best option.

How AIG's Claims Process Works

AIG allows you to download their claims package(Pdf) from their website.

You can also call them directly at 800-888-2452.

Their claims process seems to be very easy, once you submit the claim they will start the initial claims process.

Are There Any Claim Exclusions

There are a few exclusions when paying out on a life insurance claim.

The exclusions include death from suicide (within the first 2 years of coverage), which is standard for almost all life insurance policies.

As always, please read the policy specifics when it arrives in the mail; however, those are some general exclusions which is industry standard for most policies.

AIG's Availability & Policy Options

To qualify for the AIG Term life insurance policy, you must:

  • Be a U.S. citizen or Permanent Resident between the ages of  20 - 80
  • Looking For Flexible Term Options Above 10 Years
  • Need Between $100,000 to $10,000,000 in coverage
  • AIG Life is available in all states

THE SIMPLY INSURANCE WAY

Life Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. But, we are here if you need us. 

Unbiased, expert advice.

Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get life insurance coverage within minutes of getting your quotes and applying.

How To Take Action

No other AIG Life Insurance Reviews are as long as mine; however, I wanted to make sure that I gave as much detail as possible.

If you have been holding off on buying life insurance for any reason,  I say give the 30-day free look period a shot.

With their faster than usual underwriting process, you no longer have to be afraid of the life insurance buying process.

And guess what, if you don't qualify for the accelerated underwriting process that is perfectly fine, you will still be able to get the lowest rates when you complete an exam.

Just click on the link below to get started.


Sa El

About the author

Sa El is the Co-Founder of Simply Insurance and a licensed Insurance Agent with over 11 years of experience in the industry.  He specializes in Life & Health Insurance and is certified in Long Term Care Insurance in the state of Georgia. He is also an Official Member of the Forbes Finance Council, a licensed real estate agent in the state of Georgia (License #382602), an entrepreneur, insurance educator, and freelance writer.

Sa El

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