David Austin Photography Blog: AIG Life Insurance Company Review

American Insurance Group, also known as AIG, is considered to be the world’s largest insurance organization. The company has approximately 88 million customers worldwide – both personal and business – including those in the area of life insurance, property casualty, mortgage insurance, retirement services, and aircraft leasing. The company has in excess of 64,000 employees who work in over 90 different countries. Need help finding other forms of coverage, such as burial insurance, auto insurance or health insurance, we can help you find the best companies for your needs.

In 2013, AIG had revenues that exceeded $68.5 billion dollars, and it is estimated that just the firm’s property and casualty division alone pays out approximately $100 million in claims each and every business day.

AIG began nearly 100 years ago back in 1919, when Cornelius Vander Starr started a general insurance agency called American Asiatic Underwriters. The company actually had its beginnings in China, however, in the 1930s, the company expanded its operations into Latin America.

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Throughout the years, the insurer further expanded to new markets around the globe, including Germany and Japan, and eventually in the 1950s, it continued its move to the United States via the acquisition of a general insurer.

Throughout the years, AIG expanded into additional product lines – and in the 1970s, the company introduced new transportation, energy, and entertainment product lines in order to serve the needs of various specialized industries.

In the 1980s, the firm further expanded, listing its shares on the New York Stock Exchange (NYSE), and expanding its business lines even further to include mortgage insurance. By the early 2000s, AIG was a leading provider of life insurance and retirement products in the United States. However, by the time the global financial crisis hit in 2008 and 2009, AIG was struggling, and the U.S. government stepped in to support the company.

Over the past several years, AIG has been able to restructure itself – as well as to fully repay its financial assistance from the United States government. It has also been able to re-launch its product and service brand in the insurance and financial marketplace.

Products Offered by AIG

AIG offers a wide range of products and services to both the individual and business markets. In the individual market, insurance coverage products that can be found through AIG include the following:

Accident and Health Insurance – Accidental death and dismemberment insurance can help to offset the financial burden that is faced when a loved one passes away suddenly and unexpectedly in an accident. This type of coverage will typically pay out an additional sum of money if the insured’s death is due to an accident, as versus sickness or other natural causes.
Term Life Insurance – Term policies will cover an individual for a set amount of time, such as for 10 years, 15 years, 20 years, or even 30 years. In most cases, term life insurance is very affordable coverage – especially if the insured is young and in relatively good health when applying for coverage. If you are not in the best health and feel that a no medical exam life insurance policy would be best for you, we can help find the carrier to best suit your needs. This is because term life provides only pure death benefit protection, without any type of cash value build up. Term life insurance can be a great way to obtain a high amount of coverage for a low premium cost.
Whole Life Insurance – Whole life is a form of permanent protection. This type of coverage provides a death benefit, along with a cash value component. As its name implies, whole policies are designed to cover an insured for the “whole” of his or her life. This means that, as long as the premium is paid, the coverage will remain in force. The cash value that is associated with a whole life policy is allowed to grow on a tax deferred basis – meaning that there is no tax due on the gain until the time of withdrawal. This can essentially allow the funds to grow and compound exponentially over time. The whole policy holder is allowed to withdraw or borrow cash from the cash value component for any need that he or she sees fit. It is important to note, though, that any unpaid balance at the insured’s death will go against the amount of the death benefit that is paid out to the beneficiary.
Universal Life Insurance – Universal life insurance allows policy holders both death benefit and cash value – however, these policies are much more flexible than whole life in that policy holders can choose when to pay their premiums, as well as how much to pay. (This can, however, affect the amount of the death benefit and the cash value within the policy).
Variable Universal Life Insurance – Variable Universal Life Insurance also provides flexible premiums and death benefits like regular universal life insurance policies do. However, the cash value in a variable universal life plan will be tied to the performance of underlying market “subaccounts.” This can make these policies more risky, however, they may also be able to obtain more growth than regular universal life or whole life policies.
Index Universal Life Insurance – With an Index Universal policy, the policy holder will also obtain both death benefit protection and cash value. The cash value’s growth will be based upon the movement of an underlying market index such as the S&P 500 or the DJIA (Dow Jones Industrial Average).
Annuities – AIG also provides a variety of different annuities for those who are either in or approaching retirement. These include fixed, variable, and index annuities. Annuities can provide a great way to set aside money for retirement. They can also provide income for retirees – and, depending on the income option that is chosen, they may provide an income that cannot be outlived by the recipient.
Mutual Funds – AIG offers a variety of mutual funds as well. These funds can offer a way to invest in a diversified mix of stocks, bonds, and / or other professionally managed investments with different focuses, depending on the goal, risk tolerance, and time horizon of the investor.

AIG’s Ratings

AIG holds high ratings from the insurance company ratings agencies. These include the following:

Rating Agency	Rating	Rating Description	Definition
Standard & Poor’s	A+	Strong	A company that is rated as A has strong financial characteristics. However, it is somewhat more likely to be affected by adverse business conditions than are insurers that posses higher ratings.
Moody’s Investor Service	A2	Good	Insurers that have A ratings provide Good financial security, however, elements may be present, which suggest a susceptibility to impairment at some time in the future.
A.M. Best	A	Excellent	A ratings are given to companies that have, in the opinion of A.M. Best, an Excellent ability to meet their ongoing insurance obligations.
Fitch	A+	Strong	A+ rated insurers denote a low expectation of ceased or interrupted payments. They indicate Strong capacity to meet policy holder and contract obligations. This capacity may, nonetheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.

Considering AIG

Although AIG does offer a nice array of products, and the company has good ratings from the insurer ratings agencies, there are some factors to consider prior to moving forward with applying for coverage through this insurer, as there are a few areas where the company falls short.

First, for applicants who have various types of adverse health conditions, it may be more difficult to be approved by AIG for coverage. Unfortunately, this can be frustrating – especially if you’ve gone through the long application process, undergone the medical exam, and waited for several weeks for your policy application results.

How and Where to Obtain the Best Life Insurance Coverage

In order to obtain the best coverage for your needs – regardless of your health condition – it is always best to first make comparisons. Any time you are making a major purchase, you want to ensure that you are getting the very best deal – and the same holds true with life insurance. After all, this is a product that you will be counting on to protect those that you love for the long term – so you want it to be the best.

When you’re ready to compare policies, benefits, and premium quotes, we’re here to help. We work with many of the top carriers in the market place today, and we can get you all of the information that you need quickly and conveniently. We can also answer any additional questions that you may have.

If you’re ready to begin seeking the policy and the premium that will work best for your specific needs, just simply use the form on this page.

Purchasing life insurance is a big decision – and you want to have all of your information in place before moving forward, but not making this purchase is a mistake that can hurt your loved ones. So make sure to get this important part of your financial plan taken care of immediately.

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