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AIG Life Insurance Review 2022

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The death of a loved one is often difficult and unexpected. Death can also cause financial hardship for those we care about. To protect loved ones, many people turn to life insurance as a way to provide financial security after death.

AIG is a popular insurance company, offering a variety of life insurance plans. In 2019, AIG underwrote more than 3.5 million individual life insurance policies in the U.S., representing 2.7 percent of total market share.

People chose AIG for their life insurance needs because the company caters their products to the individual needs of policyholders. Regardless of your situation, if you’re looking for a life insurance policy, AIG probably has a product that will match what you have in mind.

AIG Life Insurance

In a nutshell, life insurance is a kind of insurance that pays out a benefit in the event of the policyholder’s death. The policyholder pays premiums during the term of the policy and, when the policyholder dies, a lump sum – or “death benefit” – is paid to the beneficiaries listed in the policy.

Life insurance can be roughly divided into two types—term and permanent. Term life insurance is a life insurance policy that lasts for a stated term, usually 10 to 30 years. The term length is chosen at the beginning of the policy, and most companies allow the policyholder to set the term in 5-year increments. Term life insurance policies usually have no value other than the death benefit, which will only be paid if the policyholder passes away within the policy’s stated term.

Permanent life insurance does not have a set term. Instead, permanent life insurance lasts the entire life of the policyholder. When the policyholder dies, the policy’s beneficiaries will receive the death payment, unless the policy’s rules have been violated in some way. Aside from the death benefit, many permanent life insurance policies have a cash value, which grows as premiums are paid into the policy. This cash value earns interest and can be borrowed against for a loan.

Not only does AIG offer both term and permanent life insurance policies, the company offers many variations within each main kind of policy.

Types of life insurance policies offered

Term life insurance – AIG offers a variety of term life insurance options, and because these policies only pay a death benefit during a specific term and have no other value, term life insurance is usually the most affordable option. AIG offers renewable term policies, meaning you can renew the policy after the term expires. The company also offers convertible term policies, which you can convert into permanent policies.

Quality of Life Term Life Insurance® – This policy is specific to AIG. It’s a term life insurance policy that includes a rider for living benefits. These living benefits are proceeds paid by the policy before the policyholder’s death. The living benefits can be claimed if the policyholder experiences “qualifying chronic, critical or terminal illness.”

Whole life insurance This is the most common form of permanent life insurance. The policy lasts the life of the policyholder, and the premium is generally set at the beginning of the policy and does not change. AIG offers two kinds of whole life insurance: Universal Life Insurance and Guaranteed Issue Whole Life Insurance.

Universal life insurance This is a whole life insurance policy that can be adjusted while the policy is active. With a universal life insurance policy, you can raise or lower the policy’s coverage benefits to meet your changing needs throughout life. This policy has a cash value and includes tax benefits.

Guaranteed issue whole life insurance – This is a whole life insurance policy designed for people 50 to 80 years old. Most life insurance policies require a medical exam to qualify. But guaranteed issue means that you’ll get the policy without a medical exam. Keep in mind that this policy may be more costly to the policyholder due to higher risk.

Accidental death insurance – This is a very limited form of life insurance that pays out if you die or are seriously injured in a specific way. With accidental death insurance, a policyholder’s beneficiaries will receive benefits if the policyholder is “killed; or loses a limb, suffers blindness, or is paralyzed in a covered accident.”

AIG ratings, reviews, customer satisfaction and complaints

AIG is unaccredited with the Better Business Bureau and did not show up on J.D. Power’s 2019 Life Insurance Study. But AIG’s financial strength remains trustworthy, most recently receiving an ‘A’ rating from AM Best.

The National Association of Insurance Commissioners tracks customer complaints against insurance companies, with 1.0 as the baseline for average customer complaints. American General Life Insurance Company currently holds a .51 on the complaints scale, signifying a lower-than-average amount of customer complaints.

Reasons why AIG is a great option

When people sign up for life insurance, they want to make sure the company can hold up their end of the bargain and pay the benefits. AIG’s positive financial strength rating from AM Best shows that policyholders can rest easy with a AIG life insurance policy.

However, the main reason why AIG is a great option is the policy choices. Life insurance can take on many different forms, and AIG does an excellent job of offering a wide range of policies that cater to people from all walks of life.

Additional policies offered by AIG

AIG is a big insurance company, and they offer insurance for almost anything. Aside from life insurance, AIG also offers:

Frequently asked questions

What is AIG Direct?

AIG Direct is a company that sells AIG life insurance policies. You don’t have to buy an AIG life insurance policy through AIG Direct, but some people choose this option because you can get a policy through an online application or over the phone, so it’s relatively fast and easy.

How do I get a life insurance quote from AIG?

If you go with AIG Direct, you can get a quote by filling out an online application form or by contacting the direct sales department. AIG life insurance is also available through independent insurance brokers across the U.S.

What is the best life insurance policy?

Choosing a life insurance policy is a highly personal process, and what you need from your own life insurance policy will probably depend on your individual circumstances. So the best life insurance policy depends on the individual, and the best way to find a policy that works for you is to shop around for a few different quotes to compare rates and benefits.

Written by
Julian Dossett
Insurance Contributor
Julian has three years of experience writing for insurance domains including Bankrate, NextAdvisor with TIME, The Simple Dollar,, and He writes about auto, home, and life insurance.