What AIG Permanent Life Insurance Covers
AIG offers several permanent life insurance products that combine lifelong coverage with a cash‑value component. Unlike term policies, premiums continue for the insured's whole life, and part of each payment builds cash value that can be borrowed against or withdrawn under certain conditions.
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Core Policy Types
AIG's permanent line includes three main structures:
- Whole life – fixed premiums, guaranteed death benefit, and a steady cash‑value growth rate.
- Universal life – flexible premiums, adjustable death benefit, and interest‑earning cash value tied to market rates.
- Variable universal life – policyholder directs cash‑value investments among sub‑accounts, allowing higher growth potential with market risk.
Key Features to Evaluate
When comparing AIG permanent policies, focus on these attributes:
| Feature | What to Look For | Why It Matters |
|---|---|---|
| Premium Structure | Fixed vs. flexible payments | Impacts budgeting and long‑term affordability |
| Cash‑Value Growth | Guaranteed rate vs. market‑linked rate | Affects borrowing power and policy surrender value |
| Policy Charges | Administrative fees, cost of insurance | Reduces cash‑value accumulation over time |
| Death Benefit Options | Level vs. increasing benefit | Aligns with estate planning goals |
How to Assess Suitability
Start by defining the financial purpose: wealth transfer, lifelong protection, or cash‑value accumulation for future needs. Then match the policy type to your risk tolerance—whole life for predictability, universal life for flexibility, variable universal life for investment involvement. Review AIG's policy illustration, which shows projected cash value under different assumptions; request it from an authorized agent.
Where to Get Reliable Information
Consult AIG's official website for up‑to‑date policy brochures and state‑specific disclosures. An independent financial advisor can run a needs analysis and compare AIG's offering with other carriers. For regulatory details, check your state's department of insurance website, which lists complaint histories and licensing status.
Common Pitfalls to Avoid
Do not assume the cash value will grow as fast as a traditional investment without reviewing the illustrated interest rates. Be wary of policies that promise low initial premiums but carry high cost‑of‑insurance charges that increase with age. Finally, ensure the policy's surrender period and penalties align with your liquidity timeline.