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Pros / It has the lowest rates, especially for term policies.

Cons / This provider doesn’t offer financial planning services.

 Verdict / AIG had the best rates for both term and permanent insurance policies during our testing, so it’s a good option if cost is your main concern.

We compared life insurance quotes and found that AIG’s rates were by far the lowest, making it our choice for the best value life insurance provider. AIG has a long, steady history paying out policies, earning an A rating from A.M. Best, an organization that grades life insurers on financial stability and their ability to pay claims in the long term.

Life insurance policies come in two main types: term and permanent. A term policy is the most common and most affordable option. It provides a single benefit to your beneficiaries if you die anytime during the term. Permanent life insurance is a bit more complicated. It’s more expensive and doesn’t expire. In addition to the death benefit, a portion of your premium is put into an interest-earning savings account that builds value over the course of the policy.

Each life insurance policy is unique, tailored to your specific combination of age, health, income, debt and retirement plan. We used two scenarios to get our quotes. One was a 45-year-old man who smokes and has relatively decent health. Our other scenario was a 33-year-old woman in excellent health. We used the same income and debt numbers to eliminate some other variables. All the quotes were for $250,000 policies with 20-year terms.

AIG had by far the lowest rates across the board. Term policies for our healthy subject were especially low – $13. That’s much less than the $20 average and significantly less than Prudential’s quote. Over the life of the term, our 33-year-old would save more than $1,600. Smoking tends to result in much higher premiums, but our 45-year-old got a quote for $114, which is $30 less than average.

We also got the lowest quotes for permanent policies from AIG. Our 45-year-old subject got a quote for $398 per month – almost $100 less than our average quote. The healthy 33-year-old had a rate of $157 per month, which was also significantly lower than the average quote.

AIG offers a few permanent policy options, including whole and universal policies. Whole policies are the most basic and aren’t as flexible as universal policies. With universal life insurance, you can adjust your premium and benefits during the course of the policy. The company also offers indexed universal policies. These tie your policy to a market index, most often the S&P 500, and have a chance to accumulate more wealth.

You can also purchase annuities and mutual funds through AIG, but its financial planning services aren’t as intensive as those offered by some of the other insurers we looked at. So, if you want someone to help you manage your money and plan for retirement, you may want to look at another company.

To file a claim, your beneficiary needs to download AIG’s claims kit, which includes all the necessary forms and documents. They can contact customer service for help, but AIG doesn’t allow them to complete a claim online.

Specifications and Benchmarks

Plan Options

Whole
Universal
Disability Insurance

Example Premiums

Male, 45, Smoker Term
$114
Male, 45, Smoker Permanent
$398
Female, 33, Non-Smoker Term
$13
Female, 33, Non-Smoker Permanent
$157

Beneficiary Assistance

Financial Planning
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Online Claims Filing
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One-on-one Claims Assistance