AIG Life Insurance Review

American International Group, or more popularly known as AIG, is an international insurance and finance company that operates in more than 80 countries worldwide.

In the US, it offers some of the most diverse set of life insurance policies. In our AIG Life Insurance review, we’ll take a look at what they have to offer, their pros and cons as an insurer, and a recommendation if they’re worth getting or not.

The History of AIG Life Insurance

Almost a century ago, Cornelius Vander Starr founded American Asiatic Underwriters (AAU), a company selling general insurance, in China.

Two years later, the company began selling life insurance products expanded to other countries in Asia within the next few years.

AIG Life Insurance Review

Fast forward to 1967, American International Group (AIG) was established to unify most of Vander Starr’s insurance businesses. The company went public within the next two years.

Today, AIG offers various insurance products that range from life insurance, property protection, mortgage, retirement, and more. In the US, they are recognized as the biggest underwriter of industrial and commercial insurance.

AIG Life Insurance Financial Strength

  • Standard & Poor’s = A+ (strong)
  • Moody’s Investor Services = A2 (good)
  • M. Best = A (excellent)
  • Fitch = A+ (strong)

AIG Life Insurance Products

One of AIG’s best features is the variety of life insurance products they offer. Their term life insurance, for example, has two variants that emphasizes customization on term length and flexibility with how benefits are disbursed.

●    Term Life Insurance

AIG Life Insurance Review

AIG offers two types of term life insurance to its customers:

  • Select-a-term – The main premise of this product is to provide a customized term length of protection. While other insurance companies offer life insurance in 10, 20, or 30-year duration, AIG’s Select-a-term policy allows its customers to get coverage for a specific number of years.

For example: If you’re of a certain age and estimate that you’ll need exactly 17 years worth of protection to ensure your child’s education, you only need to pay for the 17 years that your policy is in force. Instead of needing to choose a 20-year plan, with Select-a-term, you’ll only pay for what you need.

  • QoL Flex Term – QoL stands for “Quality of Life”. AIG calls it, “Term Life Insurance with Living Benefits”. It offers the same features of regular term life protection but with the added plus of accessing your policy benefit if you have critical, terminal, or chronic illnesses (subject to qualifications). This could prove useful for paying for medical treatment and lift some of the financial responsibilities off your loved ones while they take care of you.

Life Insurance with Living Benefits explained

Simply put, it’s AIG’s fancy way of saying Accelerated Death Benefit riders. The main gist of this feature is to provide the benefits while the policyholder is still alive.

There are plenty of situations where this will be useful. Say the policyholder suffered a massive heart attack or similar illness that rendered him immobile and unable to perform normal activities required for daily living.

If he signed up for AIG’s term or permanent life insurance and added Living Benefits as a rider, he can access a portion of his cash value and use it to pay for medical expenses. This means he can actually make use of (a portion) his death benefit while he is still alive!

This can help his family a great deal especially if the policyholder is the breadwinner.

Choose AIG Term Life insurance if you need:

  • Basic and affordable life insurance protection that lasts for a specified length of time.
  • A flexible term life insurance that is tailor-fit to the length of term you actually need
  • Term life insurance (QoL) that features living benefits for paying off medical expenses if you acquire terminal illnesses.

●    Guaranteed Issue Whole Life Insurance

AIG Life Insurance Review

Offered to individuals aged between 50-85, AIG’s Guarantee

d Issue policy provides lifetime protection without having to take a medical exam. Benefits start at $5,000 and top at $25,000.

As a bonus, it also features AIG’s Living Benefits wherein AIG will return your premium payments if you acquire a chronic illness that prevents you from doing at least 2 of the 6 basic daily activities (transferring, using the toilet, eating, dressing, continence, bathing). Alternatively, if the policyholder has a terminal illness, half of the death benefit will be released 24 months from the date of certification.

Choose this if you need:

●    Universal Life

AIG Life Insurance Review

AIG’s universal life insurance features the same benefits that you’ll find in similar products. Like others, it has a cash value and provides flexibility with how you pay your premiums and how much death benefit you want your loved ones to receive. With universal life, you’ll get lifetime protection, cash value, tax-deferred growth, flexible death benefit, and flexible premium payments.

Choose this if you need:

  • A policy that can adapt to changes in your current and future financial situation
  • People who want more control over how much and how often they will pay the premiums for their permanent life insurance

Universal Life Insurance explained

Whole life insurance provides several advantages over term, mainly on the length of protection (lifetime) and the cash value component. But how does Universal Life differentiate itself from other types of permanent life insurance?

●     Main benefits of Universal Life insurance:

  • Adjustable premiums – You can choose to increase or decrease the amount you’ll pay for the premiums. This will prove useful if you are in a tough financial bind (you can decrease it) or are currently enjoying high-income (you can increase the payments). Later on, depending on your situation, you can easily change it to whichever setting will suit you best.
    • Adjustable death benefits – Say you have the policy in place for a couple of years. However, due to changes in your life, you realize that you need less or more coverage. With universal life, you can adjust the amount your beneficiaries will receive. This is not applicable to traditional whole life which has the death benefit fixed. This makes universal life more flexible and adaptable to your ever-changing needs.
    • Growth of your cash value is dependent on the investment performance – The interest rate of universal life is not fixed. Rather, it’s dependent on how the cash value was invested (if it is invested). This could mean better (or worse) performance in the long run. However, it does provide more potential for growth compared to the locked-in interest rate of regular whole life.

For more information about universal life insurance and how it compares to Whole life, check out this article.

●    Accidental Death & Dismemberment Insurance (AD&D)

AIG Life Insurance Review

AIG understands that life is unpredictable and accidents can happen anytime. With their AD&D insurance, members can get instant coverage for the following cases:

  • Accidents involving machinery at work
  • Poisoning
  • Falls
  • Choking
  • Suffocation
  • Drowning
  • Fire
  • Dismemberment (partial loss of body part)
  • Injuries when riding various vehicles or modes of transport (train, bus, airplane, taxi, ferry, and others)

The policy is offered to individuals aged between 18-80 years old. The benefits will be paid in full via one-time payment. And just like AIG’s other products, AD&D also includes living benefits which can provide 50% compensation if a qualifying accident (such as losing one limb) occurs.

If both limbs are lost, AIG will compensate the policyholder for the full 100% benefit. The best thing about this is that AIG will not deduct this compensation from the policy’s actual coverage.

Choose this if you need:

  • Peace of mind for your loved ones in the event of an accident
  • Instant and fast insurance protection (no medical exam required)
  • Want to get additional insurance on top of what you already have
  • Want protection but on a tight budget

AIG Life Insurance Riders

At its core, life insurance riders are add-ons you can utilize to get more value out of your insurance. You won’t need to sign up for a new policy, plus, you can add or drop riders anytime. This makes them highly adaptable depending on your needs. Here’s the list of life insurance riders that AIG has to offer.

❏    Accidental Death Benefit Rider on a Life Insurance Policy

  • The most oft-asked question about death benefit riders, in general, is this: Is the death benefit from the rider separate of what I’ll get from my main life insurance? The answer: Yes. In AIG’s case, you can opt to put an additional $250,000 coverage on top of your main policy and have your beneficiaries claim it (provided that it’s a qualifying event). The best part is that their accidental death benefit rider will get you both life insurance and accidental death benefit under the same policy.         

❏    Child Rider on a Life Insurance Policy

  • Available as a policy add-on for children aged 15 days to 19 years old. Essentially, a death benefit will be paid to the insured parent should the unthinkable happen to the child. They can add multiple child riders as the family grows.

❏    Terminal Illness Rider on a Life Insurance Policy

  • Terminal illness is defined as, “End-stage or incurable disease that is reasonably expected to result in the death of the patient”. Not only does it take physical, mental, and financial toll to the person, the hardship and stress are also shared with their loved ones. And that’s what AIG’s Terminal Illness Rider aims to help with, to relieve some of the financial stress during this most difficult time. Using this rider, the policyholder can utilize up to 50 percent of the death benefit and use that for medical expenses.

❏    Waiver of Premium Rider on a Life Insurance Policy

  • Qualified cases will mean that AIG will waive the payment for life insurance premiums. This option is available to customers who have life insurance coverages of $100,000 or more. You will be required to add it when your policy gets activated, but you have the option to remove it should you wish to.

For a more detailed look at life insurance riders and advice on which types you might possibly need, check out our in-depth guide.

AIG Life Insurance Pros and Cons


  • Great selection of life insurance products
    • AIG aims to be your one-stop-shop for all your insurance needs. They offer all kinds of policies for all budgets and term lengths.
  • Excellent financial strength ratings
    • A life insurance business veteran, the company has strong financial roots and experience in servicing policies. Their strong financial ratings are proof of this.
  • Life insurance products offer useful features and options
    • Their Quality of Life and Living Benefits feature can be highly useful in some cases. 


  • Most likely to turn down applications from people with pre-existing health conditions
  • Traditional underwriting process means it will take weeks to a month to get approved

AIG Life Insurance: Is it for you?

If you are looking for an insurance provider that offers a wide range of products along with useful extras, AIG can be a great choice. Their quotes reveal a nice balance of price and value, and their strong financial ratings give their customers the peace of mind that their provider will deliver on their claims in the future.

AIG is considered to be a “traditional” life insurance company, meaning they haven’t set their sights yet on developing their methods and underwriting process to keep up with modern trends. They still require medical exams on their term and whole life policies and the underwriting process can still take some time to complete.

Overall, AIG can be a strong choice for life insurance if you’re looking for a financially-sound institution that offers competitive premium pricing and useful features. If you need more advice about life insurance and the best possible options, please don’t hesitate to take get a free online quote or speak with one of our qualified representatives.