American General Life Insurance Company Review (Recommended)
American General Life Insurance Company is a well-known brand in the insurance and financial services industry.
But, how does it compare to other companies offering similar products?
What industry ratings has the company earned?
These types of questions are frequently asked by consumers when comparing the company’s rates and products to those of other insurers.
American General Life
In our experience, American General Life is a high quality and highly rated insurer, offering a diverse portfolio of insurance products and services to consumers. This article, American General Life Insurance Company Review, provides insight into company financials, industry ratings, product portfolio, premium rates, and other considerations when selecting the best life insurance companies.
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American General Life Insurance Company
American General Life Insurance Company, based in Houston, Texas is a member of the American International Group (AIG). The company has offered quality life, accident, health, and other insurance products since 1960.
American General’s parent organization, American International Group (AIG) was founded in 1919 and has since established itself as a global leader in the insurance and financial services industry.
As of 2017, AIG financial highlights included organizational assets of $498.3 billion, with total revenue of $49.5billion. This included life and retirement premiums and deposits of $27.4billion for the fiscal year. Given AIG’s asset base and diverse product portfolio, the organization continues to be a significant provider of insurance and financial services products worldwide. From a human capital standpoint, AIG employs nearly 50,000 team members through its global operations.
According to AIG leadership, “looking ahead, our strategy is clear – we will continue to position AIG as a growing, profitable leader in the insurance industry, known for being a top-performing underwriter, with the best talent, armed with the best tools and technology, and working across a global footprint.”
American General Life Insurance Ratings
In the financial services industry, a company’s ratings serve as a “report card” of the organization’s fiscal stability and overall ability to meet both current and future financial obligations. These ratings can be extremely important to consider when purchasing insurance products with the intention of providing financial security for those you care about the most. Rating services considered insurance industry standards include A.M. Best, Standard & Poor’s, Moody’s, and Fitch. AIG life insurer ratings are as follows from the perspective rating agencies.
AIG Life Ratings
Source: AIG, 2020
American General Life Insurance Products
As a key player in the life insurance market, it makes sense that the company would offer a diverse and robust product portfolio.
In an ever-evolving marketplace, American General Life continues to provide life insurance and other financial products designed to meet the needs of their core consumers. The company’s product portfolio includes the following.
Term Life Insurance – Term life insurance provides protection for a specified period or term. This type of life insurance does not typically accumulate cash value and is often initially less expensive than other policy types.
Term life coverage can be a great fit for an individual who needs temporary life insurance coverage, such as income protection, mortgage protection, or other obligations with a specific time horizon.
American General Life Insurance Company’s term products offer coverage ranges from $50,000 to $1,000,000 and is unique in that consumers can select a specific term of 10 years, from 15 to 30, or 35 years. This allows clients the flexibility to structure their policy to meet future financial goals and milestones without paying for unneeded coverage.
Universal Life Insurance – Universal life insurance provides flexible long-term protection which can be adjusted to meet changing coverage needs over time. This type of life insurance can provide lifetime coverage and potential cash value accumulation.
Universal life coverage is a great option for those who need long-term life insurance protection and the flexibility to adapt coverage based on life changes.
The company’s universal life products range from Guaranteed Universal Life, providing guaranteed lifetime coverage, to Indexed Universal Life, offering cash value accumulation tied to market index performance, as well as Variable Universal Life providing clients separate account investment options.
Variable Universal Life Insurance – Variable universal life insurance, like traditional universal life, provides flexible long-term protection but differs in that it allows for investment in selected separate accounts. This type of life insurance can also provide lifetime coverage and potential cash value accumulation.
Variable universal life coverage can be an option to consider for individuals who have a need for long-term life insurance protection and are interested in cash value accumulation through equity investments. It is important to note that with this type of policy’s cash surrender value is not guaranteed and will fluctuate based on the market value of the separate accounts.
Guaranteed Issue Whole Life Insurance – Guaranteed issue whole life insurance provides lifetime protection with guaranteed approval regardless of medical history. This type of policy offers lifetime coverage with smaller face amounts at surprisingly affordable rates.
Guaranteed issue whole life can be a great fit for those who are unable to qualify for traditional life insurance and need a smaller amount of permanent coverage for final expenses such as funeral costs, medical bills, and other obligations.
American General Life Insurance Company’s guaranteed issue whole life offers coverage ranges from $5,000 to $25,000 for those between ages 50 and 85, with guaranteed acceptance. This type of policy allows clients who are otherwise uninsurable to obtain affordable lifetime life insurance coverage. It is important to note that with this type of policy, the death benefit is graded and does not pay the full face amount until year three.
Accidental Death & Dismemberment Insurance – Accidental death and dismemberment insurance provides coverage in the event of an accident causing death or dismemberment. This type of insurance is surprisingly simple and extremely affordable.
Accidental death and dismemberment coverage can be ideal for individuals who want quick accident-only coverage or need to supplement a high-deductible health plan.
The company’s accidental death and dismemberment product offers a quick and easy way for clients to secure accident-only coverage, and acceptance is guaranteed for those age 18 to 80.
American General Life Insurance Rates
In comparing premium rates within the life insurance arena, there are consistently a handful of familiar companies that offer the best value to consumers. American General Life Insurance Company is one of those organizations. In running rate comparisons for prospective clients, American General Life is routinely within the top five or so carriers offering the most affordable premiums. And, in many instances, the difference can be only a matter of a few cents. The following sample rates are provided as an example of American General Life insurance premiums for the level term products.
Sample American General Life Rates
Note: Sample rates provided are based on rate information at the time of publication and are subject to change without notice. Company underwriting makes the final decision concerning rate class and/or policy approval.
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James Shiver is the founder of ChoiceLifeQuote.com and a multi-state licensed independent life insurance agent serving the individual family and small-business markets. Dr. Shiver also serves as a university business professor, as well as being an Accredited Financial Counselor®.