When it comes to AIG life insurance, there are a variety of different policies to choose from. In this blog post, we will be doing a review of AIG American General Life Insurance. This company has been in business since 1868 and provides both term and whole life policies. As well as burial and universal life policies. Let’s take a closer look at what they have to offer!
A Little About Them
Two companies you may have heard about: American General Life Insurance and The United States Life Insurance Company are both under a larger company named AIG.
With over 90 million insureds throughout the world, American International Group (“AIG”) is a giant within the insurance industry. Now headquartered in New York, AIG was originally founded by an American living in Shanghai. The AIG family of companies has been operating in and outside the U.S. for more than a century.
Most AIG life insurance policies sold within the U.S. are issued by AIG subsidiary American General Life Insurance Company. They are based in Houston. New York policies are issued by another affiliate, The United States Life Insurance Company in the City of New York (“US Life”).
Through various other foreign subsidiaries, AIG sells insurance in about 80 other countries and is also involved in high-profile sponsorships in many of the locations where it does business. To name just a few, AIG sponsors golf events in the U.S., rugby in New Zealand, and art institutions and museums around the globe.
Life insurance is one of AIG’s major sectors, but it sells a lot more than just that. The company’s many offerings include (but are not limited to) property and liability insurance for real estate, vehicles, and yachts; coverage for valuable personal property items; commercial liability coverage and a host of other insurance options for businesses; and numerous investment options like mutual funds.
AIG Direct
American General is sold by life insurance agents all across the U.S. However, AIG also has a direct-to-consumer marketing arm, named AIG Direct.
Although AIG Direct maintains a significant online presence, it isn’t an “online broker” like some direct-to-consumer affiliates because purchasers are working with AIG’s in-house agents—usually communicating over the phone—rather than having applications processed through the website.
AIG policies are also available through independent life insurance agencies around the country, including some brokers such as the team at IBUSA who do sell policies exclusively online.
Here is the good news, if you are considering AIG, know that when looking for the best term life insurance rates available the best method is to use a broker who works with many of the top companies. That way, if AIG isn’t the best option you can choose a different company based on your unique needs and goals.
How Are They Rated?
This is one of the most important considerations when looking at what life insurance company to choose as rating agencies take a fine-toothed comb and investigate everything about a life insurance company’s financials
The conclusion of rating agencies based on their expertise is important! So how did rating agencies rate American General Life Insurance and how do they stack up against other top-rated life insurance companies?
American General Ratings as of September 2022:
- A.M. Best rating: A
- S&P rating: A+
- Moody’s rating: A2
- Fitch rating: A+
- Comdex ranking: 82
There was a time when AIG was considered one of the best-of-the-best companies in terms of financial strength and stability. AIG’s life insurance subsidiaries regularly received A++ ratings from A.M. Best, the highest rating available. Fitch, Moody’s, and S&P all agreed that AIG was rock-solid.
But then came the financial crisis of 2007-2008 and with it a record-setting $60 billion quarterly loss, triggered by a real estate market crash that exposed an overly aggressive investment strategy.
AIG appeared close to bankruptcy until the Federal Reserve came through with a $180 billion bailout. After restructuring and hopefully some soul-searching among AIG’s execs, the company began its fight to regain a once stellar reputation.
By 2013, AIG had repaid the bail-out funds.
And, today, AIG has again been considered a financially sound company, though the “A” score from A.M. Best remains two rankings below the A++ that AIG once flaunted.
Products They Offer
- Term Life Insurance
- Whole Life Insurance
- Final Expense Insurance
- Universal Life Insurance
- Annuities, Mutual Funds, and other investment options.
If you are looking for an AIG product. Please do not hesitate to reach out.