There are diverse insurance policies on the market today, most of which are intended to ensure the maximization of your golden years.
We are not just talking about whole life insurance policies that would help your loved ones live a more comfortable life after your demise or maybe pay off debts.
Still, the kind of life insurance policy whose claims would be paid out within days of your demise to help with the funeral planning – this is the burial and final expense insurance.
If you are a senior and don’t have one of these policies yet, now would be the perfect time to get one.
The death benefits from this policy would cater to the funeral costs and any other associated costs. This allows your loved ones time to grieve your passing without having to worry about the financial cost of laying you to rest.
In this article, we’re shedding light on one of the most popular insurers and their burial & final expense insurance products.
While there have been a large number of companies that offer burial and final expense insurance products, AIG stands out as the most reputable company that you may want to work with.
As you search for the best insurance company to work with, AIG might be on your radar, and this article will help you determine the suitability of the insurance company and the products offered.
So, let’s take a look at AIG and what they have to offer. At the end of it, you should be able to determine whether AIG would be your preferred insurance partner or not. So, let’s jump right into it!
Overview of AIG Company
AIG (AIG Direct), or American International Group, started off as a small insurance agency in 1919 in Shanghai, China.
It was established by an American Entrepreneur called Cornelius Vander Starr, and in the few years after its establishment, the company had significant growth throughout China before its expansion to the rest of the world. In 1926, AIG opened its first office in New York, and this office still stands to date.
Notably, AIG also opened its first offices in Japan and Germany in the mid-1940s, after World War II, a move that was at the time aimed at ensuring that the United States Military members would access insurance.
Over the years, AIG has not only increased its presence across the world, mostly through mergers and acquisitions, but they’ve also been able to increase their products range through the addition of new products to its overall mix.
Their entrepreneurial spirit and growth have seen them earn numerous accolades and awards through the years. Some of these awards and accolades include the World’s Top 50 Performer (an award earned four years in a row) and the Business Insurance Innovation Awards Winner won in 2016 and the previous six years.
The awards notwithstanding, AIG insurance is one of the largest insurance companies in the world, a recognition that was made possible by their wide range of financial and insurance solutions that are extended to businesses and individual customers.
Our focus is on the personal insurance products offered by the company, specifically, the burial and final expense life insurance products.
But first, can you trust AIG to pay up insurance claims when the time comes?
As one of the largest insurers offering the best of life insurance products and a wide array of policy options for you to consider, AIG is also top-rated by A.M. Best Rating, and the received A+ rating means that the company is financially sound, and they would be able to underwrite among the largest insurance policies sought after by their customers.
Customers are also mostly happy with AIG because they offer insurance policy options to match every budget and every need.
AIG’s firm financial footing is also proven by their A+ rating from S&P, A+ rating by Fitch Ratings, and the A2 rating by Moody’s Investor Service.
On top of these companies. AIG is also BBB (Better Business Bureau) rated, and this leading rating company rates AIG as an A+ company. The only catch is that the company isn’t BBB-accredited just yet.
Regarding their ability to handle customer needs and complaints, AIG has successfully settled at least 66 complaints from customers, and in the past 12 months, they were able to resolve 29 of these complaints.
These complaints range from the products & services offered by the company to billing/collection problems, delivery, and warranty issues.
Generally, AIG is rated as Excellent (5/5) under the policy features categories, their qualification processes, financial strength, and their customer experiences.
So, you will be happy to know that AIG will be able to sort you and guide you appropriately.
Which Burial and Final Expense Insurance Products does AIG offer?
To meet the needs of their clientele, AIG Direct offers comprehensive final expense and burial insurance products that match the needs of all their clients.
Their main insurance policy in this category is the guaranteed issue life insurance that offers a maximum coverage value of $25,000.
Guaranteed Issue Whole Life Insurance
This policy is also known as the Guaranteed Acceptance Whole Life Insurance cover. It is the best of final expense insurance covers offered by AIG, and it’s intended to cover burial costs, as well as other funeral expenses.
Since it is a guaranteed policy, it means that the insurance company’s agents will not ask health questions or run any medical underwriting processes to determine your eligibility. With this policy, your acceptance of the policy is guaranteed.
As a type of whole life policy, this product works relatively straightforward. Some of the perks associated with this coverage include the fact that the insurance coverage amount will not decrease, the policy doesn’t expire, the set premiums at the time of application remain unchanged throughout your life.
The policy is only canceled in case of non-payment (which takes effect only after the allowed grace period).
Also, AIG doesn’t set up rules regarding the use of the death benefits; which means that in as much as the general idea behind the policy means that the funeral home would take the case, this policy still allows your family to use the death benefits to pay for different end of life expenses, debts, etc. Any money left over can be used whichever way your loved ones deem fit.
So, what are the features of the Guaranteed Issue Whole Life Final Expense Insurance cover?
- For starters, the final expense insurance cover by AIG is available in all 50 states, except for the state of New York.
- It is suitable for applicants aged 50-85 years
- It comes with a 2-year waiting period
- The face value of the insurance policy ranges from $5,000 to $25,000.
To access this policy, you’d have to buy from AIG directly or from any of the independent insurance agencies around.
Generally, the rates for the final expense insurance policy start from $20/monthly for female applicants and $29/month for male applicants; either applicant aged 50 years, and only for the insurance policy with a face value of $5,000.
Thanks to the remarkable financial standing of AIG, this company will process claim applications fast, and you will be happy to know that as long as the 2-year waiting period has lapsed, your loved ones will access the full value of the insurance policy purchased.
Before the two years lapse, the insurer only pays an equivalent of the premiums contributed, plus a small discount. The only time a full death benefit is paid before the lapse of the waiting period is where the death of the policyholder is accidental.
Final Expense Coverage benefits
Here are the main benefits that are associated with AIG’s Final Expense Insurance Cover
- Guaranteed Acceptance – this means that signing up for or buying this insurance product will give you permanent insurance protection to last your lifetime. Also, you’d automatically qualify for the insurance cover, and applicants are not really turned down.
- No medical examinations or health questions are asked/ required as prerequisites for the approval of your application – this is the other advantage of the guaranteed issue life insurance product.
Traditionally, the need for medical exams and having to answer health questions would significantly increase your life insurance cost, but this is not the case with the guaranteed insurance covers. The only limiting factor here would be the 2-year waiting period, which actually makes sense.
- The maximum coverage amount is $25,000 – the other advantage of the policy is that it comes with a $25,000 maximum cover, which should be more than enough to cover your funeral and burial costs. But if your budget is smaller, the company offers a minimum coverage of $5,000.
- Living Benefits
Essentially, the living benefits are the additional benefits that the insurance company offers to ensure an enhancement of your quality of life in case you are burdened years down the road.
AIG understands that it would be almost impossible for you to service your policy if you fall seriously ill, and to lift the weight, they offer what they call living benefits that would help you live a healthier life.
This is approved when an illness strikes and you are unable to perform simple tasks or if you need financial help with medical costs after receiving a diagnosis for a critical illness.
In addition to the guaranteed approval of your final expense insurance policy applies if you are aged 50-85, the company also offers some of the best living benefits to its policyholders. These benefits are offered at no extra cost, and they include:
Terminal illness – with this living benefit, you would enjoy up to 50% of the total applicable death benefits value during the policy’s time of acceleration.
AIG regards terminal illnesses as the physical conditions or illnesses that have been certified by a licensed physician to possibly result in the death of the insured within the first 24 months after the illness is certified. This benefit ensures that your medical bills from the illness are not crippling.
Chronic Illnesses – this is the other advantage of this final expense policy. Thanks to this benefit, policyholders will enjoy a reprieve in the form of the full premiums paid being returned to the policyholders after its determined that the insured can no longer perform a minimum of 2 out of the 6 activities that are considered ‘activities for daily living.
For example, dressing, continence, bathing, toileting, transferring, or eating). This benefit also takes effect if the insured receives a severe cognitive impairment diagnosis such as dementia or Alzheimer’s.
These benefits are also called insurance riders,
- Guaranteed Level payments for the life insurance product
The other advantage of this insurance product has to be the fact that the premiums remain level after the application is approved. With the fixed premiums, you can plan your finances well without worrying about the premiums increasing during the life of the policy.
- Ideal insurance product for seniors
If you are above the age of 50 but below 85, this product by AIG is the perfect product for you, especially because you will not be turned down because of any health problems that may crop up.
Pros & Cons
- No medical exams or health questions to answer
- You are guaranteed approval of the policy
- Suitable for seniors aged 50-80
- It comes with living benefits for terminal and chronic illnesses
- They offer high coverage amounts
- Free insurance riders
- AIG receives significantly more complaints than other insurance companies
- They have poor rankings in pricing and customer service
- No online quotes offered
What is Graded Death Benefit Life Insurance?
A graded death benefit is a common term in the world of life insurance. It is particularly common with Guaranteed Issue Whole Life insurance.
The graded-level benefits refer to the 2-year waiting period during which the death benefits may or may not be paid in full if the insured dies. In the case of a natural death or accidental death, the graded death benefit means that the insurer will pay between 110% and 120% of the total paid insurance premiums.
In case of an accident, the death benefit payout equals the policy’s face value. But for all insured persons, the full value of the insurance cover is paid if death happens 2 years after buying the policy.
This graded benefit feature in guaranteed whole life insurance is an important product for individuals looking for permanent life insurance coverage, but they don’t qualify for any other type of permanent whole life insurance options because of specific health concerns.
So, because guaranteed insurance means the automatic approval of the application, even with an underlying medical condition, the 2-years waiting period, hence the graded death benefit policy, ensures that the insurance company has some form of protection for itself.
How Does AIG Life Insurance Compare to Other Life Insurance?
Well, AIG offers a wide range of insurance products, a feature that makes them a highly sought-after brand.
If you are looking for the best universal life or term insurance options, then AIG’s strong financial standing makes this company an ideal fit for you, thanks to its wide variety of insurance products.
In addition to the wide range of products, AIG also offers living benefits with their Guaranteed Issue While Life Policy which is available to most applicants because of the no medical exams or health questions policy.
While many other insurance companies offer final expense insurance covers, they don’t provide Guaranteed Issue covers, which makes AIG a much better insurer for you.
Keep in mind that the simplified issue life policy offered by many other companies is not the same as the Guaranteed Issue, and there are some caveats to the approval of your application.
A comparison of AIG and TransAmerica Final expense Guaranteed Issue insurance products, for example, shows that the two companies offer comparably similar products, with the main differences being the fact that AIG’s maximum coverage is half that offered by TransAmerica who also give the policy to individuals aged 0-80, unlike AIG’s age gap of 50-85 years.
How to Get the Best Premium Rates on Life Insurance Coverage Through AIG
While the insurance rates and products sold by AIG are not the cheapest on the market, there is a flexible variety for you to choose from.
To access the best rates, talk to the insurance company directly, or you could seek the help of an independent insurance company.
A good state of health is important, and if you are a non-smoker, you will pay considerably less than you would pay at competing insurance companies.
How to Sell AIG’s Final Expense Product?
You could contact an independent agent like AIG Direct for the best deals and make sure that the details of the transferred policy are accurate. You should consult AIG’s agents too.
AIG’s Guaranteed Issue Life Insurance is one of the best policies offered by the company to applicants looking for final expense and burial insurance products that don’t require medical exams or answered health questions for approval.
This policy is reasonably priced, and though it is graded with a 2-year waiting period, policyholders also get to enjoy living benefits in case of chronic or terminal illness diagnosis.