AIG is one of the many options that you have when it comes to choosing a life insurance plan. AIG is a huge international insurance group, with a customer base of roughly 90 million customers located around the world. With so many different life insurance companies to choose from, you may wonder how AIG stacks up. In this article, we’ll cover everything you need to know before getting started with AIG life insurance.
AIG Fast Facts
AIG is considered one of the largest insurers in the world, with operations in over 80 different countries. They were founded in 1919 when founder Cornelius Starr traveled to Shanghai to offer insurance there. He later expanded operations back to the US and Latin America. AIG has always offered a wide variety of insurance types to its customers, including life insurance. They are currently headquartered in New York City. AIG struggled during the financial crisis in 2008. They were bailed out by the US government, which bought equity shares in the company. After the financial crisis, AIG dramatically restructured and was able to regain financial stability. The government sold its last AIG shares in 2012. With the recent restructuring, life insurance is offered through the AIG life and retirement unit instead of the general insurance unit. The company currently maintains an ‘A’ rating from AM Best and other independent rating agencies for financial security.
What types of life insurance does AIG offer?
AIG has an extensive selection of life insurance offerings for their customers. One of their most popular is their term life insurance, which they call Select-A-Term. You can choose from any policy length between 15 and 30 years, and you can also opt for 15 years or 30 years. However, as you get older, you may be limited in the length of policy that you can purchase. These term life policies start at $50,000 in value and can go up to 10 million dollars if you need additional coverage. The premium prices will stay the same for the entire length of the policy. You do have the option to convert your policy to whole or universal life as needed, and you can also ‘ladder’ multiple policies together. For example, you might purchase one policy to cover your student loans, another for your mortgage, and another for your child’s education costs.
AIG also offers universal life insurance policies. These last for your entire life and a portion of your insurance premiums will go towards a cash value portion. Many people like to use these policies as a way to save for later in life in addition to paying for end of life expenses. You can opt to let your cash value grow at a fixed interest rate of 2 percent or invest it in indexed accounts. These policies are more expensive than their term life counterparts.
If you need to find a life insurance policy and are concerned that you may be denied due to advanced age or health conditions, AIG offers guaranteed policies that may be a good fit for you. They offer guaranteed whole life, which is limited to a $25,000 death benefit and is intended for burial costs and other unavoidable end-of-life expenses. Alternatively, you can opt for guaranteed universal life insurance, which offers coverage starting at $100,000. This will cover you for your entire life as long as premiums do not lapse. While the premiums for this policy are more expensive than term life insurance, it offers you more flexibility and coverage, and you won’t be denied based on any health conditions.
What are the advantages of using AIG?
There are many advantages to using AIG as your life insurance provider. The most significant benefits are that they have an excellent selection of policies to choose from. Whether you need a short, small life insurance policy, or something longer with extensive coverage, you will be able to find it. Their guaranteed issue universal life insurance policy, in particular, provides excellent value and is something difficult to find at many other life insurance companies. AIG also offers international coverage, which makes them an excellent option for people who travel overseas.
AIG also offers an excellent selection of riders that you can use to customize your policy even more. For example, when you purchase a term life insurance policy, you can add riders to cover your children. You can also add riders for additional coverage in the case of a terminal illness or accidental death. You can also purchase terminal illness and injury riders for other policies. These are just a few of the many riders available, and your insurance agent can help you decide which ones make the most sense for your situation.
What are the disadvantages of using AIG?
The biggest potential problem you will encounter when using AIG is its customer service department. They receive a disproportionately high number of complaints about their customer service when compared with other insurance companies of the same size. You cannot submit claims online, so making a claim typically requires filing a form in the mail and calling customer service. It’s common practice at AIG to be bounced from department to department while trying to contact customer service. You can, however, make payments and access certain policy documents online. While the company’s offerings are flexible and legitimate, customers should be prepared for lengthy claims processes.