AIG (American General Life) Lowers Premium Rates On Term Insurance- Good Option for 2016
In an effort to remain more competitive in 2016, AIG-American General Life lowered the rates on their term life insurance. AIG had raised their rates in 2012, but to regain market share, lowered them in the first quarter of 2013.
How Competitive Is AIG?
With the rate reduction, their premiums now rank among the best in the industry for certain segments, especially on coverage amounts of $500,000 and up, and on the 20 and 30-year term.
44-year-old male, premier (preferred plus) health class, $500,0000 is $50.76 month, closely behind SBLI which has a monthly rate of $47.85 month.
44-year-old male, regular (standard) health class, $500,0000 is $95.76 month, which is the lowest rate in the country.
Is AIG (American General Life) Safe?
Yes. AIG-American General is “A” rated excellent by A.M. Best and “A+” rated strong rated by S&P. They had of course their issues with the financial crisis in 2008, but that was a different entity from their life insurance company. American General has always remained highly rated. Last year, I wrote a five-figure paid up permanent policy for a very well to do client who is a manger in the financial industry, showing his great confidence in AIG and that the fact they will be around for a LONG time.
I personally like working with AIG-American Generals underwriters and think they’re a great company. They have some of the best if not the best diabetic underwriting guidelines and rates, as well as some of the lowest substandard prices in the country. Now, with the rate reduction, they’re very competitive on the larger face amounts and longer term products. Also, AIG is a company people recognize and are familiar with, as opposed to many of the other less known companies in the market. However, for many, AIG still hasn’t shaken off the stigma from the bailout of 2008. Even though AIG has paid back all the money they were lent, plus interest, some people still just don’t want to do business with a company that received bailout money. If that is not an issue for you, I would recommend AIG if they have the lowest rates on your quote. I even have my policy with them.
See how AIG (American General) compares with the other top companies-rates and ratings