AIG Life Insurance

May 7th 2016

Overview

American International Group, Inc. (AIG) is large insurance company that is headquartered in New York. AIG has additional offices abroad in London, Paris, and Hong Kong. Until 2008, AIG was one of the largest publicly traded companies in the United States and abroad.

Since September 2008, AIG has been featured extensively in the media. After almost 100 years of operation, AIG began to fail due to an inability to meet financial obligations to creditors. The company's failure began with its lowered credit rating that resulted in a liquidity crisis. Lenders perceived AIG as a risky business, and the company could not recover through loans and additional lines of credit.

In September of 2008, the Federal Reserve Bank offered AIG a bailout of $85 billion. The government received an equity stake with AIG in return. In simple terms, taxpayer dollars are currently helping AIG maintain its daily operations as the company continues to stabilize. Since the bailout, AIG has been subject to extensive media and public scrutiny. AIG employees even started receiving hate mail and death threats.

Since the bailout, AIG has continued to offer life insurance services. Even now, the business has been unstable: the company has gone through several CEOs, is selling its subsidiaries, and is experiencing net losses. In any case, AIG's life insurance products and services remain steady.

Benefits

AIG provides flexible options for individuals and insurance brokers with services that include a comprehensive product portfolio, marketing management tools, and constant product development for a variety of plans that include Term Life Insurance, Universal Life Insurance, Variable Life Insurance, and Whole Life Insurance. Policy holders select plans that match their financial objectives. For example, people might wish to invest their death benefits, or they may wish to designate beneficiary who receives a certain amount of cash. AIG's insurance plans may be used to cover funeral expenses. Even though AIG's business is undergoing a major overhaul, its available services remain steady and reliable.

How It Works

You can think of life insurance as a contract between an insurer and a beneficiary. When the policyholder dies, the insurance company will pay the beneficiary. The policyholder can purchase or receive life insurance in a number of ways. Some companies provide options for subsidized life insurance as a benefit to employees. People might also want to purchase life insurance policies to ensure that a family remains secure and stable. You can pay for life insurance on a monthly, quarterly, and annual basis.

AIG was able to offer a wide variety of life insurance options after acquiring American General Life Companies in 2001. At the time of acquisition, American General Life Companies had operated for over 75 years. This merger positioned AIG with the ability to offer life insurance services to corporations, associations, and individuals.

AIG provides specializes in five types of services for life insurance:

  • AIG provides life insurance packages for institutions looking to buy plans for many members or employees
  • Universal Life insurance allows policyholders to change premiums and coverage amounts as life situations change. The policyholder is always covered no matter how the life insurance plan adjusts. American General will issue benefits as long as the policyholder pays the minimum premium amounts.
  • Unlike Universal Life insurance, Whole Life insurance remains the same throughout a person's life. You can plan for the amount that your beneficiaries will receive in the event of your death.
  • Term Life insurance is in place for a certain amount of time. You can select packages that keep you covered for 10 to 25 years. With Term Life insurance, you can customize your package to buy only the insurance that you need. You can avoid paying additional premiums for life insurance packages that you do not need.
  • Variable Universal Life insurance allows you to allocate your death benefit. You can choose to receive cash, or you can choose an investment package. You can also select a combination of both.

Cost/Pricing

Costs vary substantially based on individual needs and preferences. If you'd like to be insured for a greater amount, you will need to pay more. In general a $1 million policy will be more expensive than a policy for twenty thousand. If you are a company seeking to provide life insurance to employees, you can typically negotiate your rates. Your rates may vary by your company size and number of employees. If you are an individual, it is cheaper to receive subsidized life insurance by your company. Company subsidized policies can be free or of very low cost to you. If you are interested in purchasing life insurance through AIG, you should work with an agent or broker to review your options.

Timing

You can purchase a life insurance policy at any time. The best time is when people are dependent on you for money. If you are supporting a family or if you have debt with cosigners, you'll likely want to be prepared. Even if you are young, you should be responsible and assess potential financial impacts of your death. After an emergency, you do not want to leave your family or dependents suffering from additional financial burdens. Even though AIG is undergoing a major corporate overhaul, its available services are steady and reliable. If you are thinking of purchasing a plan through AIG, the best time to start your research is now.

Companies/Industries

AIG provides life insurance services through American General Life Companies. You can also learn more from AIG's corporate website.

More in category

Related Content