American General Life Insurance Review

American General Life Insurance Ratings at a Glance

If you're looking to buy life insurance, you want all the details before you make a decision. For example, what type of life insurance should you buy and which provider should you purchase a policy from? Benzinga understands how important this decision is, and you will find a guide below that reviews American General Life Insurance to determine whether or not this insurer is right for your needs.

AIG American General Life offers a variety of life insurance products, including term, whole life and universal life insurance.

Term Life Insurance

AIG offers term life insurance products to policyholders aged between 20 and 80. Term life policies are available for 10, 15, 30 and 35 years. The coverage amounts can range from $50,000 to $10,000,000. All policies are available with level premiums and can be renewed for a one-year term up to 95 years of age. Term policies can also be converted until age 70. For insureds below 55 years old, a return of premium policies may also be available. 

AIG American General Life offers the following term life policies:

• Select-A-Term is unique in that you can choose the coverage period that suits you best from 17 options. A typical insurance company offers only four possibilities. Because of its flexibility, it is a good choice for many consumers.
• Return of Premium Term provides a return of premiums paid if you outlive your policy term. This product might be worth considering if you are looking for a guaranteed payment whether you die or live. 

Standard features of American General Life Insurance term policies:

• Benefits accrue faster.
• End-of-life illness: 50% of the death benefit is available for disease or chronic conditions that are expected to cause death within the next 12 months.
• Chronic illness: Partially distributed death benefit is available for those who are unable to perform two or more of the activities necessary for daily living or are cognitively impaired.

You can customize an AIG American General Term Life Policy with the following riders:

• Accidental Death Benefit pays a death benefit in addition to your base policy's death benefit if you die from specific accidental injuries.
• Child Rider pays a death benefit up to the rider amount to the insured parent upon the death of an insured child.
• Disability Income pays a monthly benefit to the primary insured if the primary insured is unable to work due to an injury or illness that is covered.
• Terminal Illness pays up to 50% of the death benefit not to exceed $250,000 for a qualified terminal illness.
• Waiver of Premium waives the premium in the event of total disability of the named insured after six months.
• Select Income pays a monthly benefit to the beneficiary after the death of the named insured.

Term life insurance is an excellent option if you are looking for a lower investment and do not anticipate that you will need life insurance in the future or if you want to convert to a permanent plan later.

Permanent Life Insurance

The policy is effective as long you pay the premiums. Premiums are higher because of two features. First, you pay for the death benefit, which will be left to your loved ones. You can also access a tax-deferred cash value account throughout your life.

American General offers two types of permanent life insurance: 

• Guaranteed Issue Whole Life is a no-medical-exam permanent life policy with a death benefit of up to $25,000. 
• Universal Life is a permanent policy that allows you to change the death benefit and premium paid over time .

Standard features of American General Life Insurance permanent life policies:

• Coverage is available to advanced ages.
• The policy generates cash value on a tax-deferred basis.
• The cash value can be borrowed.
• Cash value is guaranteed.
• Whole life policy premiums are set and do not change.
• Universal life premiums can be adjusted by the insured.

You can customize an AIG American General Permanent Life Insurance with the following riders:

• Accidental Death Benefit pays a death benefit in addition to your base policy's death benefit if you die from specific accidental injuries.
• Child Rider pays a death benefit up to the rider amount to the insured parent upon the death of an insured child.
• Disability Income pays a monthly benefit to the primary insured if the primary insured is unable to work because of an injury or illness that is covered.
• Terminal Illness pays up to 50% of the death benefit not to exceed $250,000 for a qualified terminal illness.
• Waiver of Premium waives the premium in the event of a total disability of the named insured after six months.
• Select Income pays a monthly benefit to the beneficiary after the death of the named insured.

American General Guaranteed Whole Life is an excellent choice for those aged 50 to 80 looking for guaranteed permanent protection with a budget-friendly fixed premium. In addition, its Universal Life policy is a perfect choice for those just starting in life or recently married who prefer the flexibility to change the death benefit or premiums over time.

Many customer service options can be performed online, including: 

• Paying your bill
• Checking your payment status
• Updating your address
• Changing your beneficiaries
• Messaging customer service

You must contact AIG American General Life directly or email to cancel coverage.

It will also allow you to notify the company online about a death. You can call AIG American General Life directly or your agent can submit information to the claims section.

AIG American General Life Insurance Company has received a lower-than-average rating from the Better Business Bureau and J.D. Power, but a higher-than-average rating from Moody's and AM Best. In addition, its NAIC complaint index is lower than the industry average.

American General Life has competitive term life insurance premiums, especially at higher death benefit amounts. Its guaranteed whole life and universal life premiums compare favorably with the competition.

The average premium of life insurance does vary by many factors such as:

• Age
• Amount of coverage
• Health
• Lifestyle
• Policy type
• State

However, on average, a healthy male, non-smoker age 35 years, can expect to pay around $20 to $30 per month on a 20-year term life policy worth $500,000 in coverage. To get the best coverage for the best rate, we recommend getting coverage sooner rather than later. As you age and your health naturally declines, the premium per policy will increase.

American General Life does not have a smartphone app. Nor can you apply online without a representative contacting you. However, you can sign in on its website to pay premiums online for its life insurance products. You can also make recurring payments using this feature. 

Furthermore, you can update or modify your beneficiaries using the platform. To get a quote or apply for coverage, you must speak to an agent. Depending on the insured's age and the coverage amount requested, a medical exam may be required. However, medical exams are not necessary for the guaranteed whole life policy.

American General Life vs. Competitors

American General Life stands out from its competition in several ways. First, many consumers like its no-medical-exam guaranteed issue whole life policy. Others find its term premiums attractive, especially at higher death benefit amounts. Finally, the flexibility of its universal life policy is appealing to those who may need to change their death benefit or adjust premiums down the road.

We gave American General Life Insurance a rating of 2. We gave them points for their low-cost term life insurance, and its no medical exam feature. However, this company does not allow quotes and does not allow users to apply for coverage online at this present time. 

In an app world, and with most consumers purchasing goods and services from their mobile devices, this company does not have a mobile app at this present time. Also, the underwriting process is a little slower than average. Trust Pilot gives American General Life a score of 2.2, which could be a bit higher with some improvements in their technology area.

American General Life: Additional Options

AIG American General Life also offers supplemental insurance products such as long-term care and disability, along with investment products such as mutual funds and annuities. Moreover, AIG offers property and casualty insurance, including automobile and commercial insurance.

Frequently Asked Questions