AIG Guaranteed Issue Life Insurance Review
Expert Review Of AIG Guaranteed Issue Life Insurance
Reviewed by
Jim Tobin, CFP®
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Are you thinking of buying a guaranteed issue life insurance policy from AIG? In this review, we’ll look into the history of the company, its financial products, offerings, ratings, underwriting niches, alternatives, and pricing details to provide a comprehensive understanding of whether it’s right for your needs or not.
We’ve given a 2.5-star rating to AIG’s guaranteed issue policies. However, that’s not because there’s something wrong with AIG. As a matter of fact, AIG has the best possible guaranteed issue insurance policy you can find today. However, we’re just reluctant to rate it any higher than that, considering that there are many better alternatives to guaranteed issue insurance policies.
AIG Guaranteed Issue Whole Life Insurance Details
AIG’s burial insurance coverage policy happens to be a guaranteed issue whole life insurance plan . No medical underwriting or health questionnaires are required to qualify for this policy.
You’re eligible for the policy, regardless of your health condition.
Like all whole life policies, the following is true:
It remains in effect unless the premiums aren’t being paid
Premiums remain the same throughout your lifetime
No expiration date for the policy, irrespective of your actual age
Coverage amounts are never decreased.
Features of AIG Burial Insurance Policy
Burial insurance policies from AIG do have coverage limits, which is generally dictated by the state you’re located in.
Issue Age Group: 50 – 85
Listed Face Value – $5,000 – $25,000
States Covered: All 50 States and DC, excluding NY.
Waiting Period: Minimum of 2 years
Where to Purchase – AIG Direct or independent insurance agencies (Prices are the same regardless of the route you choose)
Yes, There is a Waiting Period (2 Years)
As it’s a guaranteed acceptance policy, you’ll need to wait for 2 years before you can qualify for benefits from the insurance company in the event of your death.
All guaranteed issue burial insurance policies, irrespective of the insurance company, have a minimum waiting period of two years.
Should you die within the first 2 years, the insurance company will reimburse all insurance premiums paid to date with an interest component of 10%. After 2 years, the company will pay out full death benefits, regardless of the actual cause of death.
However, the 2-year waiting period is not applicable to accidental deaths. If the death takes place as a result of a legitimate accident, complete benefits will be paid to beneficiaries, even if the 2-year waiting period had not yet been completed.
Living Benefits Feature With AIG Guaranteed Issue
One of the benefits of obtaining guaranteed life insurance from AIG is that it’s the only burial issue carrier whose policies offer living benefits.
Do note that these benefits may vary, depending on your location.
You can add two riders to your insurance policies without any additional costs, which are:
Chronic Illness Rider: If the insured party has been afflicted with a major chronic sickness, they may be entitled to a lumpsum payment. However, sufficient proof must be submitted of their inability to carry out a minimum of 2 out of 6 daily living activities.
Terminal Illness Riders: People with a diagnosed terminal illness that has reduced their remaining lifespan to 2 years or less can submit proof of their diagnosis as certified by a competent physician to avail 50% of all death benefits. However, this rider is only active after the 2-year waiting period.
Only AIG provides a living benefits rider on their guaranteed issue insurance product.
Guaranteed Issue Whole Life Insurance Rates From AIG
Here are some examples of the insurance rates of guaranteed issue products from AIG.
When Is It A Great Idea To Purchase This Policy From AIG?
Personally, I don’t recommend purchasing this policy from AIG. Though AIG does have the most feature-rich and affordable guaranteed issue policy available in the market today, there are much better policies you can opt for than guaranteed issue policies. There are only a few situations where a guaranteed insurance policy from AIG is a viable option.
Applicants with these conditions are better off with a policy from AIG. Consider signing up immediately in case you have one of these health conditions:
A terminal illness with your life expectancy below two yearsHeart or circulatory surgery in the last 1 yearALSCongestive heart failure or diabetesUnderwent amputation surgery due to diabetes in the last 24 monthsInsulin shock or diabetic coma in the last 24 monthsHeart attack instance in the last 12 monthsUnderwent cancer treatment in the last 24 monthsAlzheimer’s or dementia or other such memory conditionsDialysisHistory of organ transplantationCVA major stroke episode in the last 12 monthsHIV or AIDSCurrently residing in a nursing home, hospice care, hospital, or medical facility
People who have not suffered from any of the conditions mentioned above are advised not to go for an AIG guaranteed issue policy – there are many other viable alternatives
AIG Carrier Details
American General Life Insurance Company or AIG was founded in 1888. They have been issuing insurance plans for over a century.
They operate in all American states including DC. They have branches in over 80 jurisdictions & countries.
A.M. Best has awarded them an A+ rating.
Address: 9640 Granite Ridge Drive, Suite 200
San Diego, CA 92123
Phone: (888) 517-797
Web:https://www.aigdirect.com
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