AIG Life Insurance Review | The Ascent – The Motley Fool

AIG life insurance at a glance

Average costs: Standardized scenario $39.89/month for 35-year-old male non-smoker with a 20-year term; $67.57/month for 35-year-old male non-smoker with a 30-year termTerm life policy limits: Up to $10 millionWhole life policy limits: Up to $25,000 for guaranteed issue whole life coverageRiders/Add-ons: Accidental death benefit, child rider, terminal illness rider, waiver of premium riderEligibility: Age 70 or below for term life; age 80 or below for whole lifeDiscounts available: N/AOther insurances offered: Travel; personal accidental and health

Top perks

Multiple coverage types

American International Group (AIG) offers a choice between term life, universal life, and guaranteed issue whole life insurance. This means almost every life insurance shopper can find a policy they are looking for. Many of AIG’s term life policies can also be converted to permanent insurance. Some competitors, such as Bestow, provide only term life, so consumers won’t have as wide a range of options — or the ability to change to permanent coverage if their needs evolve.

Many choices of term lengths

AIG offers a choice of 18 different term durations for term life insurance coverage. With so many choices, consumers can make sure they get protection only for as long as they need it. No insurance buyer will have to settle for a term length that doesn’t work for them.

Personalized help getting coverage

AIG Direct makes it easy to obtain quotes online or to get help from a professional agent who can offer advice on life insurance needs. Online quotes are free and personalized and AIG Direct Sales support is available via phone Monday through Saturday for those in need of extra assistance. Some competitors don’t offer as much support, leaving customers to make important decisions independently. Others require contacting an agent to obtain pricing. AIG gives consumers a choice of how to explore coverage options.

What could be improved

Better customer service

AIG ranks poorly for customer service. According to J.D. Power’s 2021 U.S. Individual Life Insurance Company, the industry average overall customer satisfaction rating is 776. AIG receives a rating of 729. By contrast, the highest-ranked insurer, State Farm, had a rating of 822.

AIG is the second-lowest insurer on J.D. Power’s list, only scoring above Brighthouse Financial in terms of customer rankings.

More options for no-medical-exam coverage

AIG offers guaranteed issue whole life policies with between $5,000 and $25,000 of coverage that do not require a medical exam. But most other options, including term and whole life plans, require applicants to undergo a screening by a health professional. Some competitors such as Bestow offer term-life coverage to qualified applicants without this additional hurdle.

More policy types

AIG does not offer other common types of insurance, such as home or auto coverage. Consumers who want to buy all or most of their insurance from the same company will find they cannot do so if they get life insurance through AIG. With few types of policies available, earning loyalty discounts for bundling coverage won’t be possible.