AIG Guaranteed Issue Review: Plan Details & Hidden Benefits

AIG Guaranteed Issue Review
AIG Guaranteed Issue Review: Plan Details & Hidden Benefits

Black and white AIG logo

If you have done your research and learned about how much funeral costs are, you know planning for final expenses should be a high priority.

Low-cost final expense insurance products can be difficult to find when the applicant has a chronic or serious pre-existing condition. Using the wrong plan can lead to coverage denial or high premiums.

Fortunately, AIG’s guaranteed life insurance plan will cover high-risk applicants at an affordable price with permanent protection.

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AIG Guaranteed Issue Review

American International Group (AIG) has a long history of being a well-respected and credible company. AIG was established in 1919 in Shanghai, China, by an American named Cornelius Vander Starr. In 1926 an office was opened in America and eventually expanded into South America.

In 1939 the world markets were very unpredictable due to World War II, and the company decided to move its headquarters to New York City.  In 1969 the carrier entered into a public offering on the New York Stock Exchange. This company is also known as American General Life Insurance, and they are currently in over 80 countries worldwide.

Company Details

  • Established: 1919
  • Financial Rating: A (excellent)
  • Headquarters: New York City, NY

American International Group has a long list of financial services and products, but our attention for this article will focus on AIG’s guaranteed acceptance life insurance.

Guaranteed Issue Stamp

AIG’s Guaranteed Issue Plan Details

The AIG Guaranteed Issue Life Insurance plan is meant for seniors between 50 – 80 years old who have serious medical concerns. This burial insurance, regardless of pre-existing health history, will guarantee coverage.

Plan Facts

  • Age Eligibility: 50 – 80
  • Coverage amount: $5,000 – $25,000
  • State Availability: 49 states & DC (excluding NY)
  • Medical Exam: No
  • Health Questions: No
  • Waiting Period: 2-years
  • Permanent Coverage: Yes
  • Builds Cash Value: Yes
  • Smoking Rates: No

No Medical Exam & No Medical Questions

With this AIG life insurance for seniors, no medical exam will ever be necessary. No health questions are even asked because every applicant is automatically approved for coverage. This allows even those with the most high-risk medical concerns to receive this AIG funeral policy.

Coverage & Price Never Change

This AIG funeral policy is considered whole life insurance because the coverage amount will never terminate or decrease. This feature gives families peace of mind that they are prepared for inevitable final expense costs.

Additionally, the policyholder will pay the same premium every month. The price will never fluctuate. This allows seniors on a fixed income to plan monthly costs with no surprise rate hikes like some term policies have.

Limited Benefit Period for Death During the First Two Years

With no medical questions required for coverage, a two-year waiting period is implemented with the death benefit. Funeral Insurance companies use the waiting period to reduce risk when taking on applicants with pre-existing conditions. Unfortunately, guaranteed acceptance life insurance with no waiting period does not exist.

AIG Life Insurance Payout Rate by Year

  • Year One: All paid premiums returned plus 10%
  • Year Two: All paid premiums returned plus 10%
  • All Other Years: Full coverage amount

AIG Guaranteed Issue Rate Sheet

AIG burial insurance has extremely competitive guaranteed acceptance pricing. Its monthly premiums rival any of the top options on the market, including Colonial Penn and John Hancock.

AIG Final Expense Insurance Quotes

$10,000 of Coverage

Monthly Premium

Age Female Male
50 $39 $56
55 $47 $61
60 $54 $68
65 $66 $91
70 $80 $106
75 $116 $150
80 $190 $206

Premium Payments Stop at or Before Age 90

With most other burial insurance plans, you will receive permanent coverage if you continue making your monthly premium payments. What makes the AIG Guaranteed Issue whole life (GIWL) plan unique is that at some point, the policyholder will no longer be required to make the monthly payment.

Your coverage will still be active, but no more premiums are required, allowing the policyholder to know final expense insurance will be worth the cost. Still, this is another reason we give high praise in this AIG life insurance review and believe it is on par with other top-level final expense insurance companies.

Below is a chart illustrating the age the policyholder can expect to no longer pay a monthly premium.

$10,000 of Coverage

Maximum Payment Age

Issue Age Female Male
Pay Until The Age Of: Pay Until The Age Of:
50 90 80
55 90 83
60 90 85
65 90 84
70 90 86
75 90 87
80 89 89

Two Riders are Included

A rider is an additional feature in the plan that adds value to coverage. Two riders are included with every AIG GIWL plan, which is uncommon compared to other guaranteed issue plans. Gerber’s Guaranteed Acceptance plan has similar prices but no riders included.

Chronic Illness Accelerated Death Benefit

Upon qualifying, this rider pays a one-time lump sum of up to 25% of the policy’s face amount. The money can be used to pay for anything the policyholder deems necessary. The remaining death benefit will be paid to the beneficiary once the senior has passed.

Chronic illness is defined as not being able to do 2 out of the 6 activities of daily living. These activities include eating, bathing, getting dressed, toileting, showering, transferring.

The Chronic Illness Rider is limited to the total premiums paid for the policy up to 50% of the coverage amount.

Terminal Illness Accelerated Death Benefit

If you receive a terminal diagnosis, you are eligible for this provision. This feature pays 50% of the policy face amount when the diagnosis is discovered. The remaining death benefit will be paid to the beneficiary after the insured’s passing.

Do I Need an AIG Guaranteed Issue Plan?

The AIG Guaranteed Acceptance life insurance plan should be reserved for applicants with serious medical concerns. If you have one of the following pre-existing conditions, this plan is a good option. However, if you do not have these conditions, you will qualify for a lower-cost and more favorable policy.

  • Alzheimer’s
  • Assistance with activities of daily living
  • Bone marrow transplant
  • Cancer (presently)
  • Congestive heart failure
  • Dementia
  • Heart attacks
  • Organ transplant
  • Stroke (within the past 12 months)
  • Taking Oxygen (sleep apnea not included)

Other Funeral Insurance Plan Options

If the applicant does not have any previously listed pre-existing conditions, they will qualify for a less expensive plan.

There are three other funeral insurance plan types to choose from.

Level: The level plan is meant for the healthiest of applicants. The strict underwriting awards the policyholder lower prices and immediate coverage benefits. Seniors should attempt to qualify for funeral insurance with no waiting period.

Graded: With slightly higher prices than the level plan, graded has a more lenient underwriting process. Due to fewer medical questions being asked, a two-year waiting period is added to this plan.

Modified: Having a similar payout structure to a guaranteed issue plan, there is no reason to use this product other than rare circumstances. AIG’s guaranteed issue plan has lower prices than most modified whole life insurance options.

Applying for Coverage

This plan can be purchased in two ways, directly from AIG or an independent agent or agency.

AIG Direct provides this plan at the same cost as an independent agency.

With American General and AIG Direct, you will not have an independent agent guiding you through the process and searching for a policy that best fits your specific needs. An independent agent can look at multiple top funeral insurance companies to find you fast approval at the best rate.

Speak with an independent agent at Willamette Life, call us at 844-576-0019.faq bubble

Frequently Asked Questions About AIG Funeral Insurance

Is AIG a Reputable Company?

AIG has provided secure and personalized coverage to policyholders since 1919.  AIG life insurance rating from A.M. Best is an A (excellent), so you can feel secure knowing they will payout the death benefit promptly to get family members the resources needed.

Are AIG Direct Life Insurance Reviews Good?

AIG Direct life insurance offers a great guaranteed issue plan. Buying an AIG Direct policy is a logical choice, but there is a second option when purchasing coverage.

Independent agents represent AIG as well. These agents have access to the same product that AIG Direct offers and at the same price. The key difference is that the independent agent has other plans to compare it with. If you buy through AIG Direct, you could be spending much more money than you need to.

Is AIG Safe?

Since the 2008 financial crisis, the company has rebounded to find itself in a stronger position than they once were. New systems and a more effective business method have helped cement AIG as one of the top companies in the financial services world.

Does AIG Life Insurance Payout?

Guaranteed Issue whole life policies from AIG will pay in a matter of days. This is a top priority for loved ones when the time comes to pay for funeral costs. Fortunately, AIG makes it easy for family members to receive funds to celebrate the deceased’s life.

Is AIG a Good Life Insurance Company?

With one of the most recognized brands in the insurance industry, AIG has a history that has been built over the past 100 years. Working with the American International Group is a sound financial decision and can be trusted to pay its claims. However, you should always shop around to ensure you are truly getting the best policy that meets your specific needs.

What is the AIG Insurance Rating?

A.M. Best gave AIG an A rating (excellent), one of the highest grades a company can receive. You can trust that AIG will honor its financial commitments.

Is American General the Same as AIG Direct?

AIG Direct is a fully owned subsidiary of American General Life Insurance Company. The policies issued through AIG Direct are fully underwritten through American General Life Insurance Company.

women reading review

Final Thoughts

a. This AIG guaranteed issue review showed that this plan is a great option for those with chronic or serious medical conditions. There are a handful of top-notch guaranteed acceptance plans on the funeral insurance market, and this plan is in that category.

b. The application will ask no medical questions, and coverage is guaranteed. What makes this plan unique from other guaranteed issue burial insurance options is the additionally included riders. This is a major plus for the AIG no medical question plan.

c. This policy is not right for everyone. If the applicant does not have serious medical conditions, there is a good chance they will qualify for a cheaper plan with immediate coverage.

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