Sometimes, a company must endure turmoil to show both its shareholders and its consumers it has the resolve and the perseverance to stand the test of of time. American General Life Insurance Company did just that, as it required more than its own resources to survive; yet, it thrives once again.
Today, it’s considered one of the best life insurance companies in America.
In this American General Life Insurance Company review, we’ll be showcasing one of the stronger term life insurance carriers in the marketplace, and a competitor who provides excellent products, prices and personal service. As we always recommend, thoroughly investigate any company you choose to place your business with, and use our quote tool to shop rates from more than 40 companies.
Our American General Life Insurance Company Review for 2017
Almost 100 years old now, American General Life Insurance Company (also known as AIG) went into business in 1919 with the former name American Asiatic Underwriters. But it was founded in China, not the United States, where it wouldn’t be formed until nearly a decade later. While it didn’t begin its original state as a life insurer, it added the arm just two years after it was started.
AIG grew both nationally and internationally, with business operations in the United States, Asia and Europe. By 1984, AIG made the move to list shares of its company on the NYSE, where it continues to be sold under the ticker of, well, you guessed it, AIG.
While the turn of the new millennium saw fantastic growth for American General, it wasn’t flawless as there was a great dispute with the SEC which cost AIG one and a quarter million dollars in addition to regulatory maintenance. Things got worse in ’05 when an accounting scandal made headliners, costing AIG $1.6B in fines.
In 2008, AIG found itself in yet another bind as the collateralized debt obligations they had against their securities suddenly sparked a decline in value. This meant AIG was forced to collateralize those securities with even more assets, of which it was running out. AIG felt into default, and the United State Government had to step into aid. This aid would run the reserve a tab of $85 billion.
Over the span of more than five years, AIG would recover its losses and pay back its loans to the Federal Reserve, but not without hardship, restructuring and a re-branding, and even selling off different divisions of its business.
American General’s Financials and Ratings
Today, American General Life Insurance Company stands strong among the many giant insurers, with strong financial ratings from all four major ratings institutions, including Standard & Poor’s, A.M. Best, Fitch and Moody’s.
With an “A” or better rating from all, this means the current stability and solvency of AIG is top notch, and the future is optimistic.
Life Insurance Products From AIG
American General offers several different types of life insurance products which are durable and competitive in the market place.
It offers term life insurance products for middle American and small businesses, it offers universal life insurance which is more permanent and offering flexibility to those who need it, and it even has an indexed and variable universal life insurance products for those seeking cash growth.
Within the term product line from American General, there are two types, the AG Select-A-Term and the AG ROP Select-A-Term, which is a return of premium policy.
The AG Select-A-Term is a straight term life insurance policy with durations of 10 years, or any length from 15 through years. In other words, unlike most other carriers who have term, they don’t have a 22 year or 27 year term like American General Life does. This is a huge advantage for those seeking exact term lengths to match obligations.
The policy is also fully convertible for as long as the level term duration, or until the insured is 70 years of age (whichever is first). Many other companies limit conversion opportunities to the first ten years.
The AG ROP Select-A-Term is a similar product, with the provisions to allow a return of premium (100% tax free) for those who reach the end of their term and opt not to convert or keep their policy.
Universal & Indexed Universal Products
With seven different individual universal product choices, AIG will most definitely have what you’re looking for. Here is what American General offers:
- AG Secure Survivor GUL II®
- Elite Global Plus II®
- Secure Lifetime GUL 3®
- Elite Index II®
- Asset Protector®
- Value+ IUL
- Elite Survivor Index II®
AG Secure Survivor GUL II
This policy is specifically tailored to aid those aged 50 – 75 to help safe guard assets or satisfy business continuation plans by minimizing taxes. It is a guaranteed universal life insurance product, which grants a minimum level death benefit for as long as the policy is in force.
Elite Global Plus II
The Elite Global Plus II is constructed with the intent to help the insured accumulate cash value while protecting them with the death benefit of life insurance. Cash growth is strictly based on the performance of the indices allowed by the policy, like the Hang Seng Index, EURO STOXX 50 Index, or S&P 500.
Secure Lifetime GUL 3
American General’s Lifetime GUL 3 is the most straightforward universal life insurance contract available, offering the benefits of a level death benefit and possibility of cash growth. As with other GUL products in the marketplace, there is some allowance for the insured to modify their premiums, when needed.
Elite Index II
AIG presents the simplest of its IUL’s in the Elite Index II, an indexed universal life product with all the upsides of growth you would expect in an IUL, and downside protection to keep your money safe and secure, all while providing a death benefit. A special benefit is access to death benefit should chronic illness or terminal illness occur.
Available for the existing GUL 3 product, American General Life Insurance Company’s Asset Protector adds extra policy benefits, like early use of the death benefit to pay for illnesses, even before the insured has passed. This would apply to those afflicted with chronic illnesses, or even extended access for insureds over the age of 85.
For those looking for simpler solutions to meet death benefit gaps using an IUL, AIG’s Value+ IUL is the right choice. With a focus on death benefit and protection only, policy cash growth is set aside to allow greater help with both personal and even business expenses down the road.
Elite Survivor Index II
American General also recognizes different people prefer different styles of policies for their different aversions to risk, so they’ve offered the Elite Survivor Index II, which boasts multiple options for the policy holder to choose from. The three different interest-crediting options allow the insured to select the best construction to meet their life insurance goals.
Variable Universal Option
The AG Platinum Choice VUL is for those who understand the risk of the utilizing the variable nature of mutual funds to more aggressively pursue growth within their life insurance policy. Consumers must deal with a registered representative in order to gain access.
With the fortitude and trust the carrier has gained over decades, it still remains one of the best life insurance companies in the United States. It employs a high standard of ethics and aims to satisfy the needs of its consumers through innovation and leadership.
With great rates, a wide selection of products, and a vast network of agents, American General Life Insurance Company is a top provider.
|Company Name (and Subsidiaries)||American International Group, Inc.
American General Life Insurance Company
The United States Life Insurance Company in the City of New York
AIG Property Casualty
AIG Life and Retirement
|Company Ratings||A.M. Best (A)
Moody’s Investors Services (A2)
Standard & Poor’s (A+)
|Headquarters (Address, Phone, Web)||175 Water Street
New York, NY 10038
Phone: (212) 770-7000
|Policy Types Available||Term