AIG Guaranteed Issue Review

Written by Jeff Root

Most people do not want to think about what would happen if they were to die tomorrow, but if there’s anyone who relies upon you financially, you need life insurance.

In fact, more than two out of three Americans said they would feel the financial impact if their primary wage-earner passed away within 6 months.

Another third of Americans say that they know they need more life insurance than what they have.

Life insurance can be used to pay off your mortgage, give your children money for education, provide burial expense coverage and more.

About AIG Life Insurance Company

Over the last 5 years alone  AIG has collectively paid out over 39 billion dollars in claims and benefits to their customers. They have operated for over a hundred sixty years and continue to be awarded excellent financial ratings by the following companies:

Company Financial Rating
A.M. Best A+
Moody’s A2
Fitch A
Standard & Poor’s A+

The guaranteed policy from AIG is designed to provide secure, budget-friendly financial protection for families. This coverage helps loved ones to pay off any current debt, pay medical bills, relieve the burden of continuing household expenses, and have the money necessary to assist with final arrangements.

If you are between the ages of 50 and 85, no matter your health, you will not be turned down. The budget-friendly premiums never increase so you can plan accordingly, something perfect for people who are on a fixed income.

Who is Guaranteed Issue Life Insurance Best For?

Permanent life insurance allows you the option of accumulating cash value on a tax-deferred basis so that you can borrow against that cash to supplement any retirement savings if necessary.

Not everybody can afford or qualifies for a permanent life insurance plan let alone a substantial Term Policy. Minor health concerns can increase premiums two or three fold.

Smokers will see rates typically twice as high as non-smokers because of the underwriting class and risk associated therein. As a result, one option for people who fall under these categories is a guaranteed whole life insurance policy.

Guarantee policy function as final expense policies whereby you do not have to undergo a medical examination and you are guaranteed, as the name suggests, to receive a policy.

Guaranteed issue whole life policy is an affordable and simple product that is full of benefits and helps to serve those looking for a final expense policy. Older clients might be sensitive about leaving their loved ones with the financial burden of their final expenses.

In addition to funeral costs there can be things like unpaid medical bills, loan balances, or credit cards, not to mention continuing household expenses.

Guaranteed issue whole life insurance policies are designed to provide clients with Comfort or no more than a few dollars a day. Typically speaking the benefits are things available only in more expensive policies but in these cases, they are included at no additional fee.

The guaranteed issue permanent protection offered by AIG has no health questions that you have to answer when you apply. There is no medical test you have to undergo. Anyone between the ages of 50 and 85 can apply. The face amounts range between $5,000 and $25,000.

AIG Guaranteed Issue Life Insurance Rates

The following chart shows rates for AIG’s guaranteed issue life insurance policy for men and women ages 50 to 80, for $10,000 to $25,000 of coverage.

Age $10,000 Male $10,000 Female $15,000 Male $15,000 Female monthly $20,000 Male $20,000 Female $25,000 Male $25,000 Female
50 $51.92 $35.83 $76.89 $52.74 $101.85 $69.66 $126.81 $86.57
60 $63.17 $45.14 $93.75 $66.70 $124.33 $88.27 $154.92 $109.84
70 $93.14 $70.41 $138.71 $104.62 $184.28 $138.83 $299.85 $173.03
80 $175.15 $135.12 $261.72 $201.69 $348.30 $268.25 $434.87  $334.81

Note that these rates include the $24 annual policy fee.

AIG Guaranteed Life Insurance Riders 

This permanent protection gives you up to $25,000 in coverage, guaranteed, with no medical exam.

Chronic Illness Rider

If you are sick with a qualifying chronic illness and you need to take out a portion of your policy benefits early to cover the cost of medical care, you get the chronic illness rider included in your policy at no additional fee. With this rider, you can take out part of your death benefit before you pass.

Accelerated Death Benefit Rider

If you become terminally ill and you need to access some of your money, you can receive up to 50% of your death benefit with the accelerated death benefit terminal illness rider. This rider is also included in your policy free of charge.

Each of these features can be used to pay down medical expenses, supplement your income, or for any purpose you see fit. The remaining value in your policy will be paid out to your beneficiaries at the time of your death.

These riders, however, are not available in California. The terminal illness rider is not available in the District of Columbia.

Graded Death Benefit Rider

With the graded death benefit if death occurs by accident, at any time after the policy has been enforced the full death benefit will be paid.

If your death occurs within the first two years of your policy and it is not an accident, the benefit paid out to your beneficiaries will be 110% of the premiums you have paid to date.

In the event that your death takes place after the first two years, you are graded death benefit no longer applied and your beneficiaries will receive a full death benefit.

Quick and Easy Life Insurance Coverage

The technology platform used by AIG specifically for the guaranteed whole life insurance policy is very straightforward. It has a responsive design that you can use on your mobile devices or your tablet.

All forms and disclosures that you need are there. You can also send over your payment information and get a policy number instantly once you have submitted.

There is minimal information required to get a real-time quote. It is simple to figure out what the quote is going to be based on how much coverage you want and your age. You also get instant validation and once your payments are made you can receive coverage that day.

AIG Guaranteed Issue for Smokers and People with Health Concerns

For smokers and anyone with health concerns like high cholesterol, diabetes, or a history of heart disease, finding a good policy can be next to Impossible especially if you want affordable rates and good coverage.

Most of the time life insurance companies will not qualify you for coverage in the form of term or permanent life insurance policies at an affordable rate. Smokers typically have rates that are twice as high as non-smokers. People with health concerns are often given a lower underwriting class, usually standard or below. Understand that life insurance companies have to evaluate your risk. They do that by reviewing what your level of risk is starting with your age. The older you are the more likely you are to pass away.

Most life insurance companies separate people into risk classes like preferred plus, preferred, standard, substandard.  in many cases smokers and people with health concerns are automatically deferred standard or substandard classes which means the cost is exponentially higher and there are bigger limits on the base amount you can.

With this guaranteed whole life insurance policy and others like it, you have a guarantee policy for the rest of your life at an affordable rate.

You might not be able to take out 5 million dollars in coverage to offset the cost of your estate planning or provide an inheritance but you will be able to take out enough money to cover your basic funeral costs and any other debts that might be outstanding at the time of your passing.

AIG Guaranteed Issue Life Insurance Review – Takeaways

AIG’s guaranteed issue life insurance policy gives quick and easy life insurance coverage for people with health conditions.

With permanent no medical life insurance coverage from $10,000 to $25,000 in coverage available to people ages 50 to 85, AIG offers some of the best guaranteed life insurance coverage on the market in terms of price and coverage.

Finding the Best Life Insurance Policy for You

Searching for life insurance is not tough.  A few clicks on Google and you quickly have thousands of options in front of you.

Now, searching through these is where the difficulty creeps in. With so many choices claiming to be the best for you, it can quickly get overwhelming.

This is one of the reasons why we always recommend working with an independent life insurance agent who can help you compare life insurance rates, companies, and policies to determine which is best for you.

Give us a call today to speak with an agent who can understand your financial and personal situation in order to determine what your coverage options are, and which company offers the best life insurance policies for you and your family.

Or, get started comparing life insurance rates with our online quoting engine to get quick and easy life insurance rates instantly!

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