AIG

AIG Guaranteed Issue Life Insurance Pro's & Con's

By James Tobin, CFP®

Critical Takeaways

  • Instant issue policy with no exam
  • 2 Year waiting period before policy will eligible to  pay full Death  benefit.
  • Because there is no health underwriting rate are higher than  other types of policies.

AIG


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Disclosure

Please note the Life Insurance Help Desk is not in any way affiliated with AIG. This article is our personal review of the Guaranteed Issue life insurance product offered through AIG, as well as alternatives. If you are looking to contact AIG directly, call them at (888) 517-797. If you are looking for a lost policy try the NAIC policy locator service.

Expert Review Of  AIG Guaranteed Issue Life Insurance

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Reviewed by

Jim Tobin, CFP®

Why you can Have confidence in this review

At Life Insurance Help Desk, we value our editorial independence. We keep our reviews strictly factual so you can use them to make informed decisions. Life insurance carriers referred to on this site do not approve reviews. 

Are you thinking of buying a guaranteed issue life insurance policy from AIG? In this review, we’ll look into the history of the company, its financial products, offerings, ratings, underwriting niches, alternatives, and pricing details to provide a comprehensive understanding of whether it’s right for your needs or not.

We’ve given a 2.5-star rating to AIG’s guaranteed issue policies. However, that’s not because there’s something wrong with AIG. As a matter of fact, AIG has the best possible guaranteed issue insurance policy you can find today. However, we’re just reluctant to rate it any higher than that, considering that there are many better alternatives to guaranteed issue insurance policies.

AIG Guaranteed Issue Whole Life Insurance Details

AIG’s burial insurance coverage policy happens to be a guaranteed issue whole life insurance plan . No medical underwriting or health questionnaires are required to qualify for this policy.

You’re eligible for the policy, regardless of your health condition.

Like all whole life policies, the following is true: 

It remains in effect unless the premiums aren’t being paid

Premiums remain the same throughout your lifetime

No expiration date for the policy, irrespective of your actual age

Coverage amounts are never decreased.

Features of AIG Burial Insurance Policy

Burial insurance policies from AIG do have coverage limits, which is generally dictated by the state you’re located in.

Issue Age Group: 50 – 85

Listed Face Value - $5,000 - $25,000

States Covered: All 50 States and DC, excluding NY.

Waiting Period: Minimum of 2 years

Where to Purchase – AIG Direct or independent insurance agencies (Prices are the same regardless of the route you choose)

Yes, There is a Waiting Period (2 Years)

As it’s a guaranteed acceptance policy, you’ll need to wait for  2 years before you can qualify for benefits from the insurance company in the event of your death.

All guaranteed issue burial insurance policies, irrespective of the insurance company, have a minimum waiting period of two years.

Should you die within the first 2 years, the insurance company will reimburse all insurance premiums paid to date with an interest component of 10%. After 2 years, the company will pay out full death benefits, regardless of the actual cause of death.

However, the 2-year waiting period is not applicable to accidental deaths. If the death takes place as a result of a legitimate accident, complete benefits will be paid to beneficiaries, even if the 2-year waiting period had not yet been completed.

Living Benefits Feature With AIG Guaranteed Issue

One of the benefits of obtaining guaranteed life insurance from AIG is that it’s the only burial issue carrier whose policies offer living benefits.

Do note that these benefits may vary, depending on your location.

You can add two riders to your insurance policies without any additional costs, which are:

Chronic Illness Rider: If the insured party has been afflicted with a major chronic sickness, they may be entitled to a lumpsum payment. However, sufficient proof must be submitted of their inability to carry out a minimum of 2 out of 6 daily living activities.

Terminal Illness Riders: People with a diagnosed terminal illness that has reduced their remaining lifespan to 2 years or less can submit proof of their diagnosis as certified by a competent physician to avail 50% of all death benefits. However, this rider is only active after the 2-year waiting period.

Only AIG provides a living benefits rider on their guaranteed issue insurance product.

Guaranteed Issue Whole Life Insurance Rates From AIG

Here are some examples of the insurance rates of guaranteed issue products from AIG. 

    FEMALE RATES

Age

$5,000

$10,000

$15.000

$20,000

$25,000

50

$18.92

$35.83

$52.74

$69.66

86.57

55

20.93

39.86

58.78

77.71

96.64

60

23.57

45.14

66.70

88.27

109.84

65

28.26

54.51

80.76

107.02

133.27

70

36.21

70.41

104.62

138.83

173.03

75

48.91

95.82

142.73

189.63

236.54

80

68.56

135.12

201.69

268.25

334.81

85

103.10

204.20

305.31

406.41

507.50

     Male Rates

Age

$5,000

$10,000

$15.000

$20,000

$25,000

50

$26.96

$51.92

$76.89

$101.85

$126.81

55

$29.25

$56.50

$83.74

$110.99

$138.24

60

$32.58

$63.17

$93.75

$124.33

$154.92

65

$37.55

$73.09

$108.64

$144.18

$179.73

70

$47.57

$93.14

$138.71

$184.28

$229.85

75

$63.25

$124.49

$185.74

$246.98

$308.23

80

$88.57

$175.15

$261.72

$348.30

$434.87

85

$150.43

$298.86

$447.30

$595.73

$744.16

When Is It A Great Idea To Purchase This Policy From AIG?

Personally, I don’t recommend purchasing this policy from AIG. Though AIG does have the most feature-rich and affordable guaranteed issue policy available in the market today, there are much better policies you can opt for than guaranteed issue policies. There are only a few situations where a guaranteed insurance policy from AIG is a viable option.

Applicants with these conditions are better off with a policy from AIG. Consider signing up immediately in case you have one of these health conditions:

  • A terminal illness with your life expectancy below two years
  • Heart or circulatory surgery in the last 1 year
  • ALS
  • Congestive heart failure or diabetes
  • Underwent amputation surgery due to diabetes in the last 24 months
  • Insulin shock or diabetic coma in the last 24 months
  • Heart attack instance in the last 12 months
  • Underwent cancer treatment in the last 24 months
  • Alzheimer’s or dementia or other such memory conditions
  • Dialysis
  • History of organ transplantation
  • CVA major stroke episode in the last 12 months
  • HIV or AIDS
  • Currently residing in a nursing home, hospice care, hospital, or medical facility

People who have not suffered from any of the conditions mentioned above are advised not to go for an AIG guaranteed issue policy – there are many other viable alternatives

AIG Carrier Details

American General Life Insurance Company or AIG was founded in 1888. They have been issuing insurance plans for over a century.

They operate in all American states including DC. They have branches in over 80 jurisdictions & countries.

A.M. Best has awarded them an A+ rating.

Address:  9640 Granite Ridge Drive, Suite 200
San Diego, CA 92123

Phone: (888) 517-797

Web:https://www.aigdirect.com

                                     


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