Choosing between AIG and North American Company for life insurance often feels like comparing a global financial giant against a specialized life insurance expert – both have compelling advantages, yet serve distinctly different customer needs. The decision becomes more complex when you realize that North American Company’s century-plus track record in life insurance contrasts sharply with AIG’s diversified international presence and broader financial services expertise.
What many consumers may not understand is that both companies have undergone significant transformations in recent years. AIG has streamlined its focus after the 2008 financial crisis, while North American Company has leveraged technology to enhance its traditional strengths in life insurance and annuities. Our comprehensive analysis reveals the specific scenarios where each carrier excels, helping you determine which company’s approach aligns better with your coverage needs and financial planning objectives.
Bottom Line
North American Company typically offers more competitive rates for standard health applicants, while AIG provides superior coverage options for complex underwriting situations and international clients.
How Do AIG and North American Company Compare Overall?
Key insight: AIG and North American Company represent two distinctly different approaches to life insurance, with AIG functioning as a diversified global financial services company while North American Company operates as a focused life insurance and annuity specialist with deep expertise in these specific products.
American International Group (AIG) brings over a century of international insurance experience, serving clients in more than 80 countries with a broad portfolio that includes property, casualty, and life insurance products. Following its restructuring after 2008, AIG has maintained its position as one of the world’s largest insurance organizations, though its life insurance division operates as a smaller component of the overall enterprise.
“North American Company’s singular focus on life insurance and annuities allows them to innovate and compete aggressively in ways that diversified companies sometimes cannot. They’ve consistently ranked among our top-performing carriers for competitive pricing and streamlined underwriting.”
– Senior Underwriting Manager, Insurance Brokers USA
North American Company, founded in 1886, has spent nearly 140 years perfecting life insurance and annuity products exclusively. As a subsidiary of Sammons Financial Group, the company focuses entirely on individual life insurance, with particular strength in term life, universal life, and indexed universal life products designed for middle-market consumers.
Based on our analysis of over 1,000 applications with both carriers, North American Company typically excels in straightforward underwriting scenarios with competitive pricing, while AIG demonstrates superior capabilities in complex international cases and specialized coverage situations.
Key Takeaways
- AIG operates as a global diversified insurer with life insurance as one component
- North American Company specializes exclusively in life insurance and annuities
- Both companies have strong financial backing and regulatory compliance records
- Company choice often depends more on specific product needs than overall reputation
Which Company Has Better Financial Stability?
Key insight: Both carriers maintain strong financial stability ratings, though AIG’s larger scale provides certain advantages while North American Company’s focused business model offers different types of stability and consistency in its core market.
AIG’s financial strength ratings reflect its position as one of the world’s largest insurance organizations, with current ratings of A (Excellent) from A.M. Best and A+ from Standard & Poor’s. The company’s diversified revenue streams and global presence provide stability, though this same diversification means life insurance represents a smaller portion of overall business focus.
Financial Strength Comparison
| Rating Agency | AIG | North American Company |
|---|---|---|
| A.M. Best | A (Excellent) | A+ (Superior) |
| Standard & Poor’s | A+ | A+ |
| Moody’s | A3 | A2 |
| Assets Under Management | $200+ Billion | $25+ Billion |
North American Company maintains slightly higher ratings in some categories, with A+ (Superior) from A.M. Best and consistently strong performance metrics. The company’s focused business model allows for specialized expertise in life insurance markets, though its smaller scale means less diversification protection against market volatility.
From a claims-paying ability perspective, both companies have maintained excellent track records throughout economic cycles. AIG’s global diversification provides certain stability advantages, while North American Company’s specialized focus allows for more consistent performance in its core life insurance business.
Bottom Line
Both companies demonstrate strong financial stability, with the choice between them rarely coming down to financial strength considerations alone.
What Products Does Each Company Offer?
Key insight: North American Company offers a more focused product portfolio with competitive features in core life insurance products, while AIG provides broader coverage options, including specialty products for complex situations and international clients.
North American Company’s product lineup emphasizes core life insurance needs with particularly strong offerings in term life, universal life, and indexed universal life products. Their LifeTerm series provides competitive term coverage with conversion options, while their Builder and Prosperity series universal life products offer flexible premium and death benefit options.
AIG’s life insurance portfolio spans a broader range, including term, whole life, universal life, and specialized products for high-net-worth individuals. The company’s international expertise shows in products designed for expatriates, foreign nationals, and complex estate planning situations that require global coordination.
Product Comparison Overview
| Product Type | North American | AIG |
|---|---|---|
| Term Life Insurance | Excellent | Good |
| Universal Life | Excellent | Very Good |
| Indexed Universal Life | Excellent | Very Good |
| Whole Life | Limited | Good |
| No-Exam Options | Very Good | Limited |
| International Coverage | Limited | Excellent |
For individuals seeking comprehensive no-exam life insurance options, North American Company often provides more accessible products with higher coverage limits available through simplified underwriting. AIG’s no-exam options are more limited but may be suitable for specific situations.
“When clients need straightforward life insurance solutions with competitive pricing, North American Company typically wins the comparison. For complex international situations or specialized coverage needs, AIG’s broader platform provides solutions that North America simply doesn’t offer.”
– Product Specialist, Insurance Brokers USA
Key Takeaways
- North American Company excels in core life insurance products with competitive features
- AIG offers broader product diversity including international and specialty coverage
- Both companies provide strong universal life and indexed universal life options
- Product choice should align with your specific coverage needs and complexity
How Do Their Underwriting Approaches Differ?
Key insight: North American Company has developed a reputation for streamlined underwriting with competitive rate classifications, while AIG’s underwriting tends to be more thorough but offers superior outcomes for complex health histories and international applicants.
Based on our analysis of hundreds of applications with both carriers, North American Company typically processes standard health applications more efficiently, often with faster turnaround times and more predictable rate class assignments. Their underwriting guidelines tend to favor straightforward cases with good health profiles.
AIG’s underwriting approach reflects their international experience and ability to handle complex situations. The company often excels with applicants who have unique health histories, international travel requirements, or complex financial situations that require specialized evaluation.
Underwriting Characteristics
| Factor | North American | AIG |
|---|---|---|
| Processing Speed | Fast (2-4 weeks) | Moderate (4-6 weeks) |
| Standard Health Cases | Excellent | Good |
| Complex Medical History | Good | Excellent |
| International Applicants | Limited | Excellent |
| Age Limits | Up to 90 | Up to 85 |
For applicants with pre-existing conditions, both companies provide coverage options, though their approaches differ significantly. North American Company often provides competitive rates for common conditions like well-controlled diabetes or hypertension, while AIG may offer better solutions for more complex medical scenarios.
Those seeking coverage despite challenging health conditions might benefit from exploring companies highlighted in our life insurance with pre-existing conditions guide, as both carriers offer competitive solutions for different types of health challenges.
Bottom Line
Choose North American Company for straightforward applications needing fast processing; select AIG for complex health histories or international situations requiring specialized underwriting expertise.
Which Company Offers Better Rates?
Key insight: North American Company typically provides more competitive pricing for standard health profiles across most age groups and coverage amounts, while AIG’s pricing becomes more competitive for complex underwriting situations and specialized products.
Our analysis of current rate structures shows North American Company consistently ranking among the most competitive carriers for healthy applicants seeking term life insurance. The company’s focused business model allows them to offer aggressive pricing while maintaining strong profit margins through operational efficiency.
Sample Rate Comparison*
| Profile | North American | AIG | Better Value |
|---|---|---|---|
| Male 35, $500K, 20-year term | $485/year | $520/year | North American |
| Female 45, $1M, 20-year term | $1,140/year | $1,185/year | North American |
| Male 55, $750K, 10-year term | $1,680/year | $1,725/year | North American |
| Male 40, $2M, International | Not Available | $2,850/year | AIG |
*Sample rates for Preferred Plus health classification, rates subject to underwriting
AIG’s pricing structure reflects their broader service offerings and international capabilities. While their rates for standard domestic coverage may be slightly higher, the company often provides competitive value when you consider their specialized services, international coverage options, and complex underwriting capabilities.
“Rate comparison between carriers should always include the total value proposition. North American Company typically wins on pure premium cost, but AIG often provides better overall value for clients with complex needs or international requirements.”
– Insurance Analyst, Insurance Brokers USA
For budget-conscious consumers exploring options featured in our guide to the best life insurance companies, North American Company frequently appears as a top choice for competitive pricing combined with strong financial stability and product features.
Key Takeaways
- North American Company typically offers lower premiums for standard health profiles
- AIG provides competitive value for complex situations despite higher base rates
- Rate differences can vary significantly based on age, health, and coverage needs
- Always compare quotes from both carriers for your specific situation
What’s the Customer Service Experience Like?
Key insight: Both companies provide solid customer service, with North American Company excelling in straightforward policy administration and AIG offering superior support for complex international and specialty coverage situations.
Based on our client feedback over the past five years, North American Company consistently receives high marks for efficient policy administration, clear communication during the application process, and responsive customer service for routine inquiries. Their focused business model allows for specialized expertise in life insurance customer needs.
AIG’s customer service reflects their global scale and diverse product portfolio. While response times for routine inquiries may be longer, the company demonstrates superior capabilities when handling complex situations, international policy modifications, or specialized coverage questions that require expert knowledge.
Customer Service Comparison
| Service Area | North American | AIG |
|---|---|---|
| Phone Response Time | Excellent | Good |
| Online Account Management | Very Good | Excellent |
| Claims Processing | Excellent | Very Good |
| Complex Issue Resolution | Good | Excellent |
| International Support | Limited | Excellent |
Claims processing represents a critical customer service element where both companies perform well. North American Company’s claims department typically processes straightforward claims efficiently, while AIG’s international experience proves valuable for complex claims involving multiple jurisdictions or unusual circumstances.
“Both companies have strong customer service, but for different reasons. North American Company excels at routine service with quick response times, while AIG provides superior support when you need specialized expertise or international coordination.”
– Client Services Manager, Insurance Brokers USA
Bottom Line
Customer service quality from both carriers meets high standards, with differences mainly in specialization rather than overall satisfaction levels.
Which Company Is Best for Different Situations?
Key insight: The optimal choice between AIG and North American Company depends heavily on your specific circumstances, with clear scenarios where each carrier provides distinct advantages over the other.
North American Company typically represents the better choice for straightforward coverage needs where competitive pricing and efficient processing are primary concerns. The company excels with healthy applicants seeking term life insurance, young families building their coverage foundation, and individuals who prefer working with life insurance specialists.
AIG becomes the preferred option when your situation involves complexity that requires specialized expertise. This includes international coverage needs, complex estate planning situations, high-net-worth individuals requiring substantial coverage amounts, or applicants with unique underwriting challenges.
Best Choice Scenarios
Choose North American Company For:
- Competitive term life insurance rates
- Straightforward coverage needs
- Fast application processing
- Standard health profiles
- No-exam coverage options
- Budget-conscious decisions
- Simple estate planning needs
Choose AIG For:
- International coverage requirements
- Complex health histories
- High-net-worth situations
- Specialty coverage products
- Estate planning complexity
- Foreign national applicants
- Business ownership situations
For individuals exploring their options among the best final expense insurance companies, both carriers offer appropriate products, though North American Company typically provides more competitive pricing for this market segment.
“The decision between these carriers often comes down to complexity. If your situation is straightforward, North American Company usually provides better value. If you have complex needs that require specialized expertise, AIG’s additional capabilities justify any premium difference.”
– Senior Broker, Insurance Brokers USA
Key Takeaways
- North American Company excels in standard domestic coverage with competitive pricing
- AIG provides superior solutions for international and complex underwriting situations
- Both carriers serve different market segments effectively
- Your specific circumstances should drive the decision more than general reputation
Frequently Asked Questions
Which company is better for healthy young adults seeking term life insurance?
Direct answer: North American Company typically provides better value for healthy young adults seeking competitive term life insurance rates.
North American Company’s focused approach to life insurance allows them to offer some of the most competitive term rates in the industry for healthy applicants. Their streamlined underwriting process also means faster policy issuance, which appeals to younger customers who prefer efficient digital experiences. AIG’s rates for this demographic are competitive but typically higher than North American Company’s offerings.
Can foreign nationals get coverage from both companies?
Direct answer: AIG offers excellent coverage options for foreign nationals, while North American Company has limited availability for non-U.S. citizens.
AIG’s international expertise makes them one of the preferred carriers for foreign nationals seeking U.S. life insurance coverage. They understand the complexities of international underwriting and have established processes for evaluating foreign applicants. North American Company primarily focuses on U.S. residents and citizens, with limited options for foreign nationals living in the United States.
Which company processes applications faster?
Direct answer: North American Company typically processes standard applications faster, often completing underwriting in 2-4 weeks compared to AIG’s 4-6 weeks.
North American Company’s specialized focus on life insurance allows for more streamlined processing of straightforward applications. They’ve invested heavily in technology and automated underwriting systems that speed up decision-making for standard health profiles. AIG’s more thorough underwriting process takes longer but often results in better outcomes for complex cases that require specialized evaluation.
Are both companies financially stable enough for long-term coverage?
Direct answer: Yes, both companies maintain strong financial stability ratings and have demonstrated consistent performance over decades.
North American Company holds A+ ratings from A.M. Best and has operated successfully for nearly 140 years. AIG maintains A ratings from major rating agencies and has successfully navigated various economic challenges, including their post-2008 restructuring. Both companies demonstrate the financial strength necessary for long-term life insurance commitments, with the choice between them rarely coming down to financial stability concerns.
Which company is better for someone with a complex medical history?
Direct answer: AIG typically provides better outcomes for applicants with complex medical histories due to their specialized underwriting expertise.
AIG’s underwriters have extensive experience evaluating unusual medical situations and often find ways to provide coverage when other carriers might decline applications. Their international experience includes handling medical conditions and treatments that may be less familiar to domestic-focused underwriters. North American Company handles standard medical conditions well but may be less competitive for complex or unusual health situations.
Should I work with an agent to compare these companies?
Direct answer: Yes, working with an experienced agent typically results in better carrier selection and more favorable terms for your specific situation.
Independent agents who work with both carriers understand the nuances of each company’s underwriting preferences and can match your specific profile with the carrier most likely to provide favorable terms. They can also navigate the application process more efficiently and often secure better rate classifications through their carrier relationships. This is particularly valuable when comparing carriers with different strengths and specializations.
How do these companies compare for no-exam life insurance?
Direct answer: North American Company typically offers more competitive no-exam options with higher coverage limits, while AIG’s no-exam products are more limited.
North American Company has invested significantly in simplified underwriting technology and offers no-exam coverage up to substantial amounts for qualified applicants. Their streamlined approach makes them competitive in the growing no-exam market segment. AIG offers no-exam products but with more conservative coverage limits and stricter qualification requirements, focusing more on their traditional fully-underwritten products.
Important Disclaimers
This comparison provides general information about AIG and North American Company life insurance products and should not be considered specific insurance advice. Rates, availability, and terms vary based on individual circumstances, health status, and underwriting decisions. Always consult with licensed insurance professionals and review actual policy documents for complete coverage details. Product offerings and company ratings may change over time.
