If you are looking for in-depth reviews of American General Life Insurance Company, American General Life (AIG) and the Guaranteed Issue Whole Life (GIWL) policy, you’re in the right place. After a thorough review of all companies, AIG guaranteed issue life insurance 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.
Pro Tip: It’s important to remember that when shopping for life insurance, the best plan is the one that meets your individual needs. There is no one-size-fits-all life insurance policy, even amongst the high-risk, no questions options. For this reason, we do our best to make sense of each product as it relates to real people. This is most commonly a combination of affordability, age availability and plan details.
About AIG – American General Life Insurance Company
American General Life Insurance Company (AIG) has roots that date back to 1919 when it began as a general insurance company in Shanghai, China. In 1926, AIG (then known as American International Underwriters) opened its first U.S. office in New York. In 2001, AIG acquired American General Corporation.
Some consumers may remember that AIG Life Insurance took a big hit during the recession, but has done an excellent job of rebuilding the company image. Their resurgence into the insurance marketplace can be seen specifically in the company’s strong ratings and their strong insurance products.
AIG Life Insurance Company Ratings
Any thorough review of American General Life Insurance Company 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.
So what about AIG? As of March 2, 2015:
- A.M. Best Rating: A, Excellent
- Standard and Poor’s Rating: A+
- Fitch’s Rating: A+
- Moody’s Rating: A2
No matter how you look at it, American General Life Insurance is on stable financial ground. This is why they have worked with 18 million clients across the country and paid out over $39 billion in claims in just the past 5 years.
Choosing AIG for Guaranteed Issue Life Insurance
There are many reasons to choose AIG for life insurance, especially their guaranteed issue product.
If we were to say why in one sentence, it would be that they are a financially strong carrier that offers 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.
AIG Guaranteed Issue Life Insurance Review
Face Amounts: $5,000 – $25,000
Age Availability: 50 – 75
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 carrier
The Pros of AIG Guaranteed Life Insurance
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 (GIWL) policy from AIG is designed to provide budget-friendly financial protection for your family when you have any one of these conditions.
There are no medical examinations, no health questions on the application and 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.
The policy comes with a 2-year graded death benefit similar to other guaranteed issue products on the market. They also offer 10% return on premiums paid if death occurs within the first 24 months by natural causes.
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 therefore perfect to cover any final expenses, such as burial or cremation.
Currently, this product is available in all states with the exception of New York.
Since price is one of the largest deciding factors in which carrier you should select, let’s discuss it upfront. The premiums for AIGs 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 their competitive pricing. To provide insight into this, we’ve included sample policy rates by particular age and premium brackets.
Keep in mind, these rates can fluctuate and the best way to get an accurate quote is by using the tool on this page. Instantly, the best guaranteed issue companies will be displayed with up-to-date pricing.
AIG Guaranteed Issue Rates
Below are the rates for AIG guaranteed issue whole life insurance by gender. These rates are up to date as of 08/17/2016.
These sample rates include a $24 annual policy fee that is mandatory by AIG.
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.
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 allow insureds the ability to accelerate their benefits while they’re still alive if they suffer from a qualifying illness.
The Chronic Illness rider pays a one-time lump sum payment of up to 50 percent of the policy’s face amount with no waiting period. This means if you get sick with a qualifying chronic illness and need to access a portion of your policy benefits early, you can do so at no additional charge.
The qualifying chronic illness is when you cannot perform 2 out of 6 Activities of Daily Living (ADLs). These ADLs including actions like bathing, walking, feeding, and others.
One thing to note is that the benefit payment for Chronic Illness rider is limited to the total premiums paid for the policy up to 50% of the policy’s coverage amount. This means you can only receive 100% of the money you’ve paid in so far, up to half of the total amount of coverage.
The Terminal Illness rider is a timely product feature that pays 50% of the applicable death benefit if your life expectancy is 24 months or less. This means if you come down with a terminal illness and are expected to live less than 2 years, you can take out 50% of your face amount to help pay for medical bills, hospice care or other expenses.
Both of these riders do ultimately affect the death benefit payout to your beneficiaries. If you elect to use them, the eventual payout will be the premium amount minus the amount you took out while alive.
The Cons of Choosing AIG
Although AIG’s guaranteed issue product is a fantastic policy backed by a strong company, we are unable to make this recommendation without talking to you first. If you are considering a high-risk, no questions policy, let’s talk to see if it is. We do love American General Life Insurance and write many of their GIWL policies, and maybe it’s the best fit for you.
That said, 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 always with the goal of saving you time and money.
Is AIG Guaranteed Whole Life Insurance is Right For You?
The best life insurance company is the one that fits your unique circumstances. For this reason, we do not favor one life insurance company over another. Instead, we find out what you need and then we recommend the lowest priced, most value-packed life insurance company to meet your specific needs. This is how we help our clients secure the best life insurance rates possible. Therefore, if price and value matter to you, give us a chance to earn your business. We are here to serve you at no cost and no obligation!
AIG guarantee issue life insurance might be the best fit for you. However, to be sure, give us a call today! We can be reached directly at 949-480-9638.