Review of AIG American General Life Insurance
If you are looking for American General Life Insurance Company [AGLA] or AIG reviews than you are in the right place. In the following article we will cover the pros, cons, and recommendations when considering American General as your life insurance provider. With access to dozens top rated companies we can help direct you to the most appropriate company based on your unique need, health and lifestyle.
American General Life, owned by American International Group (AIG.com) is a top rated company in 2018 and currently in both our top ten best life insurance companies in the United States list and most affordable life insurance companies list.
The video below will explain the importance of having options when shopping for the best life insurance quotes.
About American General Life Insurance Company
The company’s history dates back to 1919 when it began as a general insurance company in Shanghai, China. in 1926, AIG, then called American International Underwriters, opened its first U.S. office in New York. and finally, in 2001, AIG acquired American General Corporation.
American General Life Insurance Company and The United States Life Insurance Company in the City of New York are part of American International Group, better known as AIG. AIG Life Insurance has done an excellent job of rebuilding the company’s image, which took a huge hit about 9 years ago. This resurgence can be seen specifically in the company’s strong financial ratings.
American General Life Insurance Company’s Ratings
Any good review of American General Life Insurance Company will need to address the company’s strong ratings. As of March 2, 2015, A.M. Best Company gives AIG Life Insurance an A, excellent rating. Standard and Poor’s gives AIG Life Insurance an “A+” rating. Either way you cut it, American General Life Insurance is on solid financial footing.
- A.M. Best rating: A, excellent
- Standard and Poor’s rating: A+
- Fitch’s rating: A+
- Moody’s rating: A2
- Comdex rating: 81
American General Life Lab Scoring
American General Life is rather unique in that it uses a lab scoring methodology in conjunction with common industry underwriting practices to determine preferred rate classes for Term applications, and overall acceptability. Potential insured’s with favorable lab scoring results, in addition to the Company’s established preferred criteria, are eligible to receive AG’s best offers.
Lab scoring can cut both ways. For example, a person who has preferred plus blood and urine work, but who pops for some negative on the lab scoring, will lose his or her preferred plus rate class. Alternatively, a person who is on the border between rate classes can actually see his or her rate class improve with a positive lab score.
Pros of Choosing AIG for Life Insurance
There are many pros to choosing AIG life insurance, underwritten by American General.
Products offered by American General Life Insurance Company
American General Life is unique in that the company offers level term life insurance for 10, 15, 16, 17, etc…all the way to 30 years for the Select-A-Term product.
Term Life is an excellent choice for those who need coverage for a set number of years. For example, you can choose a term that coincides to a SBA loan or divorce settlement where you only need the coverage for a specific period of time.
In addition, AG offers convertible term life insurance which allows you to convert all or a portion of your policy to permanent coverage. The benefit of a conversion option is if you are diagnosed with a health ailment that may keep you from getting life insurance you can always convert your policy and keep it the rest of your life. Also, you may find that it just makes sense to keep your coverage, so rather than buy more term that will one day expire, you simply convert your policy at the health rate class you originally qualified for.
AG ROP Select-A-Term:
The Company also offers return of premium term life insurance so that you can recoup all your premiums tax free upon the end of the term.
AG Secure Lifetime GUL 3:
Competitively priced guaranteed universal life that builds cash value and provides valuable estate planning protection.
Guaranteed Universal Life is an excellent estate planning tool or business succession tool. Consider guaranteed universal life if you are more concerned about a death benefit and do not need high cash value growth.
AG Secure Survivor GUL II:
Survivorship universal life insurance coverage that covers two lives and pays out upon the survivor’s death. Available for ages 50-75. It is also a solid choice for family business owners succession planning or funding an irrevocable life insurance trust.
Survivorship life insurance is not for protecting your spouse but is focused on leaving money to a beneficiary, whether it be a child or a charity.
Elite Index II and Survivor Index II:
Similar to the GUL products above, AIG’s Index Universal Life Insurance offers flexibility with three interest crediting accounts to choose from.
Elite Index II offers a guaranteed minimum floor on the fixed account of 2% and .25% for the indexed accounts. There is also a maximum amount you can gain, which is based on the cap rate and the participation rate declared by the company.
Another option with the Elite Index II product is choice loans, which provides that if you take out a life insurance loan, your cash value in an indexed account will continue to participate in the index. That way you continue to earn interest crediting on your cash value, even with an outstanding policy loan.
Accelerated Access Solution
Elite Index II also offers a chronic illness benefit that allows you to receive a protion of the death benefit as a monthly income stream.
AG Platinum Choice VUL:
Variable universal life insurance allows the owner to invest the policy accumulation value into variable accounts. Unlike IULs, a VUL directly invests in the market through different account options, similar to mutual funds. And unlike IULs, there are no guarantee floors or caps so you potentially have unlimited gains and losses.
Guaranteed Issue Whole Life Insurance:
Guaranteed issue life insurance provides coverage for those who have a pre-existing high risk condition. Available for ages 50-85. The policy comes with a 2 year graded death benefit and a $25,000 maximum coverage amount.
Life Insurance Riders
AIG offers several life insurance riders including:
- Conversion option the lesser of age 70 or when term ends
- Accelerated Death Benefit Rider
- Waiver of Premium Rider
- Disability Income Rider
- Child Term Rider
- Accidental Death Rider
Additional AIG Life Insurance GUL Riders
- Accelerated Access Solution: allows income-tax-free access to death benefits if diagnosed with a chronic illness.
- Lifestyle Income Solution: allows access to your death benefit for any reason after age 85.
- Quality of Life Riders: Terminal Illness living benefit riders & Critical Illness Insurance
Liberal Underwriting for High Risk
As you may have read in other American General Life Insurance Company Reviews, AG is an excellent company for people who are considered high risk for life insurance.
AG’s liberal underwriting criteria for various health problems puts this company close to the top of the of the list for many of today’s top ailments, such as diabetes, heart disease, and sleep apnea. As well as lifestyle conditions, such as medical and recreational marijuana use.
American General Life Insurance Company’s rates are extremely competitive, often ranking in the top 3 spots for 20 to 30 year term life insurance rates for males and females. Further, American General’s table rating for impaired risk clients is awesome, often beating the majority of the competition.
Sample American General Term Life Insurance Quotes
Sample AIG Select-A-Term life insurance quotes based on a 40 year old male at a preferred plus rate as of September 2017. Rates subject to change and must be qualified for.
|Face Amount||10 Year||20 Year||30 Year|
Sample AIG Select-A-Term life insurance quotes based on a 40 year old female at a preferred plus rate as of September 2017. Rates subject to change and must be qualified for.
|Face Amount||10 Year||20 Year||30 Year|
AIG Disability Income Insurance
AIG is one of the largest disability insurance companies for employer funded group short term and long term plans.
Short term disability insurance is a great option provides short term income replacement due to a sickness or injury. The short term income replacement allows you to pay your bills, including additional medical bill and deductibles due to treatment of the injury or sickness. This is a great alternative to tapping into your emergency fund or simply not paying your bills and risking possible bankruptcy.
Long term disability insurance provides a monthly income benefit based on a percentage of your income after your elimination period ends. Benefits also include rehabilitation help and workplace modifications. There are even survivor benefits which pay your income benefit to your beneficiary if you die during the benefit period.
For more reading, please check out our guide to disability insurance.
Cons of American General Life
In the following section of this American General Life Insurance Company review we will cover the cons to choosing American General as your life insurance provider.
American General comes up short in providing a competitive no medical exam policy. AIG Direct or Matrix Direct offers accidental death and dismemberment for those looking for coverage immediately, but an ADD policy does not cover natural death and there are many exclusions on what type of “accident” is actually covered.
Exam versus No Exam: We often recommend our clients choose a carrier with a no exam policy option because there are certain risks inherent in a fully underwritten policy. Risks such as finding out you have high blood pressure, cholesterol, blood sugar, etc…
For this reason we encourage clients who have not had a medical checkup in a few years to first get a no exam policy. Once that policy is in force, then pursuing an exam policy makes sense. However, if it turns out there is a health issue, at least coverage is in place!
AG Life is but One of Many
As with any company, American General Life Insurance simply cannot meet the need of every client. When you apply for coverage with AIG Life Insurance Company, you are choosing to go with one company.
Potential clients need to be careful that they’re not working with a “captive” life insurance agent, one who may be bound to place clients with AG even when it may not be the best in the clients best interest.
We at TermLife2Go have a recommendation for anyone considering a life insurance policy from American General. Give us a call and let us see if American General Life is the best company with the best price for your insurance needs.
If they happen to be the best offer, we will let you know. We love American General Life Insurance and write a lot of AG policies.
However, with dozens of top rated life insurance companies to choose from, you might save thousands of dollars over the life of your policy by going with another provider.
We do not favor one life insurance company over another. Instead, we find out what you need and then we recommend the lowest priced, best life insurance company to meet your specific need. This is how we help our clients secure the best life insurance rates. Therefore, if price matters to you, give us a chance to earn your business. We are here to serve you!
So, what are you waiting for? Give us a call today to see what we can do for you!
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