American General Life Insurance was one of the first companies in the U.S. to offer several types of policies to its customers.
Until the Texas Commission of Appeals ruled in 1925 that a company had the right to underwrite both property and casualty insurance, companies had to specialize in only one line.
One year after that ruling, Gus Wortham asked his father and several prominent Texas businessmen to back him in a venture that he named American General.
American General Life Insurance
As the first multi-line insurance company in the nation, it was immediately popular and did so well that it was soon able to start buying up other insurance companies. Its first acquisition, Seaboard Life, was quickly followed by many other small companies across the nation.
The acquisition of Variable Annuity Life Insurance Company marked American General’s first step into the retirement savings market. By 1968 American General reached one billion dollars in assets.
Today, it is one of the most trusted companies in the world with a number of branches around the globe. Like most modern companies, it has a vast number of customers that it deals with online. Its full line of services includes life, casualty, fire, health, and car insurance along with annuity policies and wealth management.
American General Company Details
Name(s): American General Life Insurance Company, AIG Life and Retirement, AIG Property Casualty, American International Group, The United States Life Insurance Company in the City of New York
175 Water Street
New York, NY 10038
Phone: (212) 770-7000
Ratings: A.M. Best (A), Standard & Poor’s (A+), Comdex (83), Moody’s (A2)
Types of Life Insurance
Basic life insurance is an important factor in the life of most Americans as a means of ensuring financial security in case of the loss of a family member.
The two major types of life insurance policies that American General offers:
- Term Life Insurance
- Permanent Life Insurance
Permanent Life Insurance
AIG provides a variety of Permanent life insurance products and options.
Permanent life insurance is more expensive, but contains an investment component that can be borrowed against.
Here are American General’s permanent life insurance products:
- Secure Lifetime GUL3
- AG Secure Survivor GUL II
- Elite Survivor Index II
- Value+ IUL
- Elite Index II
- Elite Global Plus II
- Asset Protector
Term Life Insurance
Term life insurance is not an investment.
It requires only a set number of payments before it will pay off its full face value in case of the death of the insured.
Since American General allows interest to accrue on its policies, term is usually the best purchase.
In addition, federal taxes are deferred on term life insurance policies and beneficiaries receive tax-free benefits, making it a good financial choice.
The majority of Americans who are insured with this company carry term life insurance.
Here are American General’s term product lines:
- AG Select-A-Term
- AG ROP Select-A-Term
These term life insurance products can provide you coverage for a specific durations. It is a fully convertible term life policy.
Getting Life Insurance
Age is not the main criterion in obtaining life insurance.
American General, as most other companies, also looks at the general health of the applicant, his medications, alcohol and tobacco use, and hobbies in order to determine whether a policy will be issued and at what cost.
Suggested Post: Top 18 Factors That Affect Life Insurance Premiums
American General in the 21st Century
American General continued buying other companies in multi-billion dollar deals until it was acquired itself by American International Group in 2001.
Although AIG is generally regarded as the evil “too big to fail” corporation that consumed billions in tax dollars during the bailouts of the first decade of this century, American General continues to cater to the needs of the average person.
As the life insurance company increases its relationships with its customers, American General will continue to be a tough competitor for other life insurance companies throughout the 21st century.
Speaking of competitors, check out our William Penn life insurance review to see how they compare.
Is AIG the best company for you?
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By: Michael Quinn