AIG’s name recognition often puts it on people’s shortlists when shopping for life insurance, but brand familiarity doesn’t always translate to the best coverage or rates for your specific situation. So while it’s clear that AIG offers a solid lineup of products and has rebuilt its financial stability since the 2008 crisis, the question isn’t whether AIG is a good company—it’s whether they’re the right fit for you!
That said, in our opinion, AIG distinguishes itself through its willingness to work with applicants who have health challenges that might complicate traditional underwriting. This is why we wanted to examine AIG’s actual strengths and limitations a bit further, comparing their products to market alternatives, and provide specific guidance on when AIG might be your best choice versus when other insurers could serve you better.
By the Insurance Brokers USA Team
The Insurance Brokers USA Team consists of licensed insurance professionals with extensive experience helping clients with complex health conditions find appropriate coverage. Our agents have worked with hundreds of individuals seeking AIG coverage, specializing in matching applicants with insurers that offer the most favorable underwriting for their specific health and lifestyle profiles.
AIG’s name recognition often puts it on people’s shortlists when shopping for life insurance, but brand familiarity doesn’t always translate to the best coverage or rates for your specific situation. While AIG offers solid products and has rebuilt its financial stability since the 2008 crisis, the question isn’t whether AIG is a good company—it’s whether they’re the right fit for your needs.
What Is AIG’s Current Financial Standing?
AIG’s financial journey tells an important story for potential policyholders. Before 2008, AIG consistently earned A++ ratings from A.M. Best—the highest possible rating. The 2008 financial crisis changed everything, requiring a $180 billion government bailout that AIG fully repaid by 2013.
AIG Current Financial Ratings (2024)
| Rating Agency | Current Rating | Outlook | Meaning |
|---|---|---|---|
| A.M. Best | A (Excellent) | Stable | Strong financial capability |
| Standard & Poor’s | A+ (Strong) | Stable | Strong capacity to pay claims |
| Moody’s | A2 (Good) | Stable | Good financial security |
| Fitch | A+ (Strong) | Stable | Strong claims-paying ability |
Today’s AIG operates more conservatively than its pre-crisis version, with enhanced risk management and improved regulatory oversight. The Comdex ranking of 82 places AIG in the top quartile of life insurers for financial strength, though not in the very top tier occupied by companies like Northwestern Mutual or New York Life.
Bottom Line
AIG offers solid financial security for policyholders, with ratings that support confidence in their ability to pay claims. While not the strongest in the industry, they’re well above the minimum thresholds for financial stability.
What Life Insurance Products Does AIG Offer?
Key insight: AIG provides a comprehensive range of life insurance products from basic term policies to complex universal life options, with particular strength in flexible underwriting and living benefits features.
Term Life Insurance Options
Select-A-Term Policy:
- Coverage amounts: $100,000 to $10 million
- Term lengths: Up to 35 years (18 different options)
- Return of premium rider available for 20+ year terms
- Conversion option available until age 70
- Ages 20-80 eligible to apply
Quality of Life (QoL) Flex Term:
- Similar structure to Select-A-Term
- Built-in living benefits rider included
- Accelerated death benefits for terminal, chronic, and critical illness
- Higher premiums due to the included benefits
“Based on our analysis of AIG applications, their Select-A-Term product almost always seems to consistently rank among the top 5 most competitively priced term options for healthy applicants ages 35-55. However, applicants with health conditions often find better value with their QoL series due to the flexible underwriting approach.”
– Insurance Brokers USA Product Analysis Team
Permanent Life Insurance Options
AIG Permanent Life Insurance Product Summary
Guaranteed Acceptance Whole Life
Coverage: $5,000-$25,000 | Ages: 50-80 | Features: No health questions, 2-year waiting period
Designed for final expense needs when traditional coverage isn’t available due to health conditions.
Universal Life Options
Coverage: $50,000+ | Ages: Up to 80 | Features: Flexible premiums, cash value growth
Eight different UL policies including indexed, guaranteed, and variable options with varying growth mechanisms.
Survivorship Policies
Coverage: Varies | Ages: Multiple lives | Features: Second-to-die coverage for estate planning
Covers two people with death benefit paid after both insureds pass away, typically used for estate tax planning.
Available Riders and Add-Ons
- Return of Premium: Refunds all premiums if you outlive the term
- Terminal Illness: Accelerated death benefit for terminal diagnoses
- Accidental Death: Additional benefit for accidental deaths up to $250,000
- Children’s Coverage: Up to $25,000 coverage for dependent children
- Waiver of Premium: Continues coverage if you become disabled
Key Takeaways
- AIG offers a comprehensive product portfolio suitable for various needs
- Term products are competitively priced for healthy applicants
- Universal life options provide significant flexibility but require active management
- Living benefits features distinguish AIG from some competitors
How Does AIG’s Underwriting Really Work?
Key insight: AIG’s unique “Lab Scoring” system and flexible underwriting philosophy can result in better-than-expected rates for applicants with health conditions, but may also work against applicants who appear healthy on paper.
The Lab Scoring System
AIG’s proprietary lab scoring system analyzes blood and urine test results beyond standard medical markers. This system can override traditional underwriting decisions in both directions:
- Positive override: Applicants on the borderline of a rate class may get upgraded to better pricing based on favorable lab markers
- Negative override: Applicants who appear healthy may receive higher rates if lab scores indicate hidden health risks
This approach means AIG’s final rates can be more unpredictable than traditional insurers, but it often favors applicants with well-controlled chronic conditions who maintain good overall health metrics.
“AIG’s lab scoring system can be a double-edged sword. We’ve seen clients with controlled diabetes receive preferred rates when other insurers offered standard or table ratings. Conversely, apparently healthy applicants sometimes receive unexpected rate downgrades based on lab markers other insurers might ignore.”
– Insurance Brokers USA Underwriting Specialists
Health Conditions Where AIG Often Excels
- Controlled diabetes: Particularly Type 2 with good A1C levels
- Sleep apnea: With compliant CPAP usage
- Mild depression/anxiety: Stable on medication
- High blood pressure: Well-controlled with medication
- Recreational marijuana use: More liberal approach than many competitors
- Minor heart conditions: Previous issues with good current function
Accelerated Underwriting Program
AIG offers accelerated underwriting for select applicants:
- Eligibility: Ages 18-50, coverage up to $499,999
- Process: No medical exam required, decision based on application and external data
- Timeline: Approval possible within 24-48 hours
- Limitations: Stricter health and lifestyle requirements
Bottom Line
AIG’s underwriting flexibility makes them worth considering for applicants with health conditions, but the lab scoring system adds unpredictability that requires expert guidance to navigate effectively.
How Do AIG’s Rates Compare to Competitors?
Key insight: AIG offers competitive rates for term life insurance, particularly for healthy applicants and those with certain health conditions, but rarely ranks as the absolute cheapest option in the market.
Sample AIG vs. Competitor Rates ($500,000 20-Year Term)
| Age/Gender | AIG Select-A-Term | Market Leader* | Market Position |
|---|---|---|---|
| 35-year-old male | $28/month | $25/month | Top 5 (competitive) |
| 45-year-old female | $35/month | $32/month | Top 3 (very competitive) |
| 55-year-old male | $125/month | $118/month | Top 7 (competitive) |
*Market leader represents the lowest available rate from top-rated insurers
Where AIG Rates Shine
- Ages 30-50: Consistently competitive for preferred rates
- Larger coverage amounts: $1 million+ policies often receive favorable pricing
- Health conditions: May offer better rates than competitors for specific conditions
- Return of premium: Competitive pricing when ROP rider is desired
Where AIG May Not Be Optimal
- Super preferred rates: Healthiest applicants may find lower rates elsewhere
- Older applicants: Ages 60+ may have better options with specialized carriers
- Small coverage amounts: Under $250,000 may be priced higher than competitors
- Simplified issue needs: Limited no-exam options compared to some carriers
“In our rate shopping analysis across 50+ carriers, AIG typically ranks in the top 10 for competitive pricing but rarely captures the #1 spot. Their value proposition lies more in underwriting flexibility and product features than in having the absolute lowest premiums.”
– Insurance Brokers USA Rate Analysis Team
Key Takeaways
- AIG offers competitive but rarely market-leading rates for term insurance
- Rate competitiveness varies significantly by age, health status, and coverage amount
- Health conditions may result in better relative pricing with AIG
- Rate shopping across multiple carriers remains essential for best pricing
What Are AIG’s Real Strengths and Weaknesses?
Key insight: AIG’s primary value lies in underwriting flexibility and comprehensive product options rather than market-leading rates or exceptional customer service, making them ideal for specific applicant profiles but not necessarily the best choice for everyone.
Genuine Strengths
1. Underwriting Flexibility
AIG’s willingness to consider applicants with health conditions sets them apart. Their lab scoring system and flexible guidelines often result in approvals or better rates when other insurers decline or heavily rate applications.
2. Comprehensive Product Portfolio
From simple term policies to complex universal life products, AIG offers solutions for most life insurance needs. Their living benefits features are particularly robust compared to some competitors.
3. Large Coverage Capacity
With maximum coverage up to $10 million, AIG can handle high-net-worth applicants and complex estate planning needs that smaller insurers cannot accommodate.
4. Geographic Availability
AIG operates nationwide with strong distribution networks, making their products accessible through most insurance agents and brokers.
Notable Limitations
1. Limited No-Exam Options
Unlike some competitors, AIG offers limited simplified or accelerated underwriting options, requiring medical exams for most applicants. This can delay the application process and deter some prospects.
2. Premium Predictability
The lab scoring system, while beneficial for some, adds uncertainty to the underwriting process. Final rates may differ significantly from initial quotes.
3. Customer Service Consistency
As a large insurer, AIG sometimes struggles with customer service consistency. Some clients report excellent experiences while others encounter bureaucratic challenges.
4. Financial Ratings
While solid, AIG’s current ratings fall short of the industry’s highest-rated insurers, which may concern applicants prioritizing maximum financial security.
AIG vs. Market: Detailed Comparison
| Factor | AIG Performance | Market Position |
|---|---|---|
| Financial Strength | Good (A ratings) | Above average |
| Premium Competitiveness | Competitive | Top 10 |
| Underwriting Flexibility | Excellent | Top 5 |
| Product Variety | Comprehensive | Top 5 |
| Customer Service | Variable | Average |
Bottom Line
AIG excels as a specialized solution for applicants with health conditions or complex coverage needs, but healthy applicants seeking the lowest possible premiums may find better value elsewhere.
When Is AIG Your Best Choice?
Key insight: AIG works best for applicants with health conditions, those needing flexible underwriting, or individuals seeking comprehensive product features rather than simply the lowest possible premiums.
Ideal AIG Candidates in our opinion
Health-Related Scenarios:
- Controlled chronic conditions: Diabetes, hypertension, sleep apnea with good management
- Mental health history: Depression or anxiety stable on medication
- Previous health issues: Heart conditions, cancer survivors with good prognosis
- Lifestyle factors: Recreational marijuana users, moderate alcohol consumption
- Multiple health factors: A Combination of conditions that complicate traditional underwriting
Coverage and Product Scenarios:
- Large coverage needs: $1 million+ policies where AIG’s capacity and pricing excel
- Living benefits priority: Applicants wanting accelerated death benefits for chronic or critical illness
- Return of premium interest: Those specifically seeking ROP term policies
- Estate planning needs: Complex universal life or survivorship requirements
- Business applications: Key person or buy-sell agreement coverage
When to Consider Alternatives
Better Options May Exist For:
- Excellent health profiles: Super preferred applicants may find lower rates elsewhere
- No-exam preferences: Carriers with stronger simplified issue programs
- Price-only focus: When the lowest premium is the sole consideration
- Maximum financial strength: Applicants requiring A++ rated insurers only
- Small coverage amounts: Under $250,000, where specialized carriers may offer better value
“AIG works best when underwriting flexibility matters more than getting the absolute lowest premium. We typically recommend AIG when clients have been declined elsewhere or received disappointing rate classifications from other carriers. Their willingness to look beyond standard underwriting guidelines often surprises applicants.”
– Insurance Brokers USA Placement Specialists
Bottom Line
Choose AIG when you need underwriting flexibility, have health conditions, or require specific product features. Look elsewhere if you’re in excellent health and the premium cost is your primary concern.
How Does the Application Process Work?
Key insight: AIG’s application process is thorough and traditional, requiring medical exams for most applicants but offering the potential for more nuanced underwriting decisions through their lab scoring system.
Standard Application Timeline
- Application submission: 30-45 minutes with an agent or online
- Medical exam scheduling: 2-5 business days
- Medical exam completion: 1-2 weeks (at your location)
- Medical records ordering: 2-4 weeks (if required)
- Underwriting review: 2-6 weeks, including lab scoring analysis
- Final decision: 4-10 weeks total timeline
Required Medical Exams
AIG typically requires medical exams for most coverage amounts:
- Basic exam: All coverage amounts (height, weight, blood pressure, urine sample)
- Blood work: Usually required for coverage over $100,000
- EKG: Required for higher ages and coverage amounts
- Additional tests: May be required based on health history or coverage amount
Accelerated Underwriting Option
Limited availability for select applicants:
- Age requirements: 18-50 years old
- Coverage limits: Up to $499,999
- Health criteria: Strict guidelines for health and lifestyle
- Timeline: 24-48 hours for approval
- Process: Application review plus external data verification
Key Takeaways
- Plan for 6-10 weeks for standard underwriting completion
- Medical exams are required for most applications
- Lab scoring results may override initial underwriting assessments
- Accelerated underwriting is available, but with strict limitations
Frequently Asked Questions
Direct answer: Yes, AIG is a solid life insurance company with good financial ratings and competitive products, particularly strong for applicants with health conditions, though not necessarily the best choice for everyone.
AIG’s strength lies in its underwriting flexibility and comprehensive product options, rather than in market-leading rates or exceptional customer service. They’re especially valuable for applicants who have been declined elsewhere or received poor rate classifications from other insurers.
Direct answer: AIG’s lab scoring analyzes blood and urine test results beyond standard markers to create a health score that can override traditional underwriting decisions, either improving or worsening your rate classification.
This proprietary system examines biomarkers that other insurers might ignore, potentially identifying health risks or confirming good health that isn’t apparent from medical history alone. The system can work for or against applicants, making AIG’s final rates less predictable than traditional insurers.
Direct answer: AIG offers limited no-exam options through accelerated underwriting for select applicants ages 18-50 with coverage up to $499,999, but most applicants will need a medical exam.
Unlike some competitors who specialize in simplified issue coverage, AIG focuses on traditional underwriting with medical exams. Their accelerated program has strict health and lifestyle requirements that exclude many applicants who might qualify for no-exam coverage elsewhere.
Direct answer: AIG’s rates are competitive and typically rank in the top 10 among major insurers, but they rarely offer the absolute lowest premiums available in the market.
Rate competitiveness varies by age, health status, and coverage amount. AIG often provides better value through underwriting flexibility and product features rather than rock-bottom pricing. Applicants with health conditions may find AIG’s rates more favorable compared to other insurers.
Direct answer: AIG nearly collapsed during the 2008 crisis and required a $180 billion government bailout, which they fully repaid by 2013, but their financial ratings remain lower than pre-crisis levels.
The crisis resulted from aggressive investment strategies in real estate-backed securities. AIG has since restructured, implemented more conservative practices, and restored financial stability, though its current A ratings reflect a more cautious market assessment of its risk profile.
Direct answer: Possibly yes—AIG often provides competitive rates for controlled diabetes cases due to their flexible underwriting approach, but you should still compare rates with other diabetes-friendly insurers.
AIG’s lab scoring system and underwriting flexibility frequently result in better-than-expected rates for diabetics with good A1C levels and no complications. However, other insurers like Prudential or Lincoln Financial may also offer competitive rates, making comparison shopping essential.
Important Disclaimer
This article provides general information about AIG life insurance products and should not be considered personalized insurance advice. Rates, policy terms, and availability vary based on individual circumstances, including age, health, location, and coverage amount. Insurance decisions should be made in consultation with qualified insurance professionals who can evaluate your specific situation and compare options across multiple carriers. Always review policy documents carefully before making any insurance purchase.
Ready to Compare AIG with Other Top Insurers?
Our experienced team specializes in comparing AIG against other leading life insurance carriers to find the best combination of rates, underwriting, and product features for your specific situation. We know when AIG is your best choice and when alternatives might serve you better.
Why Choose Insurance Brokers USA:
- Access to AIG and 50+ other top-rated life insurance carriers
- Expert guidance on AIG’s lab scoring and underwriting process
- Side-by-side rate comparisons with detailed analysis
- Specialized experience with health condition underwriting
Call us today for your personalized comparison: 888-211-6171
Licensed insurance professionals available Monday-Friday, 8 AM – 6 PM EST. We’ll help you determine if AIG is right for your situation or if better alternatives exist.
