With a wide variety of policies, fairly competitive rates across the board, and an easy application process, AIG Direct is a solid choice for most life insurance applicants.
AIG is committed to meeting people’s buying preferences, creating AIG Direct so you can skip the face-to-face agent meetings and buy a policy directly from the carrier.
Below, you’ll find a comprehensive overview of AIG, including its history, financial ratings, and products.
With this information in hand, you can make an informed decision on whether AIG makes sense for you.
Our AIG Direct Review
AIG has been in business for a century, beginning in 1919 as the American General Life Insurance Company with an origin story unique from many of its competitors.
Rather than the United States, the company’s American founder Cornelius Vander Starr set up shop in Shanghai.
In 1926, AIG opened its first U.S. office in New York City under the name American International Underwriters, moving its headquarters from Shanghai to NYC by 1929.
As it continued its expansion, the company solidified itself as an industry leader over the decades to come, launching AIG Direct in the 1990s.
By the 2000s, AIG Direct evolved into a fully online system.
While the turn of the new millennium saw fantastic growth for American General, AIG saw a series of financial setbacks over the next two decades.
AIG fell into default, and the United State Government had to step in to aid them. This aid would run the reserve a tab of $85 billion.
Over the span of several years, AIG would recover its losses and pay back its loans to the Federal Reserve, restructuring, re-branding, and selling off different divisions of its business.
Today, AIG is in excellent shape, boasting several insurance products and having helped over six million people find high-quality coverage.
AIG’s 56,400+ employees positively impact communities around the world, with tens of thousands of hours of volunteer service under its belt and millions of dollars of charitable contributions matched each year.
In 2005, Life Happens began the Life Lessons Scholarship Program to provide college scholarships to students who’ve lost a parent.
In 2018, AIG Direct participated in the Life Lessons program for the first time, awarding two scholarships, totaling $25,000.
Financial Strength & Ratings
Over the last 100 years, AIG has proven itself to be a strong and community-minded company you can depend on.
The company’s reputation is informed not just by its service to clients, but also by its impressive financial performance.
AIG has consistently received excellent ratings from the major credit rating agencies, which assess a company’s likelihood to meets its obligations by paying out claims as promised.
Since AIG Direct is a part of AIG, we can look to the parent company’s performance.
Take a look at their most recent ratings:
In addition to AIG’s financial ratings, we can also look at AIG Direct’s BBB rating.
AIG Direct is BBB-accredited and holds an “A+” rating from the organization.
Life Insurance Products From AIG
Currently, AIG offers five different types of life insurance policies.
Let’s dig in and learn about the features of each product.
AIG Direct offers level term life insurance, the most popular form of term coverage, as well as renewable term coverage.
While most term life policies come in only 5 or 10-year increments, AIG’s Select-A-Term lets you pick from 18 different term lengths ranging from 10 to 35 years.
The policy is also fully convertible for the full length of the policy, or until the insured is 70 years of age (whichever is first).
Quality of Life
AIG Direct’s QoL Flex Term Insurance combines life insurance and riders, which are supplementary benefits that grant you access to the death benefit under qualifying circumstances.
The policy’s accelerated death benefit rider kicks in if you are diagnosed with a chronic, critical, or terminal illness, as defined below:
- Chronic: You must be diagnosed in the last 12 months with a condition that prevents you from performing at least two activities of daily living such as eating, bathing, dressing, walking, or using the restroom
- Critical: Considered a severe condition with rapid onset:
- Terminal: An illness is considered terminal if your physician expects you have 24 months or less to live as a result of your diagnosis.
You can purchase a Quality of Life policy from AIG Direct with automatic living benefits or buy a universal life policy or indexed universal life policy (via American General) and add the Quality of Life benefit as a rider.
As long as you make your premium payments, your beneficiaries receive a death benefit regardless of when you pass away, with flexible premium payments and an investment component.
AIG’s Secure Lifetime GUL 3® offers a level death benefit and the possibility of cash growth.
As with other GUL products in the marketplace, you can modify premiums, when needed.
- Value+Protector: Focuses more on the death benefit and protection than growth.
- Max Accumulator+: Tied to a stock market index, this policy focuses on long-term growth.
The Platinum Choice VUL2 is best suited for those who understand the risk of using mutual funds to pursue more aggressive growth.
Consumers must deal with a registered representative in order to gain access to variable policies.
Guaranteed issue life insurance (GI), also referred to as guaranteed acceptance, is a form of permanent life insurance that comes with a guaranteed yes, regardless of your health status.
This type of no exam life insurance is usually best for those who have exhausted all other life insurance options, with higher costs and lower coverage limits.
AIG’s guaranteed policies offer up to $25,000 of coverage to applicants between ages 50 and 85.
Accidental Death & Dismemberment
Accidental death insurance (AD&D) only pays a benefit for qualifying accidents.
The living benefits of this coverage take effect if you are blinded, paralyzed, or lose a limb, with the death benefit paying out to beneficiaries if you pass away in a qualifying accident.
AIG’s AD&D policies are affordable and easy to qualify for. You cannot be turned down for an AD&D if you are in poor health or have a dangerous occupation.
AIG Direct requires you to be between the ages of 18-80 to qualify.
Applying for AIG Direct Products
AIG Direct describes its straightforward process in five simple steps.
For a traditional policy, like term life insurance, expect the following:
- Quotes: You fill out their online quoting tool.
- Phone call: Plan to participate in a call lasting about 10 minutes. You will answer health and lifestyle questions.
- Application: Complete a full application.
- Medical exam: Depending on the type of policy you are applying for, you may need to participate in a physical, lasting about 30 minutes.
- Underwriting: Underwriters will evaluate your risk based on your application. For traditional coverage, the process may take a few weeks.
As you can see, there are plenty of benefits to purchasing life insurance from AIG Direct.
To recap, here are some of the top advantages:
- Strong reputation: Since AIG Direct is a part of AIG, its financial ratings are excellent. Independent financial credit-rating organizations, including A.M. Best, Fitch, Moody’s Investor Services and Standard and Poor’s all rate AIG highly.
- Purchasing experience: AIG Direct’s policies are sold online or over the phone. Conversely, AIG sells products via life insurance agents. Whether you buy through AIG Direct or AIG, you are receiving the same AIG product. It’s all about your personal preference.
- Some no exam products: Guaranteed issue and accidental death from AIG Direct are types of no exam life insurance. AIG Direct does require you to participate in a medical exam for more traditional types of policies, like term life insurance.
While the company has notable advantages, you ultimately have to decide if AIG Direct’s products make sense for you.
Consider the following potentially negative aspects of working with AIG Direct:
- Fewer options: By applying directly with a life insurance carrier, you will not receive multiple quotes from multiple companies. On the other hand, an independent agent will have access to the top carriers.
- Medical exam: If you purchase a traditional life insurance policy, like term, from AIG, you will likely take a medical exam.
- Whole life option: While AIG Direct offers universal policies and small guaranteed issue policies, it doesn’t provide applicants with a true whole life insurance product.
AIG is one of the best life insurance carriers in the industry, consistently landing on our list of the top providers in the nation.
As a part of AIG, AIG Direct is a name you can rely on, too.
With a streamlined online system, AIG Direct seeks to simplify life insurance.
AIG Direct may be the right provider for you, but to be sure, you should compare it to a number of companies.
Getting life insurance quotes is quick, simple, and could save you thousands of dollars.