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AIG American General Life Insurance Company Review

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Reviewed By: Rob Pinner

Rob Pinner Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

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We rate American General as a solid company with high ratings and ease of doing business.  Term life insurance rates from American General are very competitive.  They have an excellent indexed universal life insurance policy and a guaranteed universal life insurance policy that offers critical illness benefits.

 AIG American General is rated A+ with A.M. Best

American General Life Insurance is owned by American International Group, or AIG.  This insurance company is currently ranked as one of the leading and most affordable insurance providers.

History of American General Life Insurance

Dating back to 1919, AIG got its start as a general insurance company in China.  Seven years later, AIG, at that time called American International Underwriters, opened its first American office in New York.  Finally, AIG went on to gain American General Corporation in 2001.

Presently, The The United States Life Insurance Company in the City of New York and American General Life Insurance are both part of American International Group, or as it is commonly referred to, AIG. 

American General Life Insurance Ratings

Either way you look at it, American General Life is in a solid financial standing.  As of March 2015, the leading insurance rating agencies, such as A.M. Best, S&P, Fitch, and Moody, have all awarded AIG with an excellent rating of A+. 

life insurance medical exam

Purchasing life insurance is an important decision that strongly affects the financial security of your family and loved ones.  A life insurance company’s financial ratings greatly help in the decision-making process by providing the consumer with an overview of how financially sound that company is.

Lab Scoring with American General Life Insurance

Lab Scoring is a different underwriting techniques used by American General Life in combination with standard insurance underwriting practices.  This helps to best determine the preferred rate classes of term life applicants.  AIG’s can offer better rate classes to those with favorable lab scores and that have met the preferred criteria of the company. 

This proprietary lab scoring and life insurance medical exam used by AIG allows the company to be significantly more competitive. Other life insurance companies have similar underwriting methods and can also cover most applicants up to $1,000,000 with no medical exam.

It helps to know a few tips to help you pass your medical exam:

  • Drink Plenty of water
  • Get a good nights rest
  • Take your exam first thing in the morning
  • Fast before your exam

AIG American General Life Products

AIG Direct extends a wide range of services and products to both business markets and consumers.  The following is a brief list of the products offered to individuals:

  • Term Life Insurance

These policies provide coverage for a specified amount of time, such as 10, 20, 30 and 35 years.  In most instances, as long as the life insurance applicant is young and in relatively optimal health, affordable coverage is available.  This is an effective way of obtaining a large amount of life insurance coverage for a low premium price.  The reason for this is because term life has no cash value, it is strictly death benefit protection.  Term life insurance is a favorite for the Dave Ramsey Life Insurance plan.

Term Life products offered by American General include Select-A-Term and ROP Select-A-Term.  There is currently no word of a non-medically underwritten life insurance policy but I am sure that American General will  follow suit.

Additionally, American General offers convertible term life insurance that gives the insured the ability to convert all or part of their policy into a permanent life insurance policy.  The purpose of the conversion option is that in the event that the insured is diagnosed with a serious medical condition, the policy can be converted, replaced with a universal life insurance policy and the insured will have coverage for the rest of their life.

  • Universal Life Insurance

More flexible than other forms of permanent coverage, universal life (UL) provides policyholders with both the death benefit and a cash value.  Policyholders are able to choose how much their premium payments are and when they are due to be paid.  The premiums paid affect the cash value amount, as well as the death benefit.  Some of the more popular universal life insurance, indexed universal insurance and variable universal life insurance policies offered by American General include:

  • AG Extend Lifetime GUL
  • AG Secure Survivorship GUL
  • AG Extend IUL
  • AG Platinum Choice VUL

American General offers more versions of universal life insurance but these are the ones we use the most.

  • Whole Life Insurance

A permanent form of protection, the whole life policy provides a death benefit with a cash value feature.  As the name suggests, these policies are created to cover the insured throughout their lifetime – provided that premiums are current.  The cash value component of a whole life insurance policy is allowed to flourish while being tax-deferred.  This actually allows the cash value to increase and compound greatly over the life of the policy. 

While a policyholder has the ability to borrow against the cash value of the policy for unforeseen expenses, it’s important to note that any unpaid balance left at the time of the policyholder’s passing will be deducted from the death benefit prior to being paid to the beneficiary.

  • Guarantee Issue Whole Life Insurance

American General also offers a guarantee issue whole life insurance policy.  AIG’s guarantee issue policy is available to anyone from age 50 to age 85.  There are no health questions on the application so everyone can qualify, this is a true non medical life insurance policy for seniors.  There is a 2 year waiting period so if you die in the first 2 years your family would only receive all of the premiums paid plus 10% interest.

  • Accident and Health Insurance

When a loved one passes suddenly due to an accident, often the financial hardship is left to the family.  Accidental death and dismemberment insurance provides the coverage to take care of that financial hardship by distributing an additional payout if the policyholder’s death is the result of an accident.

AIG American General Life Insurance Riders

  • Lifestyle Income Riders – access to death benefit after the age of 85.
  • Accelerated Access Solution – access to tax-free income taken from death benefits if insured is diagnosed with a chronic medical condition.
  • Quality of Life Riders – Critical Illness Insurance and Terminal Illness Insurance with Living Benefits.

AIG American General Liberal Underwriting

As mentioned previously, American General is a great fit for those individuals considered high risk when it comes time to purchase life insurance.  American General is not currently in the no medical exam life insurance space but they are a little more aggressive with their underwriting.  The liberal underwriting used by AIG makes this insurance company a top contender for conditions, such as high blood pressure, high cholesterolsleep apnea, diabetes, and heart disease

They also consider certain lifestyle choices like recreational and medical marijuana use.

The Downside of American General Life Insurance

The life insurance provider does come up short in comparison to other providers when it comes to offering a comparable no medical exam life insurance policy.  Even though AIG products offer accidental death and dismemberment (ADD) for individuals wanting coverage to start immediately, an ADD policy has many exclusions and doesn’t cover natural death.

One More Thing…

As it has been pointed out, American General Life’s rates are quite competitive, and their table rating is superb for high risk consumers.  AIG has excellent ratings from the leading insurance rating agencies, as well as a vast array of different life insurance products.  This makes them a reliable source for a consumer’s long-term insurance concerns.

Ready to shop for life insurance?

When shopping around for life insurance, it’s best to work with an independent insurance agent or broker like Ogletree Financial.  We are able to offer you life insurance options from multiple carriers, which will give you the opportunity to analyze the policies, benefits, and premiums, and decide which policy best fits your needs. Even if you already have a life insurance policy, it may be time to replace your policy with a cheap term life policy.

Some of the most competitive life insurance companies are:

Still confused?  You can call us to discuss a policy that will fit your budget.  We are at 1-800-712-8519.

Frequently asked Questions

Does AIG have good insurance ratings?

woman with list graphic

Not only is AIG one of the largest global insurance companies, they continue to earn high ratings. A.M. Best, S&P, Fitch, and Moody, have all awarded AIG with an excellent rating of A+.  These very high ratings are a solid indication that AIG – American General will be there when you need them.

Does American General offer low-cost term insurance?

Is indexed universal life insurance a good investment

Yes, American General’s term policies are very competitively priced and the policies are convertible in the event you wanted to change from temporary insurance to permanent insurance before the policy expires. When you use the conversion option, there is no underwriting requirement for the new permanent insurance policy.

Does AIG American General offer indexed universal life insurance?

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For consumers who prefer more than just a death benefit, AIG offers several indexed universal life policies that will accommodate your insurance investment needs:
AG Extend Lifetime GUL
AG Secure Survivorship GUL
AG Extend IUL
AG Platinum Choice VUL

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