AIG Vs Foresters Financial: Who Has The Best Burial Insurance Policies in 2021?

AIG Vs. Foresters Financial: Who Has The Best Burial Insurance Policies

Wondering why you need to buy a burial insurance policy and whether it’s worth it? Unsure of the differences between the burial insurance policy and the normal life insurance policy?

This article sheds light on everything you need to know about burial insurance, and most importantly, the differences between the burial insurance policies offered by AIG and Foresters insurance companies.

This information is important because, usually, the average cost of insurance has gone up significantly over the past few decades. For most of the typical funerals today, your loved one would be expected to spend an average of about $10,000, depending on the state you live in and the burial preferences you leave your loved ones within your last will and testament.

In addition to the funeral and burial costs, you’d also have to put into consideration other financial costs such as debts that may still be under your name by the time of your demise. With a good financial plan that includes a burial insurance policy, your loved ones get to give you a good send-off.

As per your wishes, they are able to offset extra costs that could be unaccounted for, and if you have active debts, the burial insurance policy payout will go a long way in settling these debts.

What is Burial Insurance?

What is Burial Insurance?
Burial Insurance

Burial insurance can be defined as a financial (insurance) tool that helps your loved ones to easily pay off your financial expenses, as well as credit card debt, hospital bills, and funeral home expenses, among others.

However, note that despite the burial insurance policy being regarded as a separate insurance product, it is basically a small life insurance policy that the expenses that an individual leaves behind after they die. This insurance policy is also referred to as the funeral insurance policy, or the final expense insurance policy, an affordable and excellent insurance option that helps families after one passes.

With the basics out of the way, let’s now take a look at the burial insurance policies offered by AIG and Foresters Financial and how the policies offered by the two companies differ from each other.

AIG and Foresters Financial Burial Insurance policies Overview

AIG Burial Insurance Policy Overview

Established in 1926, AIG is one of the most popular insurance policies on the market, and it’s rated the 8th largest life insurance company across the US. AIG boasts an A+ Superior rating for its financial strength, a rating received from AM Best.

Besides the strong financial rating that makes the insurer one of the best options if you want a reputable company as your business partner, AIG is also regarded as one of the best life insurers because it offers one of the best term life insurance policies on the market for seniors.

The company also offers different types of term insurance policies for seniors up to 80 years old. At the same time, the company also offers living benefits through the company’s unique range of products under the QOL (Quality of Life) insurance products range.

Remember, AIG’s term insurance products are available in 18 different term lengths, with the longest term being up to 35 years. While AIG’s term life policies could be purchased until one reaches 80 years, the products by policyholders until they reach 70 years.

The other impressive product offered by AIG is the Quality of Life Flex Term Policy, which offers living benefits. What this means is that you would be able to access a percentage of the death benefits value in case you are diagnosed with a terminal, chronic, or critical illness.

You might also like the structuring of the insurance plans because anyone can sign up for a final expense insurance policy, with no medical exams or health questions asked, with an age limit of 85 years, and death benefits maximum of $25,000.

That said, it’s important to note that while AIG offers its permanent life insurance plans for individuals aged up to 80 years, their whole life insurance policy’s coverage is up to 100 years. They also provide options for universal life policy covers.

Foresters Financial Burial Insurance policies Overview

Foresters Financials is a large conglomerate of businesses that not only offers some of the best life and burial insurance policies but also boasts an impressive portfolio of financial and investment management services. Their services (and offices) are spread across the biggest cities in the world, a success feature made possible by the company’s over 140 years of existence.

It’s received an A Excellent rating for its financial strength from A.M Best, which points to the company’s consistency in financial stability. The company is also BBB accredited by the BBB (Better Business Bureau), and it has an A+ rating.

In addition to the largely positive ratings, Foresters Financial also boasts some of the best burial insurance policies, with fixed premiums coverages that last up to 121 years. The company also offers three extra rides at no extra cost – these are riders for accidental death, terminal illnesses, and accelerated death coverages. A family health benefit rider is the other rider offered, and it offers an extra layer of protection/ coverage from natural disasters.

AIG and Foresters Financial company ratings

AIG boasts an A+ Superior Rating from A.M Best, which tells more about the company’s consistency in performance and also its financial strength. AIG is also a top-rated insurance company because of its ability to underwrite some of the largest insurance policies that are sought out by different clients/ customers, even while having insurance policies matching every budget.

Foresters Financial is also highly rated, with an ‘Excellent’ A rating from A.M Best; for its reputation and consistency in financial strength. Its financial stability is also shown by the fact that Foresters Financial Insurance Company is a BBB Accredited company with an A+ rating from the Better Business Bureau.

The company’s BBB was opened in 2008, but despite complaints, the reported complaints are now regarded as closed, which speaks to the company’s reliability and willingness to handle issues around their products and services, billing and collections, as well as marketing or sales issues.

AIG and Foresters Financial Coverage Options Comparison

AIG and Foresters Financial Coverage Options Comparison
AIG and Foresters Financial Coverage Options Comparison

Established in 1919, AIG insurance offers one of the best burial insurance plans for its customers. The burial insurance cover offered by AIG is referred to as the Guaranteed Issue Whole Life cover, and it’s a type of whole life insurance policy.

However, the policy comes with a 2-year waiting period, although the insurance premiums remain unchanged forever. The policy doesn’t expire, and you will be happy to note that this policy death benefit payment is a tax-free cash payment.

Regarding the coverage amount, AIG offers maximum coverage amounts of between $5,000 and $25,000; for new applicants between 50 and 85 years. However, the policies don’t include any riders, and on the bright side, your application will be approved without medical records or health questions. But if you live in Pennsylvania, Maine, or New York, you won’t access this burial insurance policy.

Foresters Financial was established in 1874. The company offers a number of burial insurance plans, with their main burial insurance product being the PlanRight Level Benefit, which comes under the company’s whole life insurance policy. Once you buy this insurance product, you will be able to enjoy fixed monthly premiums that stay forever for as long as you pay the monthly premiums, and also, the policy stays active forever, and you won’t have to worry about it expiring. Also, it’s not a graded insurance product, which means that there is no 2-year waiting period. The policy is only subject to underwriting approval.

This policy is available in all 50 states; the coverage amount varies from $5,000 to $35,000, with death benefits given variable depending on the policyholder’s age. Speaking of age, the coverage for this policy is open to new applicants between 50 and 85 years. It also comes with an optional accidental death rider.

If you are a caregiver, child, or grandchild looking to purchase this policy for your parents, you will be happy to know that you can do it easily, as long as you have their consent.

Premiums paid for the policy are also variable depending on age, with the minimum insurance payable by females and males aged 50 for the $10,000 coverage being $26.05 and $32.00, respectively. $165.92 and $200.75 for the same policy if you are male and female aged 85 years, respectively. Once issues, the policy won’t end when you turn 85 years, as it lasts forever. The 85 years’ limit is only the maximum age limit for new applicants.

Foresters Financial burial insurance policy is approved without a requirement for medical exams, and they also offer the guaranteed acceptance policy; no questions asked. This company offers three riders at no cost too.

Regarding the first payment date for the insurance covers, you choose when you want to make your first payment once you complete the application.

AIG and Foresters Financial types of Policies

AIG Types of Policies

AIG Guaranteed Issue Whole Life Insurance

Unlike other insurance companies that offer a number of burial insurance covers, AIG offers one main type of burial insurance cover called the AIG Guaranteed Issue Whole Life Insurance. This is a final expense insurance coverage that covers burial and funeral expenses, among others. Your application for the policy will be approved without the need to answer any questions, and there no medical underwriting involved. As the name suggests, acceptance is guaranteed.

The other features that stand out include the fact that the value of your coverage will never decrease, the burial cover won’t just expire at any age, the premiums are fixed forever, and the only reason why the policy would be canceled is if the premiums aren’t paid. For AIG, the acceptable time-lapse after a missed payment is 45 days, unlike Foresters Financial, with a longer time-lapse period of up to 70 days.

You might also like the insurance policy. It is a whole life policy, which means that your dependents/beneficiaries will receive a tax-free check cut to them. Also, the insurer doesn’t restrict how the money is used, and they also run by the general idea that all funeral homes across the county will take up cash.

Therefore, this policy will give your loved ones just what they need to easily pay off your end of life or final expenses. If there is more money left, your loved ones can use that money whichever way they like.

AIG Guaranteed Issue Whole Life Insurance – Waiting Period

Even though the insurance policy comes with terms for guaranteed acceptance, the policy comes with a 2-year waiting period. What this means is that the death benefits are only payable after the lapse of the 2-year period. This is generally a common feature with all policies, with the waiting period being 2 years. Because of the no-health-questions setup of the policy, the waiting period is always 2 years, not 6 months or a year.

In the event of death before the lapse of the 2-year-period, AIG will fully refund the premiums paid from the beginning of the application until, plus an additional 10% interest on the premiums paid. Generally, there are no exceptions to this rule, but AIG offers just one exception to this 2-year waiting time – this exception is only applicable if one dies from an accident before the lapse of the 2 year period. AIG will payout the full value of the insurance policy in case of accidental death, in any form (car accident, fall from a tree, plane crash, etc.).

AIG Guaranteed Issue Whole Life Insurance – Living Benefits

One of the things that stands out from AIG’s Guaranteed Issue Whole Life Insurance is the fact that AIG is the only insurer carrier offering this guaranteed policy, along with living benefits. These living benefits or riders include the terminal illness rider (available in all states except in the Washington State of District Columbia, and the rider for chronic illnesses.

The terminal illness rider is offered at the lapse of the 2-year waiting period, and the policyholders can access as much as 50% of the insurance coverage’s death value in case of a terminal illness diagnosis where you have received a diagnosis that gives you 24 months or less to live.

The chronic illness rider, on the other hand, allows for a one-time payoff (in a lump sum) for the policyholders that become chronically ill and are unable to perform at least 2 out of 6 daily tasks.

The impressive bit is that you wouldn’t have to pay additional fees for these living benefits riders.

AIG Guaranteed Issue Whole Life Insurance – Living Benefits

The rates charged for this insurance policy depend on your exact age, gender, the face value selected, as well as the state that you reside in. 

While the policies offered range from a face value of $5,000 to $25,000, you only get to buy the policy in whole numbers.

For females aged 50, the premiums payable include $18.92 per month for the $5,000 policy and a maximum of $86.57 for the $25,000 policy. At 85 years, you’d pay a minimum of $103.10 and $507.51 for the $5,000 and $25,000 policies, respectively.

For males aged 50, the premiums charged monthly are $26.96 and $126.81 for $5,000 and $25,000 policies, respectively. 85-year-old males, on the other hand, pay $150.43 and $744.16 for the $5,000 and $25,000 policies, respectively.

Foresters Financial Types of Policies

The burial insurance cover by Foresters Financial is dubbed the PlanRight Policy. It is a type of whole life policy that comes with a guaranteed minimum cash value. The guaranteed minimum means that the policyholder earns that minimum amount for your premiums, for as long as you pay your premiums on time.

Also, the cash value of this policy will go up or down depending on the interest rates, but since the premiums remain unchanged, you get to easily budget your finances. 

The thing that stands out from this policy is that the insurance policy remains in place until you reach 121 years. In the event of your death, your named beneficiaries won’t have to pay any income taxes on your policy’s death benefits.

That said, there are three main types of insurance covers offered under this plan – the level, graded, and modified death benefits.

  1. The level death benefits coverage is one of the most popular coverage plans since it doesn’t have any timelines for when the benefits are paid. The policy’s premiums are fixed, and the full death benefits will be paid regardless of when you pass away. However, you can’t qualify for this policy if you have serious health concerns.
  2. The graded death benefits, on the other hand, comes with a graded plan in which the full death benefits are only payable if you pass away after the 2-year waiting period. If you pass on before the 2 year period lapses, your beneficiaries will receive the full value of the premiums paid to that date, plus the interest rate offered by the company. So, why choose this policy? Well, while most people would argue that the terms are not the friendliest, this policy is often a good option for individuals who haven’t had most of the other types of policies approved.
  3. The last option is the modified death benefit. This policy is more like the graded death benefits policy in that it comes with a 2-year waiting period, but unlike the graded option mentioned above, this modified version is more ideal for persons with more serious health issues. Unlike the other plans, the maximum age for the modified plan is 80 years, while the age limit for the other plans is 84 years.

Out of these three policies, the modified plan covers the highest risk level while the level plans cover low-risk individuals.

AIG and Foresters Financial types of Policies – Rates

Foresters Financial burial insurance plans for non-smoking males aged 50 looking for a policy with a $15,000 face value will pay $53.72, $87.18, and $88.20 in monthly premiums for the level, graded life, and modified life policies, respectively. Non-smoking females at the same age will pay lower monthly premiums of $37.50, $54.02, and $54.18 for the level, graded life, and modified life plans, respectively.

At 85 years, you’d access the level policy at $299.55 and $247.30 for males and females, respectively. The graded policy has a maximum face value of $10,000, with a minimum of $2,000.

That said, the premiums charged for smokers are significantly higher than what’s charged for non-smokers.

AIG and Foresters Financial Customer Reviews

AIG might boast a top-rating, but their reviews and consumer complaints are a little inconsistent. On the other hand, Foresters Financial has received their equal share of complaints, but according to BBB, the 24 complaints launched and noted by BBBB have all been resolved and closed, which shows the company’s willingness to resolve issues.

AIG and Forest Financial Pros and Cons

Pros and Cons: AIG and Foresters Financial
Pros and Cons: AIG and Foresters Financial

AIG – Pros

  • Excellent coverage options
  • Covers accessible to individuals between 50 and 85 years
  • Low premium rates
  • Available in all US states, except New York
  • Easy application process
  • Fast approval and strong benefits under the accelerated death policy
  • Chronic and terminal illness riders available


  • The 2-year waiting period is unfriendly
  • Customer services delivery could be better
  • You must talk to an agent

Foresters Financial Pros and Cons


  • Fixed premiums
  • Long coverage period up to 121 years
  • 3 Extra riders at no extra cost
  • The level benefit plan is affordable, and also a low-risk plan


  • You must speak to an agent for quotes
  • Unavailable in Oregon
  • Modified benefits plan isn’t accessible to persons aged 80 years or older


AIG and Foresters Financial are leading companies that you could opt to work with if you are looking for burial insurance. They offer great options for insurance policy coverage, generous death benefits, and they are well-rated by third-party companies such as AM Best and BBB. If you are looking at these two companies, we’d recommend settling on the plans offered by AIG – the guaranteed issue plan comes with affordable premiums, the application is guaranteed, and it comes with optional riders.