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American General Life Insurance Company Review

Jeff Rose, CFP® | September 02, 2021

American General Life Insurance Company, in conjunction with its parent company, American International Group (AIG), has more than 160 years of background in the life insurance and financial industry. Over this period, this insurer has paid out more than $39 billion in insurance claims.

Throughout the years, American General has provided insurance coverage, as well as various financial and investment solutions to customers in the United States, as well as all over the globe. American General Life Insurance is now a part of American International Group or AIG.

Today, this company is considered to be one of the largest financial and insurance companies in the world. In 2014, it brought in more than $64 billion in revenue.

The company currently has more than 88 million customers in 130 different countries. The insurer employs more than 64,000 individuals in 90 countries.

American General Life Insurance Review

american general life insurance company reviewAs of March 2016, American International Group has total admitted assets of nearly $200 billion. The company also invests its assets well in order to ensure safety, security, and the ongoing ability to meet its financial demands.

For example, nearly 92 percent of the firm’s total assets are invested in fixed income or cash. Within this category, the company’s fixed income investments are very well diversified, with nearly 93 percent of these rated as investment grade.

American General’s overall mission is to be the premier provider of protection, investment, and income solutions that are needed for both financial and retirement security. As a part of the American International Group’s network, American General has a wide reach in obtaining and servicing its clients.

It offers a wide array of various protection, income, and investment solutions – which can assist its clients in growing and protecting their wealth. American General Life Insurance Company’s products and services are offered via a large network of more than 300,000 affiliated and independent financial advisors who are united via the AIG Financial Distributors network. This is one of the largest networks of independent financial professionals in the United States. The company has its international headquarters in New York City, New York.

The company is also considered to offer stellar service to its customers and policyholders. For instance, the company’s industry-leading technology – which includes e-submission and e-signature capabilities and its “Forms Depot” system – can provide individuals with the tools that are needed to get business transacted both quickly and very efficiently.

American General’s Ratings and BBB Grade

  • A+ (Strong) from Standard & Poor’s
  • A2 (Good) from Moody’s Investor Services
  • A (Excellent) from A.M. Best
  • A+ (Strong) from Fitch

Life Insurance Options

American General Life Insurance Company/American International Group prides itself on offering one of the largest – and most innovative – product portfolios in the entire insurance and financial services industry.

Although many of this company’s competitors have been forced to discontinue offering various products, this firm understands that individuals and families need to have access to a complete array of tools to be successful. With that in mind, the company works hard to keep such products available. In the life insurance niche alone, the company has more than 12 million customers.

American General offers a wide variety of different life insurance products, including term and permanent life insurance coverage – which can allow its customers to pick and choose from the coverage that will suit them the very best.

With term life insurance, an individual is protected for a time frame, such as 10, 20, 25, or even 30. Typically, the insurance protection and the premium rate are locked in during this time.

Term life offers only pure death benefit protection only. Because of that, these policies can often be quite an affordable way of obtaining a large amount of insurance coverage for a low premium price. This is especially true when the insured is younger and in good health. Affordable life insurance for smokers while harder to find is still out there.

Permanent life insurance has both a cash value component and the death benefit protection. This type of life insurance coverage can last throughout the insured’s lifetime – provided that the premium is paid. The premiums for permanent life insurance are typically guaranteed not to increase over time – even as the insured ages, or if they contract an adverse health issue.

The cash that is inside of a permanent life insurance policy can grow on a tax-deferred basis. This means that there are no taxes due over time as the amount grows. This can allow exponential growth of cash value. These funds can be used by the policyholder for any reason.

American General Life Insurance Company offers several different term life products. These include a one-year level term plan, as well as its Select-a-Term life insurance policy. With the Select-a-Term Policy, the insured may be able to surrender the policy and get their paid-in premiums returned to them if they lived through the whole time frame of this policy.

There are also several different types of permanent life insurance coverage provided. One of these is whole life insurance. This type of life insurance coverage will provide a death benefit, as well as a cash value that will grow, based on a certain percentage of interest each year that is set by the insurance carrier.

The company also offers a variable life insurance option. Here, there is also a death benefit and a cash value component. The cash value performance is dependent on how an underlying “sub account” based on equities performs. While this type of plan can offer the opportunity for large returns, it can also present a fair amount of risk due to the market volatility. Therefore, in considering variable life insurance, it is important to have a good idea of one’s overall risk tolerance first.

For permanent life insurance protection, American General offers indexed universal life coverage. These policies provide both death benefit protection, as well as a cash value build up. 

If the index performs well during a certain time period, then the cash value will be credited with a positive percentage – up to a stated cap. If however, the underlying market index suffers a negative return in a given year, then the policy holder’s cash is protected, and the account is simply credited with a 0% return of that year. So, while this will not result in a gain for that period, it will also not result in a loss.

The company is committed to the guaranteed universal life insurance market, for both the short- and the long-term time horizon. It also plans to maintain a robust portfolio of additional products and services, while it effectively manages products in the current low-interest rate environment.

Other Coverage and Products Provided

American General/AIG continues to communicate with its customers and agents to identify opportunities for additional products to help keep pace with both changing demographics, as well as with the evolving needs of the marketplace.

In addition to life insurance coverage, other products, and services are available via American General/AIG include the following:

  • Retirement Annuities
  • Accident and Supplemental Health Insurance
  • Income Protection
  • Retirement planning programs
  • Key Person Insurance
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About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion - educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.


Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University - Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® - Accredited Asset Management Specialist - and CRPC® - Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia's distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC's Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

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Table of Contents
  • American General Life Insurance Review
  • American General's Ratings and BBB Grade
  • Life Insurance Options
  • Other Coverage and Products Provided

Insurance Resources

  • Best Life Insurance Companies
  • Best Car Insurance Companies
  • Cheap Car Insurance
  • Best Car Insurance For Young Adults
  • Best Homeowners Insurance
  • Best Disability Insurance Companies
  • Best Home Warranties
  • How Much Does $1M Life Insurance Cost?
  • Types Of Life Insurance Policies Explained
  • Life Insurance Over 50
  • Life Insurance Over 80
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