If you are searching for a customizable term life plan with competitive rates, you may want to consider AIG and its Select-a-Term, term life insurance plans. AIG offers an entirely digital application process with flexible policy options and multiple contract lengths to meet your life insurance needs.
Term insurance is often recommended for young families and individuals who want to provide for their loved ones without committing to a costly permanent life insurance plan. Instead, you typically choose from standard contract lengths of either 10, 15, 20, or 30 years with the goal of your contract lasting long enough until you no longer need life insurance protection.
Regardless of the contract length you choose, your premium payments are always locked-in for the entire length of the contract. That means your rates can never increase while your term insurance policy is active. So even if you were to experience a change in health after buying a policy suddenly, your rates remain the same.
However, AIG offers something a little more than the standard contract lengths of 10, 20, and 30 years. With 18 different contract lengths to choose from, including a 35-year term duration, AIG term life insurance plans give you way more options for building a policy that suits your needs.
While we are confident that AIG can offer a solid term life insurance plan capable of meeting the financial needs that require life insurance protection, their term insurance policy may not be the perfect solution for everyone.
Before choosing a life insurance policy, you should always compare your options. Take the time to examine the details of each policy, including the contract lengths, policy riders, and eligibility requirements.
Our AIG term life insurance review will give you a complete look at the features of this policy so you can make a more informed choice.
AIG Life Insurance Company
AIG Life Insurance Company has a history that goes back over 100 years. In 1919, Cornelius Vander Starr established American Asiatic Underwriters (AAU) in Shanghai. The company would eventually expand across the globe and relocate its headquarters to New York City.
AAU became American International Group, Inc. (AIG) in 1967. Throughout the decades, AIG has remained at the forefront of innovation in the insurance industry. The company launched one of the first cyber security insurance protection programs in 1999 and continues to use the latest technologies to better serve its clients.
AIG has also acquired companies over the years. After acquiring Sun America in 1999, AIG went on to acquire American General Corporation, Travel Guard, Laya Healthcare, Ellipse, and Validus Holdings.
According to the latest rankings from AM Best, AIG Life Insurance Company is ranked the 5th largest company out of the top 200 US health and life insurers based on admitted assets.
AIG Financial Ratings and Reviews
Along with exploring the history of insurance companies, you should understand their financial outlook. Strong financial ratings let you know that a company will likely be around to fulfill any claims on insurance policies. AM Best and other independent agencies rank the financial stability of insurers.
Here is a closer look at the latest ratings for AIG Life Insurance:
- AM Best: A (Excellent)
- S&P Global Ratings: A+ (Strong)
- Moody’s Investor Services: A2 (Stable)
- Fitch: A+ (Stable)
AIG has high ratings. As the ratings measure a company’s claims-paying ability and financial strength, these scores should give you peace of mind. However, ratings are subject to change as they are reviewed annually.
AIG also has an A- rating from the Better Business Bureau (BBB). The BBB rating reflects a company’s ability to resolve customer disputes. The A- rating indicates that AIG is committed to addressing complaints.
AIG Term Life Insurance: Select-a-Term
AIG term life insurance plans are designed to give consumers greater flexibility in protecting their loved ones for the length of time needed. AIG calls its term life insurance product “Select-A-Term,” which includes the widest selection of contract lengths.
AIG term life insurance features:
- Competitive term insurance rates
- 18 different term lengths (including a 35-year option)
- Fully convertible to permanent life insurance coverage
- Minimum $100,000 death benefit
- Three optional policy riders
- Includes a terminal illness rider
Before choosing Select-a-Term life insurance, you should ensure that it meets your needs. Let’s examine the full details of what you get with term life insurance from AIG.
AIG Select-a-Term Overview
| Policy Features | Select-a-Term |
|---|---|
| Issue Ages: | 20-80 |
| Contract Options: | 10-Year: 20-80 (20-75 tobacco users) 15-Year: 20-75 (20-70 tobacco users) 16-Year: 20-70 17-Year: 20-70 18-Year: 20-70 (20-69 tobacco users) 19-Year: 20-70 (20-67 tobacco users) 20-Year: 20-70 (20-65 tobacco users) 21-Year: 20-68 (20-63 tobacco users) 22-Year: 20-67 (20-62 tobacco users) 23-Year: 20-66 (20-61 tobacco users) 24-Year: 20-64 (20-59 tobacco users) 25-Year: 20-63 (20-58 tobacco users) 26-Year: 20-62 (20-57 tobacco users) 27-Year: 20-60 (20-55 tobacco users) 28-Year: 20-59 (20-54 tobacco users) 29-Year: 20-58 (20-53 tobacco users) 30-Year: 20-55 (20-50 tobacco users) 35-Year: 20-45 (20-40 tobacco users) |
| Coverage Amounts: | Minimum amount: $100,000 Maximum amount: $1,000,000+ |
| Policy Riders: | Accidental Death Benefit (Optional) Child Term Rider (Optional) Terminal Illness Rider (Included) Waiver of Premium Rider (Optional) |
| Renewability: | Renewable to age 95 |
| Conversion Option: | Convertible up to age 70 |
| Medical Exam Requirements: | Medical exam is required to apply for coverage. |
| State Availability: | Available in all states |
Issue Ages
| AIG Select-a-Term: Issue Ages | |
|---|---|
| 20-80 |
AIG Select-a-Term offers term insurance plans to individuals between the ages of 20 and 80 (75 for current tobacco users). As with all term insurance plans, longer contract lengths and current tobacco users will have lower age limits for available contract options.
Contract Options
| AIG Select-a-Term: Contract Options | |
|---|---|
| 10, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30 and 35 Years |
What makes AIG term life insurance unique and different from its competitors are the available contract lengths in which Select-a-Term is available.
Most insurers offer term insurance contracts based on five-year increments of 10- 15-, 20-, 25-, or 30-years. Select-a-Term is available in 18 different options to choose from, including a 35-year contract option.
- 10-Year: 20-80 (20-75 tobacco users)
- 15-Year: 20-75 (20-70 tobacco users)
- 16-Year: 20-70
- 17-Year: 20-70
- 18-Year: 20-70 (20-69 tobacco users)
- 19-Year: 20-70 (20-67 tobacco users)
- 20-Year: 20-70 (20-65 tobacco users)
- 21-Year: 20-68 (20-63 tobacco users)
- 22-Year: 20-67 (20-62 tobacco users)
- 23-Year: 20-66 (20-61 tobacco users)
- 24-Year: 20-64 (20-59 tobacco users)
- 25-Year: 20-63 (20-58 tobacco users)
- 26-Year: 20-62 (20-57 tobacco users)
- 27-Year: 20-60 (20-55 tobacco users)
- 28-Year: 20-59 (20-54 tobacco users)
- 29-Year: 20-58 (20-53 tobacco users)
- 30-Year: 20-55 (20-50 tobacco users)
- 35-Year: 20-45 (20-40 tobacco users)
Choosing from multiple contract options allows you to purchase the right amount of life insurance coverage for the exact length of time you need it.
Coverage Amounts
| AIG Select-a-Term: Coverage Amounts | |
|---|---|
| Minimum Amount: $100,000 Maximum Amount: $1,000,000+ |
AIG term life insurance is available in coverage amounts starting as low as $100,000. There is no maximum coverage amount, but AIG underwriting will make sure any coverage applied for meets financial justification guidelines.
For AIG to determine if the total amount of coverage being applied for meets financial justification, the underwriter will look at the insured age and annual income and base the amount being applied for off an income multiplier table.
For example, applicants under age 40 can apply for up to 25x their annual income. Applicants over 40 but under age 50 can apply for up to 20x their annual income. The older the applicant, the lesser the multiplier becomes.
However, the multipliers used by AIG are very generous, and most applicants tend not to need the max multiplier of coverage based on their age.
Policy Riders
| AIG Select-a-Term: Policy Riders | |
|---|---|
| Accidental Death Benefit (Optional) Child Term Rider (Optional) Terminal Illness Rider (Included) Waiver of Premium Rider (Optional) |
AIG Select-a-Term plans offer a total of four policy riders:
- Accidental death benefit
- Child rider
- Terminal illness rider (included at no additional cost)
- Waiver of premium rider
The accidental death benefit rider pays a death benefit on top of the death benefit of the base policy if death occurs due to accidental injuries. The maximum face value for this rider is $250,000 or the face value of the base policy. This rider must be added when applying.
The child rider allows you to obtain term insurance coverage for eligible children. You can obtain $500 to $25,000 in coverage per child. You may add or remove the child rider after the policy is issued.
The terminal illness rider is included with all Select-A-Term policies. It pays an accelerated death benefit if you are diagnosed with a terminal illness.
The waiver of premium rider is available when applying. It allows you to waive the premiums if you become totally disabled.
Renewability
| AIG Select-a-Term: Renewability | |
|---|---|
| Renewable up to age 95 |
After the level premium period ends on an AIG Select-a-Term plan, you may continue to renew the policy each year until you reach the age of 95.
Renewing an expired term insurance contract does not require you to do additional paperwork or undergo new underwriting. However, choosing to continue an expired term insurance policy will result in a much higher premium.
Should you choose to continue your term insurance coverage after the level premium contract period has ended, AIG will notify you of the new premium for the current policy year. With each new year, the cost of coverage will continue to increase.
Conversion Option
| AIG Select-a-Term: Conversion Option | |
|---|---|
| Convertible up to age 70 |
AIG Select-a-Term plans also offer a conversion option that allows for the policyholder to convert their term insurance coverage to a permanent life insurance policy provided by the American General Life Insurance Company.
The conversion option is a common policy feature offered with most term insurance plans. Choosing to convert your existing term insurance plan to permanent coverage does not require any evidence of insurability or additional underwriting.
However, the conversion must occur before you reach the age of 70, and the cost will be much more expensive than the cost of term insurance. This is primarily based on the fact that you are switching from term insurance coverage to permanent coverage, but premiums will be locked in for the entire contract period.
Medical Exam Requirements
| AIG Select-a-Term: Medical Exam Requirements | |
|---|---|
| Medical exam is required |
A paramedical exam is required for all applicants applying for an AIG term life insurance plan. ExamOne schedules the medical exam after applicants have been pre-screened by an insurance agent.
The medical exam is provided by AIG and does not cost extra. The licensed medical examiner will contact the applicant to schedule a convenient date with the applicant’s schedule to complete the exam.
Most applicants choose to have the medical exam done in the comfort of their own homes. However, if desired, medical exams can also be completed at another location, such as an applicant’s workplace or the ExamOne office.
Exams tend to take 20-30 minutes to complete. They generally consist of answering health history questions, blood and urinalysis sample, and a height and weight check.
Results are then forwarded to AIG to help aid in the underwriting process. The examiner will also provide instructions on obtaining a copy of your lab report, which will be available a few days after the medical exam has been completed.
Application Process for AIG Term Life Insurance
AIG offers a streamlined application process that typically involves the following steps:
- Receive a quote
- Speak with an agent to answer basic questions
- Complete an electronic application
- Schedule and complete a medical exam
- Wait for AIG to review your application
- Pay the initial premium and receive your policy
AIG uses a traditional underwriting process, but the application is completed entirely online. You must work with a licensed agent. The agent uses AG Quick Ticket to speed up the process.
After you receive an initial quote based on a few basic questions, your ticket is submitted to complete the application process. A paramedical exam is scheduled to assess your health and determine your premiums.
The application then goes through the standard underwriting process. You will receive notification if additional records are needed or if your application is approved.
AIG Term Life Insurance Frequently Asked Questions: Overview
Now that you know the basics of AIG term life, you likely have a few more questions about how the policy works. Here are answers to some of the most frequently asked questions about AIG Select-A-Term.
If you still have questions, please submit your inquiry using the form below the FAQ section.
Is AIG a good company?
AIG is a trusted company with over 100 years of experience in the insurance industry. American International Group and its several subsidiaries make AIG one of the largest life insurers in the world.
Although there was a concern with the insurer during the 2008 financial crisis and an AIG bailout, the insurer quickly bounced back and currently maintains high ratings for financial stability.
AIG is a good company that offers solid life insurance products. In 2020 alone, AIG ranked 16th out of the top 25 life and health insurers in the U.S. They were also ranked 8th based on total term life insurance policies sold in 2020, proving how popular the term insurance coverage has become.
What determines eligibility for AIG term life insurance coverage?
Your eligibility is determined in multiple stages. First, you need to meet the general eligibility requirements, including the age requirement. You must be between the ages of 20 and 80 and a US citizen.
Additional details that may impact your eligibility and premiums include:
- Amount of coverage
- Term length
- Your physical and mental health
- Driving record
- Criminal history
- Family medical history
- Tobacco use
- Drug or alcohol abuse
- High-risk activities or professions
Before applying, an insurance agent will help prescreen for eligibility. In addition, the agent will ask health questions to determine whether you suffer from any disqualifying health conditions, such as a recent cancer diagnosis.
An in-depth analysis of your eligibility is completed during the underwriting process. As with most insurers, AIG looks at your medical, driving, employment, and criminal records.
This information is obtained through various third parties such as the Medical Information Bureau or MIB for short, prescription database check, and your Motor Vehicle Report (MVR). Your health is also assessed during a medical exam.
Does AIG offer a paper application option?
AIG Select-a-Term is available in a paper application option if you do not wish to participate in the streamlined application process.
The paper application option will eliminate the need for the telephone interview but will add a few extra days to the underwriting timeframe allowing time for the application to be processed and assigned to an underwriter.
Is a medical exam required to apply for AIG term life insurance?
AIG requires a medical exam for all applicants applying for Select-a-Term plans. While AIG offers a streamlined application process, you still need to arrange a medical exam to become eligible for a policy.
The medical exam is always provided by AIG at no expense to the applicant. An applicant cannot use their own doctor to complete an exam or use an existing exam previously completed with their doctor.
How quickly does AIG approve its term insurance coverage?
AIG Select-a-Term typically takes two to four weeks for a healthy applicant to be approved for a policy. This is assuming the medical exam is scheduled and completed as soon as possible.
Approval times can become longer should underwriting require medical records to help assist in underwriting. In that case, the timeframe will likely take longer as it depends on how quickly the medical facility can copy and send the medical records to AIG.
What happens after you are approved for coverage?
After you are approved for coverage, the policy is delivered electronically or by mail. You can choose whether you want a digital or paper copy of the policy. You must also pay the initial premium before the policy goes into effect.
AIG also offers a policyholder dashboard where you can log in and view policy details, make payments, file claims, and request forms.
Is AIG term life insurance good for people with pre-existing health conditions?
In short, AIG term life is often a good choice for those with pre-existing health conditions. The company is relatively lenient regarding specific health issues, especially if you actively receive treatment and manage your condition.
High blood pressure, high cholesterol, obesity, anxiety, heart disease, and gastroesophageal reflux disease (GERD) do not disqualify you from obtaining coverage. AIG also offers some of the most competitive rates for tobacco users.
Select-a-Term is available for those who have received treatment for certain types of cancer or other chronic conditions. However, AIG may require additional medical screening and charge higher premiums.
Is AIG term life insurance a good mortgage protection option?
Mortgage protection is one of the reasons that AIG offers 18 different contract lengths for the Select-A-Term plan. You can customize the term duration to match the remaining years on your mortgage.
For example, if you have 17 years left on your mortgage, you can select a 17-year contract length. With most other insurers, you would need to select a 15-year or 20-year term.
Matching the contract length to the time remaining on your mortgage offers protection in the event of death. You can ensure that your loved ones can pay off the home without paying for additional coverage.
Can I own multiple AIG term life insurance policies?
Yes, you can own multiple term life policies from AIG, which is often called laddering. Laddering involves buying multiple small policies instead of one large policy.
For example, an applicant is 40 years old with a 12-year-old child and 23 years left on a mortgage. A $250,000 policy with a 13-year term would end when the child turns 25. A separate $250,000 policy with a 23-year term would cover the life of the mortgage. This would result in lower premiums compared to a single $500,000 policy with a 23-year term.
If the applicant decided to go with a separate insurer, they would likely need to choose a 25-year term, resulting in even higher premiums.
Laddering is a convenient option for those who want coverage for different scenarios or periods in their lives. AIG term life allows you to buy separate policies for each situation.
How are AIG term insurance plans compared to the competition?
AIG offers competitive term insurance rates compared to similar competitors such as Banner Life, Lincoln Financial, Transamerica, Prudential, etc. They are not number one all the time but do appear to be either in the top five for cheapest term rates or within close range of the top five majority of the time.
They are a company with a long history and various insurance options. Yet, the application process is an area where AIG shines.
AIG term life has a simplified application process than most term life products that still rely on traditional underwriting. While AIG uses standard underwriting, the application is streamlined using a digital platform.
Your agent submits your information through a digital platform instead of requiring you to meet in-person or complete lengthy phone interviews. Everything is handled electronically to save time and make the entire process more efficient.
Is AIG the only company to offer a 35-year term length?
What makes AIG Select-a-Term unique is the multiple contracts options you can choose from that other term insurance providers do not typically offer.
While AIG Select-a-Term is one of the only major life insurers to offer 18 different term length options, surprisingly, the 35-year option is offered by a few very well-known providers.
Both Banner Life and Protective Life offer a 35-year term insurance option. But, more importantly, these two insurance providers are the only two to offer a 40-year term insurance contract, the longest term contract currently available on a term insurance policy.
AIG Term Life Insurance Rate Chart
| Male | Select-a-Term 10 | Select-a-Term 15 | Select-a-Term 20 | Select-a-Term 30 |
|---|---|---|---|---|
| Age 30 | $13.78 | $14.79 | $19.54 | $31.44 |
| Age 35 | $14.16 | $16.13 | $21.14 | $35.78 |
| Age 40 | $18.62 | $21.34 | $29.38 | $50.57 |
| Age 45 | $28.90 | $36.08 | $46.65 | $79.12 |
| Age 50 | $42.50 | $54.34 | $71.43 | $127.89 |
| Age 55 | $68.85 | $86.70 | $117.30 | $232.19 |
| Age 60 | $113.05 | $144.79 | $204.42 | Not Available |
| Age 65 | $200.17 | $258.06 | $384.82 | Not Available |
| Age 70 | $317.47 | $489.60 | $856.80 | Not Available |
| Female | Select-a-Term 10 | Select-a-Term 15 | Select-a-Term 20 | Select-a-Term 30 |
| Age 30 | $11.47 | $13.17 | $16.56 | $25.92 |
| Age 35 | $12.32 | $14.83 | $17.98 | $30.18 |
| Age 40 | $16.03 | $21.25 | $25.11 | $40.89 |
| Age 45 | $24.18 | $34.12 | $37.62 | $60.89 |
| Age 50 | $34.42 | $45.47 | $56.10 | $97.23 |
| Age 55 | $52.70 | $61.20 | $89.25 | $176.02 |
| Age 60 | $78.54 | $109.85 | $142.45 | Not Available |
| Age 65 | $146.41 | $204.42 | $331.07 | Not Available |
| Age 70 | $205.00 | $331.07 | $705.15 | Not Available |
*Preferred Plus Non-Nicotine underwriting classification. Monthly Male/Female premium rates are current as of 12/14/2021, representing the cost of a $500,000 AIG Select-a-Term 10, 15, 20, and 30-year life insurance policy.
How do you get an AIG term life insurance quote?
Most independent insurance agencies offer AIG Select-a-Term insurance plans. While our company, No Medical Exam Quotes, focus on non-medical life insurance options, we also offer options that require medical exams such as AIG and their Select-a-Term plans.
We offer a convenient way to apply for and obtain AIG term life insurance. You can view rates through our online quoter and receive assistance with the electronic application process.
What is AIG Life Insurance Company’s cancellation policy?
AIG has a 10-day free look period. If you decide that you do not want your policy within the first 10 days, you can cancel it without penalty. Any premiums that you have already paid will be refunded.
You must contact AIG to cancel your policy during the free look period. To cancel by phone, call AIG customer service at 800-888-2452. You will need to provide your policy number and identifying information. A confirmation email will be sent to the email address on file.
You can also cancel your term life policy through the company’s website. After logging in to the AIG customer portal, start a live chat with customer service. Inform the representative that you want to cancel your policy and request a confirmation email.
You can also cancel a policy if you stop paying the monthly premiums. AIG cancels term life policies when customers fail to pay premiums within the 30- to 31-day grace period after the standard due date. You do not receive a refund for any premiums.
How do you contact AIG customer service?
You can contact AIG customer service via phone, mail, fax, or live chat. Here are the contact details:
- Phone: 800-888-2452
- Fax: 844-930-0370
- Mail: PO Box 818006, Cleveland, OH 44181
If you prefer to contact customer service via live chat, visit the company’s website and log in to your account. After signing in, click on the live chat icon.
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Advantages of AIG Term Life Insurance
Here are some of the advantages of choosing AIG for term life insurance:
- A strong company with a long history
- Multiple contract options
- Ability to ladder coverage
- Conversion and renewal options
- Digital application process
- Affordable rates
AIG has over 100 years of experience in the insurance industry. When you choose AIG term life, your policy is backed by a reliable company that you can trust to settle a claim if you pass before the contract ends.
AIG also gives you more flexibility compared to other insurance companies. Most term life products include several contract lengths while AIG offers 18 different periods. The contract lengths typically increase in increments of 5 years, starting with a 10-year term. AIG’s options are available in yearly increments.
For example, you can get a 21-year policy instead of a 20-year policy or a 14-year policy instead of a 15-year one. You can also purchase multiple policies, which is called laddering.
At the end of the level premium, you can convert your term life policy to a permanent life insurance policy. AIG offers both whole life and universal life policies. Whole life policies guarantee that your premiums, death benefit, and rate of return do not change throughout the life of your policy. Universal life policies also provided guaranteed premiums, but the rate of return on the accumulation of cash value varies.
Applying for AIG Select-A-Term is a relatively easy process. You need to work with an insurance agent, but the application is completed digitally. You do not need to supply physical copies of documents. However, you still need to complete a medical exam.
If the medical exam does not reveal any serious health concerns, you are likely to get good rates from AIG. The company offers affordable rates for the top underwriting classes, which are typically given to healthy individuals with no underlying health issues.
Disadvantages of AIG Term Life Insurance
AIG term life insurance offers many advantages, but you should also consider the following:
- You need to complete a medical exam
- The underwriting process may take several weeks
AIG Select-a-Term plans are not available in a non-medical exam option which is the most significant drawback. You need to complete a medical exam to receive coverage, which gives insurers an up-to-date look at your health. Any issues uncovered during the exam could impact your eligibility or increase your premiums.
Yet, if you are relatively healthy, you should not need to worry about the medical exam impacting your policy. The main issue is the inconvenience of completing a medical exam. As the underwriting process cannot begin until you complete the exam, you may need to wait longer for approval.
The underwriting process for AIG takes two to four weeks for a healthy individual. Compared to the companies that provide instant decisions, AIG’s underwriting process may seem lengthy. However, two to four weeks is still below the industry average of up to six weeks for traditional underwriting.
A medical exam and a traditional underwriting process are somewhat inconvenient, especially when multiple providers offer no medical exam or instant decision term insurance options. However, for many, these are minor disadvantages compared to the value offered by AIG.
Conclusion: Is AIG Term Life Insurance Worth it?
AIG term life offers several unique benefits that help make it a recommended choice for a wide range of consumers. Term life is often used to provide peace of mind. You want to ensure that your loved ones are taken care of and AIG term life makes this easier with its customizable term life product.
AIG allows you to purchase multiple policies. Laddering increases the level of customization by allowing you to cover specific periods of your life with separate policies.
When your level premium period ends, you can convert or renew the policy instead of letting it expire. AIG allows renewals up to the age of 95 and conversion up to the age of 70. You have more leeway when it comes to deciding on your next insurance policy.
The main drawback to AIG term life is the need for a medical exam, which increases the timeframe for approving your application. While several companies offer entirely digital application processes with instant decisions and no medical exams, you need to go through the traditional underwriting process with AIG.
In the end, AIG term life is worth it for those who want a highly customizable term life policy and do not mind completing a medical exam. If you have existing medical conditions, you may be better off with a no medical exam term life policy. However, healthy individuals are more likely to get better rates through AIG.
You can also choose from 18 different contract lengths and obtain up to $10,000,000 in coverage, depending on your age and income. Few other term life policies offer the same flexibility.
