Reviewed: AIG GIWL (Guaranteed Issue Whole Life) Insurance
Posted in No Exam Life Insurance last updated on June 28, 2022We’re reviewing the Guaranteed Issue Whole Life insurance product from American General Life Insurance Company, aka AIG. We’ll cover the benefit amounts, waiting period, guaranteed issue policy type, riders, and underwriting turnaround time.
Table of contents
Quick Summary
AIG has one of the best (and fastest) guaranteed issue policies available. The benefit amounts are large enough to cover most final expense situations, and they offer terminal and chronic illness riders.
You can expect to get the policy 2-3 days after application. It’s guaranteed, so they accept everyone who applies as long as you fall within the age limits. Use the Guaranteed Issue Quotes tool on this page to see AIG’s rates for your age and states along with comparisons from other companies.
AIG Guaranteed Issue Whole Life Insurance
Guaranteed issue whole life has a few advantages over a term policy and other types of no exam policies.
First, it lasts your whole life. You also see this called permanent life insurance. Whole life is only one sub-type. Second, this particular policy has a limited pay component where when you reach a certain age, you no longer need to pay premiums to keep the policy in force.
AIG has an A rating for financial strength from AM Best.
The Basics
Issue ages start at 50 years old and go to age 80.
Benefits start at $5,000 and max out at $25,000. Keep in mind the average burial rites and necessities in the United States average $10,000.
You can take advantage of the chronic illness and terminal illness riders unless you live in California.
AIG defines chronic illness as the inability to perform two out of the six activities of daily living (bathing, dressing, eating, transferring, toileting, continence). When the rider triggers, they’ll pay a one-time lump sum of 100% of the premiums paid, up to 25% of the benefit.
For example, if you have the $25,000 benefit, they’ll refund up to $6,250 in premiums. For a man who buys the policy at age 60, that would be just under three years of premiums.
The terminal illness rider pays 50% of the death benefit upon diagnosis of fewer than 24 months to live.
AIG Guaranteed Issue Whole Life Brochure
Use the link below to download the AIG GIWL brochure for information to take with you.
The Fine Print
Guaranteed issue policies mean that everyone who applies gets accepted.
There are no medical exams, no labs, and no health questions on the application.
In this case, most companies have a graded benefits structure to ensure they don’t go bankrupt (and therefore can’t pay beneficiaries) from people with high-risk health concerns purchasing policies shortly before they pass on.
Graded benefits are the middle ground between providing benefits for the family and staying financially solvent.
In AIG’s case, the graded benefits are as follows:
- Year 1 – 110% premiums paid
- Year 2 – 110% premiums paid
- Year 3 – Full face amount
In the first two years, the full benefit is payable from accidental death. AIG only refunds the premiums for suicides.
AIG Guaranteed Issue Rates
The premium payments start at $25 each month and climb from there based on age, amount of coverage and biological sex.
| Age | Men – $10k | Men – $25k | Women – $10k | Women – $25k |
|---|---|---|---|---|
| 50 | $55.99 | $136.96 | $38.58 | $99.23 |
| 60 | $68.14 | $186.07 | $53.93 | $148.20 |
| 70 | $106.00 | $290.25 | $80.41 | $220.43 |
| 80 | $206.32 | $519.08 | $189.53 | $512.78 |
At a designated age between 80 and 90, you trigger the limited pay feature. That means you keep the policy through age 121 without paying for it anymore.
The age depends on the age you were when you bought the policy and the benefit amount you selected.
For example, a woman who was 52 when she purchased a $20,000 policy would stop paying premiums at age 81. A man who was 74 with a $10,000 policy would stop paying at age 86.
FAQ
How do I know if a guaranteed issue policy is right for me?
Guaranteed issue policies don’t ask medical questions on the application or require a medical exam. It’s one way to get a fast life insurance policy. However, if you’re in good health, a final expense or traditional life insurance option may fit your budget better.
What is a guaranteed issue in insurance?
Guaranteed issue means that the company accepts everyone regardless of their health. The only limitation is that their age matches the range in which an insurer issues the policy. Most guaranteed issue policies start at age 50. A select few will start as low as 18.
Does AIG have a 2-year waiting period?
It’s not a waiting period like in disability insurance. But there is a two-year graded benefit period. In the case of AIG’s GIWL, the beneficiaries will receive 110% of the premiums paid if the insured passes away within the first two years of owning the policy, unless it’s from an accident.
What is a guaranteed issue GI amount?
Most guaranteed issue policies offer between $5,000 and $25,000 in benefits. Very few will have higher limits like $35,000. Other small policies, like final expense, can reach as high as $50,000 in benefits, but require more underwriting.
Conclusion
AIG GIWL presents an opportunity to get a guaranteed issue whole life insurance policy with a few riders and a fast turnaround time.
The limited pay feature gives it a nice advantage over other guaranteed issue policies for peace of mind that the contract will always be in place once it’s been fully funded.
You can use the guaranteed issue quotes tool on this page to compare AIG’s Guaranteed Issue Whole Life with other guaranteed issue products.
How Abrams Insurance Solutions Can Help
We’re a small group of independent insurance agents who focus on finding the right life insurance policy to fit you and your family at the lowest possible premium. Even with many pre-existing medical conditions, many people can find options within traditional life insurance before turning to guaranteed issue.
Our goal is to exhaust those options.
Give us a call with any questions at (858) 703-6178. We’re here to help, and there is never any obligation.
