AIG Final Expense Insurance: A Comprehensive Review and Guide

AIG Final Expense Insurance is designed to cover funeral expenses, unpaid medical bills, and other final costs, typically ranging from $5,000 to $25,000. This type of insurance is often purchased by individuals aged 50-80.

AIG offers a guaranteed acceptance rider, which means that policyholders can be accepted into the policy regardless of their health status. This rider is typically available up to age 80.

Policyholders can choose from various coverage options, including a base policy and optional riders. The base policy covers funeral expenses, while riders can provide additional coverage for items like cremation or estate taxes.

AIG Final Expense Insurance is a type of permanent life insurance policy with a death benefit specifically earmarked for funeral and burial expenses.

It's designed to cover funeral, burial, and estate debts and administration costs, making it a comprehensive solution for final expenses.

The policy is often referred to as "burial insurance" or "funeral insurance", but the terms are sometimes used interchangeably.

AIG Final Expense Insurance is not intended to be applied only to funeral and burial expenses, but rather to cover a broader range of final expenses.

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AIG final expense insurance is available for face amounts ranging from $5,000 to $25,000.

This policy is designed for individuals aged 50 to 80, making it a great option for seniors who may have been declined by other insurance carriers.

State availability varies, with AIG final expense insurance currently unavailable in New York.

The graded period for this policy is 24 months, during which time the policyholder will not have access to the full death benefit.

Premiums returned to the policyholder amount to 10% of the premium paid.

Riders are available for critical illness and terminal illness, providing additional benefits to the policyholder.

You can apply for AIG final expense insurance through an independent agency or directly through the carrier.

Here's a breakdown of the policy's key features:

The AIG Final Expense Insurance Policy Details are as follows:

The policy is available for face amounts between $5,000 and $25,000, making it suitable for various final expense needs.

AIG's final expense insurance is available for individuals between the ages of 50 and 80.

You can apply for this policy through an independent agency or directly through the carrier, making it convenient for those who prefer a hassle-free process.

Here are the key policy details:

The Level Death Benefit is a type of final expense policy that pays out a fixed amount to your beneficiary regardless of when you die. This policy is designed to cover funeral expenses and other final costs.

One of the key features of the Level Death Benefit is that it has a maximum death benefit of $35,000. This means that even if you have the policy for a long time, the payout will never exceed this amount.

Here are some key benefits of the Level Death Benefit:

The Level Death Benefit also offers a paid-up policy at age 95, which means you won't have to pay any more premiums after that age.

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Graded policies offer a unique set of benefits that can be attractive to some individuals.

The graded two-year death benefit pays your beneficiary a return of the premiums you paid plus 10% interest during the first 2 years. This can be a significant advantage, especially if you're looking for a policy with a low upfront cost.

A graded policy can also pay out a percentage of the face value, typically 25 or 50%, during the initial year or two. This can help provide some coverage even if the full benefit isn't available right away.

Some graded policies have a maximum death benefit, such as the $25,000 maximum death benefit offered by some insurers. This can be a consideration if you're looking for a policy with a higher payout.

Graded premium policies can also increase over time, typically every 5 years, to adjust for underwriting risk. This can be a drawback for some individuals who prefer a fixed premium.

Here are some key features of graded policies:

The Chronic Illness Rider is a valuable feature offered by AIG that allows policyholders to access a lump sum payment of up to 50% of the policy's face amount with zero waiting period.

This payment is made if you're unable to perform 2 out of the 6 Activities of Daily Living, such as walking, bathing, feeding, dressing, and others.

The benefit payment is restricted to the total premiums paid for the policy to date, with a maximum of 50% of the total coverage amount.

In other words, you can receive 100% of the money you've already paid up to half of the full coverage amount.

AIG offers this feature at no additional charge, providing an added layer of protection and financial support to those who need it most.

Immediate coverage is available from some companies, but the insured needs to be in good health to qualify and pass any required underwriting.

You can qualify for immediate coverage if you're relatively healthy, but a significant medical condition will likely disqualify you.

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Some final expense policies don't require a medical exam, making it easier to get approved, but the insurance company will still ask questions about your health.

To qualify for immediate coverage, you typically need to answer a few questions about your health, and if you're approved, you'll get coverage without a waiting period.

Immediate coverage is a great option if you're in good health and want to get coverage quickly, but if you have a medical condition, you may not qualify.

The key is to be honest when answering the health questions, as withholding information can lead to your application being denied when your family needs it most.

Some final expense policies offer immediate coverage, but it's essential to review the policy details and understand the terms and conditions before applying.

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The benefits and features of AIG final expense insurance are quite impressive. A level death benefit is paid out immediately to your beneficiary, regardless of how long you've had the policy, and it's capped at $35,000.

You can also get paid up policies at age 95, which means no more premiums are due for the life of the policy. However, male tobacco users may have to pay premiums to a younger age if they buy a policy between 61 to 70.

AIG offers custom riders at no additional charge, which include accelerated death benefits that help those with coverage accelerate their benefits while they're still alive, as long as they have a qualifying illness. This can be a huge relief for those facing a serious medical condition.

Here are some key features of AIG's funeral cover plans:

AIG's final expense insurance is available for ages 50 to 85, which is about five years longer than most other insurance carriers offer. This is great news for seniors who may have waited too long to apply for a final expense policy and will now be declined by most other carriers.

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This policy is available for ages 50 to 85, which is about five years longer than most other insurance carriers offer.

The rates are quite a bit higher for people in their 80's, but if you can afford it, we believe some insurance is better than no insurance.

You can choose a policy with a lower payout if your intention is to be cremated and have a small, simple memorial service.

Conversely, if you will be having a large memorial service and burial arrangements that come with a higher price tag, you can opt for a policy with a higher death benefit.

Most insurers will issue a funeral coverage policy with a face value of as little as two or three thousand dollars, and correspondingly low premiums.

If you will be having a large memorial service and burial arrangements that come with a higher price tag, you can opt for a policy with a higher death benefit, although guaranteed issue policies typically have a maximum death benefit of $25,000.

The policy is also available in all U.S. states with the exception of New York.

Accelerated Death Benefits can be a lifesaver for those with a qualifying illness. These benefits allow you to accelerate your benefits while you're still alive.

AIG offers custom riders at no additional charge, including Accelerated Death Benefits. This feature provides further value to their customers.

The Terminal Illness Rider pays 50% of the death benefit when your life expectancy is less than 24 months. This can help pay for medical bills, hospice care, and other expenses.

If you contract a life-threatening illness and are not expected to live past two years, you can receive 50% of the face amount to help with expenses. Some of these expenses include medical bills, hospice care, and surgical costs.

Using the Terminal Illness and Chronic Illness Riders will have a negative effect on the death benefit payout to your beneficiaries. The eventual policy payout will equal the policy amount minus the rider amounts that were redeemed while alive.

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AIG final expense insurance has a relatively quick and easy application process, which can be completed in under 15 minutes over the phone. The application is sent electronically to your inbox for signature and can be signed directly from your computer or mobile device.

The application process for funeral and final expense insurance is similar to other forms of permanent life insurance, though often a little easier. A severe health condition can be disqualifying, but the underwriting process for funeral expense policies is more lenient than for most other life insurance policies.

The rates for AIG guaranteed issue whole life insurance are level and guaranteed to not increase during the entire life of the policy. Across all carriers, AIG is known for its competitive pricing, with sample policy rates by age and premium brackets available below.

Final expense insurance rates are lower for younger and healthier insureds and higher for insureds who are older or have existing health problems.

AIG is known for its competitive pricing, with premiums that are level and guaranteed not to increase during the entire life of the policy.

The price you pay for AIG's guaranteed issue product is determined by your age at the time of application and will remain the same from day one.

Across all carriers, AIG is one of the most affordable options, with sample policy rates available by age and premium brackets.

AIG's guaranteed issue whole life insurance rates vary by gender, but the exact rates are not specified in the provided information.

Final expense insurance rates are lower for younger and healthier insureds, and higher for insureds who are older or have existing health problems.

The insurance company sets premium amounts based on factors such as the applicant's age, health status, and desired benefit level.

With most final expense policies, the amounts of both the premium payments and the death benefit are fixed when the policy is issued, and both numbers are set in stone as long as the coverage remains in place.

AIG's fixed rates mean that you'll know exactly how much you'll be paying each month, and how much your loved ones will receive in the event of your passing.

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Applying for life insurance can be a straightforward process, especially with some carriers. AIG, for instance, offers a quick and easy digital application that can be completed in under 15 minutes.

The entire application process takes place over the phone, and once finished, you'll receive a policy number immediately. This is a rare occurrence in the industry, and it's a significant advantage for those applying with AIG.

The application process is then sent electronically to your inbox for signature, and you can sign it directly from your computer or mobile device. This eliminates the need for paperwork and makes the process even more efficient.

In some cases, the insurer may conduct a medical background check, but this is not always the case. If you have a severe health condition, it may disqualify you from coverage, but generally, the underwriting process for funeral expense policies is more lenient than for other life insurance policies.

Here's a comparison of the application process for different types of life insurance:

AIG final expense insurance, like any other insurance policy, has its potential drawbacks. The cost of premiums can be on the higher side, especially for those in good health who can get a better rate elsewhere.

Some AARP members may find that they're not eligible for this policy, which can be a drawback for those who are part of this organization. The coverage limits are also relatively low, with a maximum coverage amount of $300,000.

If you're a healthy senior or someone who needs more than $100,000 in life insurance, you may want to reconsider using AIG final expense insurance. There are better options available, and the graded death benefit for guaranteed life insurance can be a drawback for those who die within the first two years of the policy.

If you're considering a final expense insurance policy, there are some potential drawbacks to be aware of. Some policies may have limited coverage during the initial year or two after the policy is issued, as seen in Example 2. This means that if you pass away during this time, your beneficiary may not receive the full death benefit.

A guaranteed-issue policy can be a good option for applicants with a medical history that might otherwise preclude life insurance coverage. However, this type of policy often comes with a higher cost and limited coverage.

Term life insurance, sometimes marketed as providing money for funeral and burial expenses, is not guaranteed for life. At the end of the term, the policy lapses, and no policy proceeds will be available when the insured dies, as explained in Example 3.

If you're looking for a policy that will pay out at death, you'll want to choose a permanent (not term) insurance policy.

Here are some potential drawbacks to consider:

AIG Guaranteed Life Insurance has its advantages, but it's essential to consider the potential drawbacks before making a decision. A graded benefit is a waiting period that applies to this type of policy, meaning your beneficiary will only receive the premiums you paid if you die within the first two years.

Some people may find the no medical exam requirement appealing, as it makes the application process easier. Additionally, AIG accepts pre-existing conditions like cancer, which can be a significant benefit for those with health concerns.

A.M. Best rates AIG at A+, while Fitch and Standard & Poor’s give them an AA- rating. This indicates a strong financial standing, which can provide peace of mind for policyholders.

However, AIG Guaranteed Life Insurance may not be the best option for everyone. For instance, only AARP members are eligible, which can limit its appeal. Furthermore, premiums can be expensive, and coverage is limited to seniors aged 50-74.

Here are some key points to consider: