Purchasing life insurance can offer a way for you to ensure that your survivors and loved ones will be taken care of financially if the unexpected should occur. The proceeds from life insurance coverage can be used for many different purposes – including paying off large debts, providing an ongoing income for living expenses, or for keeping your promises, such as paying for a child or a grandchild's college education, wedding, or down payment on their first home.
When you purchase this type of coverage, there are several important criteria to keep in mind. These factors certainly include making sure that you get the right type and amount of protection. This is because you do not want to leave your heirs with less than they will need.
However, buying the right life insurance policy can also entail reviewing the insurance carrier that you are purchasing the coverage through. This is because you will want to make sure that the insurance company is strong and stable from a financial standpoint, as well as that they have a positive reputation for paying out claims to their policyholders.
One company that has been providing great insurance benefits, as well as stellar service to its clients, is American General Life Insurance Company. In purchasing life insurance coverage through this carrier, you will be obtaining more than 100 years of experience, along with peace of mind for those you love.
The History of American General Life Insurance Company
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
As 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, as well as its “Forms Depot” system – can provide individuals with the tools that are needed to get business transacted both quickly and very efficiently.
For eight years consistently, American General Life Insurance Company has been the recipient of the Achievement in Customer Excellence (ACE) award from Confirmit – which recognizes companies' outstanding achievement in customer excellence.
American General's Ratings and BBB Grade
Due to its financial strength and stability, as well as its good reputation for paying out its claims promptly to its customers and policyholders, American General Life Insurance Company/American International Group has been provided with very high ratings from the independent insurer ratings agencies. These ratings include the following:
- A+ (Strong) from Standard & Poor's. This rating shows that the company possesses strong financial security characteristics, but can also be somewhat more likely to be affected by adverse business conditions than insurers that have higher ratings.
- A2 (Good) from Moody's Investor Services. The life insurance companies that are rated with an A provide good financial security. However, elements may also be present that can suggest a susceptibility to impairment at some time in the future.
- A (Excellent) from A.M. Best. The companies that have a rating of A have an excellent ability to meet their ongoing financial obligations to their policyholders.
- A+ (Strong) from Fitch. The companies that are rated as an A have low expectation of default risk. The capacity for payment of financial commitments is considered to be strong. This capacity may, however, be somewhat more vulnerable to adverse business or economic conditions that is the case for those that have higher ratings.
Also, even though American General Life Insurance Company is not an accredited member of the Better Business Bureau (BBB), the BBB has provided this insurer with an overall grade of A- (on a grade scale of A+ through F).
More from GFC, Below
Throughout the past three years, American General has closed out a total of three customer complaints via the Better Business Bureau – one of which has been closed out within the past 12 months. Of these three total complaints, two were concerning the company's products or services, and the other centered on billing/collection issues.
Life Insurance Products Offered By American General
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. These include both 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 certain number of years, 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 pure death benefit protection only, without any cash value build up inside of the policy. 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 if the insured is young and in good health at the time of application for the coverage. Affordable life insurance for smokers while harder to find, is still out there.
Permanent life insurance offers both death benefit protection, and a cash value component. This type of life insurance coverage can last throughout the remainder of 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 an exponential growth of cash value. These funds may be either withdrawn or borrowed 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 life through the whole time frame of this policy.
There are also several different types of permanent life insurance coverage that is provided via American General Life Insurance Company. 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 life insurance 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. The return on the cash in these plans is dependent on the performance of an underlying market index, such as the S&P 500 or the DJIA.
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 that can help to 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 that are offered via American General/AIG include the following:
- Retirement Annuities
- Accident and Supplemental Health Insurance
- Income Protection
- Retirement planning programs
- Key Person Insurance
How to Get the Best Life Insurance Premium Quotes
In shopping for life insurance coverage, it is typically best to work in conjunction with an independent brokerage or agent that can provide you with information about more than just one insurance carrier. That can allow you to analyze benefits, policies, and premium costs.
If you are in the market for life insurance protection, we can help. We work with some the best life insurers and can provide you with all of the details that you need – including premium quotes. In order to begin the process, all you need to do is just simply take a few moments to fill out the form on this page.
Should you have any additional questions, please feel free to contact us directly via phone, toll-free, by dialing 888-836-7071. We understand that the purchase of life insurance can be somewhat confusing. But, with an experienced advisor on your side, it can be easy. So, contact us today – we're here to help.