AIG Guaranteed Issue Life Insurance Review

Written by Jeff Root

Below we will review AIG’s Guaranteed Issue Whole Life Insurance policy.

After thorough research and experience working with over a dozen companies, AIG has been included in our three best guaranteed issue life insurance companies list.

In this article, we will provide insight into the company behind one of the top guaranteed acceptance products on the market today and why it may or may not be the best choice for you.

What You’ll Learn

About AIG Life Insurance
AIG Financial Ratings
About the AIG Guaranteed Issue Policy
Pros & Cons of AIG Guaranteed Life Insurance
AIG Guaranteed Issue Whole Life Insurance Rates
Compare AIG vs Other Companies

AIG Guaranteed Issue Life Insurance Review

Pro Tip: When shopping for life insurance, remember that there is no one-size-fits-all policy, even amongst guaranteed issue life insurance. It’s always best to compare quotes from multiple companies.

About AIG Life Insurance

American General Life Insurance Company, commonly known as AIG, dates back to 1919 when it started as a general insurance company in Shanghai, China. The company opened its first American office in New York City in 1926 but was known at the time as American International Underwriters. More recently, AIG acquired American General Corporation in 2001.

You may recall that AIG Life Insurance took a hit during the 07-08 recession. Since then, they’ve done a great job at reconciling their company image by re-investing in customer service and quality products that are of value to consumers. This has allowed them to come back strong in the insurance marketplace and be accurately seen as a company with strong ratings and insurance products.

AIG Life Insurance Company Financial Ratings

Any thorough review of AIG life insurance, must address the company’s incredibly strong ratings.

For those who are unfamiliar, all life insurance companies have financial strength ratings, which estimate how likely an insurer is to pay its claims. Different agencies have different ratings, but the primary agencies include A.M. Best, Standard & Poor’s, Fitch and Moody’s.

Ratings are typically based on financial holdings, how much a company is collecting in premiums, and the amount a company is paying in claims.

AIG life insurance financial rating

As of May 2018, AIG’s financial strength is:

  • A.M. Best Rating: A, Excellent
  • Standard and Poor’s Rating: A+
  • Fitch’s Rating: A+
  • Moody’s Rating: A2

Regardless of how you see it, AIG is on stable financial ground. This is why they have worked with over 18 million clients in the U.S. and paid claims over $39 billion in just the past 5 years.

About the AIG Guaranteed Issue Whole Life Insurance Policy

There are many reasons to choose AIG for life insurance, especially their guaranteed issue product.

AIG has one of the strongest guaranteed whole life insurance policies on the market because of their financial stability, competitive premiums, added policy benefits, quality customer service, and a hassle-free application process.

These reasons are why AIG is a common go-to carrier for many independent agents who have the ability to shop across dozens of carriers.

Policy Overview

  • Face Amounts: $5,000 – $25,000
  • Age Availability: 50 – 80
  • State Availability: Unavailable in NY
  • Graded Period: 24 months
  • Premiums Returned: 10%
  • Riders: Critical Illness & Terminal Illness
  • How to Apply: Through an independent agency or directly through the carrier

Pros & Cons of AIG Guaranteed Life Insurance

AIG has many benefits for their no questions life insurance policy. Here are a few.

Pro: The Policy is Guaranteed Acceptance & Whole Life

Guaranteed issue life insurance provides coverage for those who have a pre-existing, high-risk condition. The Guaranteed Issue Life Insurance policy from AIG was created to provide financial protection that is budget-friendly for your family when you have one of these conditions. 

With this policy, you will not have to undergo medical examinations or answer health questions on the application and there are no medical or credit reports pulled by the insurance carrier.

As a form of whole life insurance, this product is guaranteed for life and cannot be canceled by AIG.

The product also builds guaranteed cash value, which can be surrendered at any time or borrowed against to help pay for monthly premiums during tough financial times.

Pro: It’s Available for Many Ages & has Great Coverage Options

This policy is available for ages 50 to 85, which is about five years longer than most other insurance carriers offer.

This is great for seniors who waited too long to apply for a final expense policy and will now be declined by most other carriers. The rates are quite a bit higher for people in their 80’s, but if you can afford it we believe some insurance is better than no insurance.

Plans are available between $5,000 and $25,000 and are designed to help cover any final expenses, such as burial or cremation.

Currently, this insurance product is available in all U.S. states with the exception of New York.

Pro: AIG has Low Rates

Since price is one of the largest deciding factors in which carrier you should select, let’s discuss it upfront.

The premiums for AIG’s guaranteed issue product are level and guaranteed to not increase during the entire life of the policy. The price you pay is determined by your age at the time of application and will remain the same from day one.

Across all carriers, AIG is one that is known for its competitive pricing. To provide insight into this, we’ve included sample policy rates by age and premium brackets below.

Pro: AIG Offers an Easy Application Process

One of AIG’s standout features is the quick and easy digital application.

  • The process takes place entirely over the phone and literally takes less than 15 minutes.
  • After the application is complete, you are immediately issued a policy number, which is quite rare in the industry.
  • Once finished, the application is sent electronically to your inbox for signature and can be signed directly from your computer or mobile device.
  • Once signed, your agent receives an instant notification and the policy is sent to the carrier for review.

Most guaranteed life insurance carriers have application processes that are far less efficient and take longer.

Pro: AIG has Strong Accelerated Death Benefits

To provide further value to their customers, AIG also offers custom riders at no additional charge.

These features are called Accelerated Death Benefits and they help those with coverage accelerate their benefits while they’re still alive as long as they have a qualifying illness.

The Chronic Illness Rider

The Chronic Illness Rider agrees to pay a lump sum payment one-time of up to 50% of the policy’s face amount.

It does this with zero waiting period, which means that if you get sick with a qualifying illness and need to access money from the policy early, you are able to do so. This comes at no additional charge too.

The types of qualifying chronic illnesses are when you are unable to perform 2 out of the 6 ADLs, or Activities of Daily Living. Some examples of ADLs include actions like walking, bathing, feeding, dressing, and others.

One important thing to note is that the benefit payment for the Chronic Illness Rider is restricted to the total premiums that had been paid for the policy to date with a maximum of 50% of the total coverage amount. In other words, you can receive 100% of the money you’ve already paid up to half of the full coverage amount.

The Terminal Illness Rider

The Terminal Illness Rider is a benefit that pays the insured 50% of the death benefit when their life expectancy is less than 24 months.

In other words, if you contract a life-threatening illness and are not expected to live past two years, you can receive 50% of the face amount to help pay for expenses. Some of these expenses include medical bills, hospice care, surgical costs, etc.

It should be noted that both the Terminal Illness and Chronic Illness Riders do have a negative effect on the death benefit payout to your beneficiaries. If you do elect to use them, the eventual policy payout will equal the policy amount minus the rider amounts that were redeemed while alive. This is important to keep in mind and discuss with your beneficiaries.

Con: The Waiting Period

Although this is standard for all guaranteed issue life insurance, it is still a drawback of this policy.

The policy comes with a 2-year waiting period calle the graded death benefit. They do, however, offer 10% return on premiums paid if death occurs within the first 24 months by natural causes.

Con: Not Available in New York

This policy is not available in the state of New York. If you live in New York, consider a different company like Columbian.

AIG Guaranteed Issue Whole Life Insurance Rates

Below are the rates for AIG guaranteed issue whole life insurance by gender.

Rates for Men


Rates for Women


These sample rates include a $24 annual policy fee that is mandatory by AIG.

Compare AIG vs Other Guaranteed Issue Life Insurance Companies

Although AIG’s guaranteed issue product is a fantastic policy backed by a strong company, we can’t say that they are definitely the best company for you specifically.

If you are considering a guaranteed issue policy you should always get rates from multiple companies and compare. We do often recommend AIG, but never before comparing to other carriers.

Other companies you might consider include:

AIG is one of 15 guaranteed acceptance companies to choose from that are also reviewed on this site. You might save thousands of dollars over the life of your policy by going with another provider.

Our team can compare guaranteed issue rates, as well as policy features between many carriers. We find out what you need and then we recommend the lowest priced, most value-packed life insurance company to meet your specific needs.

The fastest and easiest way to compare guaranteed issue rates is to fill out the quote form on this page, and give us a call. AIG guaranteed issue whole life insurance might be the best fit for you, but comparing will ensure you find the best quotes.

About Jeff Root & Guaranteed Issue Life
About Jeff Root & Guaranteed Issue Life

Jeff Root is the author of The Digital Life Insurance Agent and host of the Modern Life Insurance Selling Podcast.

Guaranteed Issue Life is a nationally licensed agency, that has helped over 1500 consumers purchase guaranteed issue life insurance. We represent over 30 life insurance companies & transact business in every state.

All content on this site has been written by life insurance experts & licensed life insurance agents.

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