If you have people that you care about in your life, then it is likely that you need life insurance. That’s because the proceeds from life insurance coverage may be used by loved ones and survivors for many different purposes, such as paying off debt, continuing to pay ongoing living expenses, and/or for keeping promises such as ensuring that a child or a grandchild has the funds that they need to attend college in the future.
But before you purchase life insurance coverage, there are some important factors that you need to keep in mind. For instance, you need to be moving forward with the proper type and amount of protection. You will also want to ensure that the insurance carrier that you’re considering purchasing the policy through is financially stable and that it pays out its claims to policyholders. One insurer that meets these parameters is American General Life Insurance Company.
The History of American General Life Insurance Company
American General Life Insurance Company is a subsidiary of AIG (American International Group). For over a century and a half, American General has been providing wealth enhancement and protection products to its customers.
Throughout the years, American General has grown nationally and internationally, and today American General and AIG are considered to be one of the largest insurance and financial services entities in the world.
AIG has more than 88 million customers who are located in over 130 different countries around the globe. In 2014, the company earned more than $64 billion in revenue – and by year-end 2016, it had approximately $200 billion in total admitted assets, with net operating earnings in 2016 of almost $700 million.
American General Life Insurance Review
American General Life Insurance Company offers a wide range of products and services to its customers. It does so under various brand names, such as:
- American General Life Companies
- Western National
The company was comprised of numerous divisions that made up American General Life Insurance Company. These include American General Assurance, American General Life Insurance of Delaware, American General Life and Accident Insurance, SunAmerica Life Insurance, SunAmerica Annuity and Life Assurance, and Western National Life Insurance. All are now simply referred to as American General Life Insurance Company.
During the economic recession of 2008, AIG suffered some financial setbacks, and in turn, this large insurance and financial services conglomerate had to collateralize its securities with more assets. During this time, the company also fell into default, after which the U.S. government stepped in to help with a “bailout.”
The company has, however, come back strong. In just the past five years alone, the member life insurance carriers of AIG have cumulatively paid out more than $40 billion in benefits and claims to its individual and business policyholders.
Over time, American General has earned numerous awards and accolades, including the receipt of the ACE (Achievement in Customer Excellence) award from Confirmit – which recognizes companies’ outstanding achievements in customer excellence.
Insurer Ratings and Better Business Bureau Grade
Due in large part to its financial strength and stability, as well as its timely payment of customer claims, American General Life Insurance Company has excellent ratings from all of the major insurer ratings agencies, including the grade of “A” or better from all.
Also, while American International Group is not an accredited business through the Better Business Bureau (BBB), they have a grade of A+ from the BBB – which is on a scale of A+ to F.
Over the past three years, American International Group (AIG) has resolved 68 customer complaints (of which 31 have been closed out within the past 12 months). Of these 68 complaints, 41 were about their products or services, another 14 were related to billing and/or collection issues, 6 were related to guarantee / warranty issues, 5 had to do with delivery issues, and the remaining 2 were in relation to advertising and/or sales issues.
Life Insurance Products Offered by American General
American General Life Insurance Company offers a variety of different life insurance coverage options to choose from, they are term and permanent. And, coverage is geared for individuals / families, as well as for businesses.
With term life, there is death benefit protection only, with no cash value build up – and because of that, term life insurance can frequently cost less than a comparable permanent life insurance policy (all other factors being equal). This is particularly true if the applicant for coverage is in decent health when they apply.
As its name suggests, term life insurance is purchased for a set time, fifteen years, twenty years, or even for thirty years. American General offers two types of term coverage. These include the AG Select-A-Term, and the AG ROP (return of premium) Select-A-Term.
With the AG Select-A-Term plan, applicants for coverage can opt for a duration (or term) of ten years, as well as other “customized” time lengths that exceed 15 years – up to 30 years in duration. Because of this, a policyholder won’t have to pay for coverage that he or she does not need.
As an example, if an individual has a 20-year home mortgage that they want to make sure is paid off if the unthinkable occurs, they can purchase a term life insurance plan from American General with a 20-year duration (as versus a set plan that has a period of 30 years).
With the AG Select-A-Term policy, the policyholder can also convert the policy into a permanent life insurance plan. That way, they will have coverage for the remainder of their lifetime (provided that the premium is paid). The term life insurance policy may be covered up until the insured is age 70.
The AG ROP (return of premium) term life insurance coverage option is similar to the regular AG Select-A-Term, except that the insured may be able to receive back the premium that they paid in if he or she lives through the coverage period.
There are many permanent life insurance policies that are offered through American General, too. With permanent life insurance, there is both a death benefit and a cash value component of the policy.
Unlike term life insurance, which can be purchased for covering a specific financial obligation such as mortgage payoff, permanent coverage is designed to last for the lifetime of the insured. In addition, the cash value will build tax-deferred.
Because of that, permanent life insurance policies are often used as financial planning tools that can serve many more purposes than just simply paying out a death benefit. For example, the cash value may be used for paying off debt, supplementing retirement income, or even for taking a nice vacation.
Through American General Life Insurance Company, there are many different permanent life insurance policies available. These include the following:
- Elite Global Plus ll – The Elite Global Plus ll is an indexed universal life insurance policy that has the return of the cash value based on the performance of an underlying market index, such as the D&P 500. If the underlying index performs well in a given year, then the return on the cash value is credited – up to a certain stated “cap.” If, however, the return on the underlying index is negative during a given year, then the return on the cash value is credited with a 0%. Therefore, while there is no gain, there will also be no loss, which can provide the policyholder with safety of principal.
- AG Secure Survivor GUL ll – With the AG Secure Survivor GUL ll, applicants who are 50 – 75 can be sure that their survivors and loved ones are taken care of financially. This is a universal life insurance policy, meaning that there is a minimum death benefit, as well as cash value. Within certain guidelines, the policyholder may be able to change the due date of his or her premium. They may also be able to decide how much of their premium payment goes towards the policy’s death benefit, and how much gets put in the cash value section.
- Secure Lifetime GUL 3 – The Secure Lifetime GUL 3 is also a universal life insurance policy. Here, too, the policyholder may be able to modify his or her policy premiums with certain parameters.
- Asset Protector – With the Asset Protector, coupled with the Secure Lifetime GUL 3, the policyholder will obtain added benefit, such as the ability to access the funds in the death benefit for needs during his or her life (such as expenses that are related to a terminal illness, and / or confinement to a nursing home).
- Value+ IUL – While the Value+ IUL is technically an indexed universal life insurance policy, this plan has a key focus on death benefit protection, with the growth of the cash value taking place later in the policy’s life.
- Elite Index ll – Another indexed universal life policy option that is available through American General is the Elite Index ll. In addition to having a focus on growth of the cash value, the policyholder may also be able to access death benefit funds for various health care and/or nursing home needs.
- Elite Survivor Index ll – With the Elite Survivor Index ll – a universal life insurance policy option – the policyholder will have a variety of different interest crediting alternatives to choose from for the cash value growth. This can help to better “customize” the plan to meet specific needs.
Other Products and Services Available
In addition to the term and permanent life insurance policy options that are available through American General Life Insurance Company, there are other products offered as well. These include retirement annuities.
Today, because people are (on average) living longer, running out of income in retirement is a key concern. An annuity can help with alleviating this concern, as these products offer the opportunity to receive an income payout for life.
How to Get the Best Premium Quotes on Life Insurance with American General
If you want to get the best premium rates on life insurance with American General Life Insurance Company – or through any top life insurer – it is typically recommended that you work with an independent broker. Maybe American General offers the best plan for you, but maybe they don’t. We can give you the answer to that.
If, after reviewing our website, you still have questions, please feel free to reach out to us directly via phone. Our experts are available to walk you through different scenarios that will help you with your concerns. We can be reached toll-free by calling 888-836-7071.