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There are many different reasons why people purchase life insurance coverage. In some cases, young families want to protect the ongoing income of the breadwinner so that current monthly expenses can still be paid in the event of the unanticipated. For those who are older, there can still be a need to protect a spouse’s income – especially if pension or other sources of revenue will disappear at the death of one spouse.
There is also the case of funeral and burial expenses. Because these can be quite high today, many families just simply do not have the required funds for paying the funeral home and other service providers. Therefore, many seniors incorporate burial insurance into their overall financial plans.
In any case, before committing to a life insurance policy, make sure you have the right type and amount of coverage. It is also essential to review the insurance company you are considering buying the coverage through to make sure that it is reliable and constant financially, and that it has a good name for paying out its claims. AIG, or American International Group, meets these standards.
The History of AIG Life Insurance Company
American International Group (AIG) traces its beginnings back to nearly a century ago, when American Cornelius Vander Starr started an insurance agency in Shanghai, China, in 1919. Over time, the company grow substantially across China, and then around the world. And, by 1926, the company had its first U.S. office in New York City. Eventually, in 1939, AIG moved its company headquarters from Shanghai to New York – where it remains today.
In the mid-1940s, following World War ll, offices were also opened in Germany and Japan, with the mission of providing insurance for the United States military members. AIG continued to grow by adding products to its overall mix, as well as through mergers and acquisitions. The company has also earned numerous awards and accolades throughout the years. Just some of these include the following:
- One of 25 Noteworthy Companies for Diversity via DiversityInc (2017)
- 100% rating in the Human Rights Campaign’s Corporate Equality Index (2017 – and for five prior years)
- Business Insurance Innovation Awards Winner (2016 – and for the six previous years)
- Ward’s Top 50 Performer (for four straight years)
AIG Life Insurance Review
AIG offers insurance and financial solutions for individual consumers and businesses. Just some of these include personal insurance and retirement products, as well as group retirement and large liability lines.
The company is organized into two primary divisions. These are the Commercial Insurance, and the Consumer Insurance sectors. Within the commercial insurance division, there are three key segments. These include property casualty, mortgage guaranty, and institutional markets. The consumer insurance division also operates via three key segments, including retirement, life insurance, and personal insurance.
Also, AIG is also compartmentalized into many different subsidiaries, the largest of which include the following:
- AIG American General Life Insurance Company
- The Variable Annuity Life Insurance Company (VALIC)
- AIG Life and Retirement Company
- AIG Property Casualty
- AIG Global Real Estate
In 2016, the company brought in more than $52 billion in revenue.
Insurer Ratings and Better Business Bureau Grade
Due to its firm financial footing, as well as its consistent and timely payment of its policyholders’ claims, AIG Life has received the following ratings from the insurer rating agencies:
- A+ from S&P
- A2 from Moody’s Investor Service
- A+ from Fitch Ratings
- A from A.M. Best Company
Also, American International Group (AIG) has received an A+ grade from the Better Business Bureau (BBB), on a grade scale of A+ to F. The company, however, is not currently an accredited member of the BBB.
Over the previous three years, AIG has settled a total of 66 customer complaints – of which 29 have been resolved within the past 12 months. Of these total 66 charges, 38 had to do with the company’s products/services, while another 14 were related to billing/collection issues, 6 had to do with delivery issues, another six had to do with guarantee/warranty issues, and the remaining two were related to advertising/sales issues.
Life Insurance Products Offered by AIG
AIG offers a wide variety of life insurance products – both term and permanent. Term life insurance provides coverage for a set period, or terms, such as ten years, fifteen years, twenty years, or even thirty years.
With term insurance, there is only death benefit protection, and no cash value or savings build up. Because of this, term life insurance can often be an affordable method of securing life insurance protection, but without a high premium cost outlay.
AIG offers several term life insurance products to choose from, so consumers may have an easier time finding one that best meets their needs, as well as any budgetary constraints that they may have.
The term life insurance products offered by AIG include the following:
The Select-a-Term plan from AIG offers level term life insurance for ten years, or from 15 to 35 years. In fact, with this term life insurance option, there are 18 different term periods – so the protection can be best suited to an insured’s needs.
Also, these term policies are fully convertible to a permanent life insurance policy – up to the end of the level premium period (or the insured’s age 70, whichever occurs first). This conversion option is available without the insured having to provide evidence of insurability or any additional underwriting procedures. Also, AIG will even apply a portion of the term policy’s premium to the new permanent policy via a conversion credit.
AG ROP Select-a-Term
With the AG ROP Select-a-Term plan, an insured can get protection now, and money back later. When the insured reaches the end of the level premium term without a claim, they will have the option to get their premium dollars back – both tax-free and guaranteed.
AIG also offers a selection of permanent life insurance products. With continuous coverage, there is both death benefit protection, as well as cash value build up. The cash in the cash value component of the policy can grow and compound tax-deferred.
There are several permanent life insurance options to choose from, including universal life and whole life. The AIG whole life insurance policies have fixed premiums for the entire life of the policy – which will remain in force, provided that the premium is paid.
The cash may be withdrawn or borrowed against for any reason by the policyholder. So, if a policy’s cash value has accrued substantially, it could be a good source for paying off higher interest debt and for supplementing retirement income in the future.
Universal life insurance also offers both death benefit coverage and cash value build up. These policies are more flexible than whole life, however, as the policyholder – within certain guidelines – may choose the amount of premium that goes towards the death benefit and the amount that goes into the cash value. Also, the timing of the premium’s due date may also be altered by the policyholder to fit his or her changing needs best.
Consumers can also purchase accidental death and dismemberment insurance coverage through AIG. With AD&D, a policy payout will be made if the insured dies as the result of a covered accident. Also, the policy will also provide benefits if the insured loses a limb, suffers blindness, and is paralyzed in a covered accident.
AD&P policy proceeds are paid out in one single lump sum payment – and the funds may be used for medical expenses, living expenses, and any other need that the insured or policy beneficiary see fit.
With the accidental death and dismemberment plan through AIG, there is no medical examination required for approval – and the application process is straightforward. For those who meet the policy’s requirements, support is guaranteed – and there is not a waiting period so that coverage will begin immediately.
AIG Burial Insurance Coverage
One of the key reasons why many people purchase life insurance is to ensure that their burial and other final expenses will be covered. That way, loved ones do not need to worry about dipping into their savings or other assets to pay for them – at an already difficult time in their lives.
Today, a funeral and other related costs could easily exceed $8,500 in many areas of the United States. This applies when you factor in the expense of one’s memorial service, burial and burial plot, headstone, flowers, transportation, and other related expenses.
Burial insurance coverage through AIG can be purchased as either term or permanent insurance. As with other term insurance policies, these plans will be limited to the length of the coverage term that is chosen.
AIG also offers a guaranteed issue whole life policy. Here, applicants can secure lifetime life insurance protection without any medical exam or health questions to answer. With this guaranteed acceptance policy, those who are between the ages of 50 and 85 cannot be turned down for health reasons. This policy offers a range of benefit amounts, from $5,000 up to $25,000. Once accepted into the plan, the amount of the premium will remain level, and cannot increase for any reason.
Also, living benefits are also offered at no additional premium cost. These current benefits include:
- Terminal Illness – The terminal illness benefit provides 50% of the policy’s applicable death benefit at the time of “acceleration.” Here, a terminal illness is deemed to be either a physical condition or illness that is certified by a physician to be “reasonably expected to result in the insured’s death within 24 months from the date of certification.”
- Chronic Illness – This benefit will return all the premiums paid in, and it can be triggered when the insured cannot perform at least two of six specified “activities of daily living.” These include bathing, dressing, eating, continence, toileting, and transferring. Alternatively, this benefit may also be triggered the insured has been diagnosed with a qualifying severe cognitive impairment such as Alzheimer’s disease.
Other Products and Services Available
In addition to life insurance, AIG offers an extensive list of other goods and services to its clients. These include:
- Retirement Annuities – fixed, indexed, and variable
- Mutual Funds
- Group Retirement Plans
- Advisory Services
- Financial Planning
- Disability Insurance
- Health Insurance
- Auto Insurance
- Property Insurance
- Personal Accident Insurance
- Travel Insurance
- Commercial Casualty Insurance
- Management Liability Insurance
- Professional Indemnity Insurance
- Cyber Insurance
- Marine Insurance
- Aerospace Insurance
- Credit Lines
- Large Limit Property Insurance
- Energy and Engineered Risks Coverage
- Portfolio Solutions
How to Get the Best Premium Rates on Life Insurance Coverage Through AIG
To get the best premium rates on life insurance coverage, it can help to work with an independent life insurance agent who works with multiple insurers. That way, you can get an unbiased look at policies, companies, and premium prices – and from there choose what works for you.
If you are ready to move forward, we can help. As an independent insurance brokerage, we work with many of the top life insurance carriers in the marketplace. To see which coverage could work for you, then just simply fill out our quote form.
Should you have any additional questions, our experts will be happy to assist you. We can be reached directly by phone, toll-free, at <XXX-XXX-XXXX>. Buying life insurance protection with the help of an expert can be advantageous. So, contact us today – we’re here to help.