American General Life Insurance for Physicians

When it comes to planning an estate or considering what you would like to leave behind to family, life insurance is a consideration. No matter how successful a practice is, having the ability to provide peace of mind to your family should something happen to you is critical. One option is American General Life Insurance.

We aim to provide you with the information and guidance you need when making big decisions like this. We encourage you to download our complete guide to life insurance to learn more about the options you have.

American General Life Insurance is a well-known and recognized provider offering people a wide range of life insurance solutions. Learn more about the company and what it has to offer.

Who is American General Life Insurance?

American General Life Insurance (AIG) is a part of American International Group, Inc, an American finance and insurance organization that offers services in 70 countries. The company is based in New York City and has revenue that exceeds $56 billion as of 2022.

AIG shares that it offers some of the most innovative financial products available today and works to remain a leader in providing individuals and businesses with the financial protections they need.

The company was founded in 1919 when American Cornelius Vander Starr first established the company in China. They expanded to the U.S. in 1926. The company had steady growth throughout its early years, which helped them establish a wide range of products that helped the business stand out from others.

AIG offers casualty insurance, life insurance, mortgage insurance, retirement products, and other financial services.

In 2022, American General Life Insurance was a part of American International Group, which rebranded to Corebridge Financial. That is likely to see their life insurance products referred to today, though they still sell their life insurance under American General Term Life Insurance.

The company sells its insurance products through independent brokers, and some products can be purchased directly by consumers online.

What Type of Life Insurance Does American General Life Insurance Offer?

American General Life Insurance, working under AIG, provides a wide range of insurance products to meet the needs of its clients. That includes the following:

Term Life Insurance

Term life insurance policies in place for 10 to 30 years are a common option and one of the most popular products the company offers. This policy is best for those who have a greater need for coverage now, and that need will lower over time.

Quality of Life Insurance

This specific type of term life insurance provides a set dollar amount for a specific length of time. It also offers living benefits, which are those that can be obtained if you become chronically and critically ill. This means that you can draw from those benefits during your illness to cover expenses. This policy is a bit more unique in life insurance offerings because it allows the user to tap into benefits when needed, but it keeps rates lower.

Permanent Life Insurance

The company also offers several types of permanent life insurance:

• Universal life insurance: This coverage remains in place throughout a lifetime but allows users to adjust the benefit amount they need based on current needs without having to obtain a new policy.
• Whole life insurance: This policy can also last a lifetime and allows for the same premium rate at the start to be maintained.
• Guaranteed Issue: This whole life insurance is provided to those that are between the ages of 50 and 80. A person cannot be turned down for coverage, no matter their health condition.

Accidental Death Insurance

AIG Direct also offers accidental death insurance, which is designed to provide family members with financial coverage if a person becomes seriously injured or killed in an accident, becomes blind as a result of an accident, or is paralyzed.

Indexed Universal Life Insurance

This policy provides flexible premiums with adjustable death benefits. What makes it a bit more lucrative is that it can build cash value during a person’s lifetime. The policy’s value is based on the changes within the stock market, and that can provide for some significant increases in value. These funds tend to provide access to cash value during a person’s lifetime, but they are also more expensive, with higher premiums.

Related reading: Term vs. Permanent: A Physicians Life Insurance Comparion

Monthly Premiums for American General Life Insurance

Life insurance premiums range widely from one person to the next. The company’s rates are competitive with other providers offering similar products. Overall, pricing is dependent on factors such as:

Type of coverage

Term life insurance policies from the company are lower than most whole life policies, though their Quality Living Benefits keep costs lower than most other whole life insurance policies on the market.

Coverage amount

Choose from $500,000 on up for coverage options. The more insurance coverage purchased, the higher the costs are typically. Policies for term life insurance range from $250,000 up to $10 million, with the lowest policies charging around $14 per month for qualified applicants.

Term limits

Choose from 10 to 30-year term life insurance limits. The company’s whole life insurance policies carry on as long as you meet the requirements of the policy and make premium payments.

Age and health conditions

The company uses a person’s age as well as health information (including a physical requirement for some of its whole life insurance policies) to determine cost. However, the company’s Guaranteed Issue life insurance policy does not limit a person’s access based on health (though you must be between 50 and 80 to obtain this policy).

Optional Riders

The company’s optional riders are in line with competitive offerings. They offer, for example, a terminal illness rider, accidental death benefit rider, and child rider on life insurance. These policies aim to provide compensation in various situations. If a person suffers a terminal illness diagnosis, this rider provides a one-time acceleration of up to 50% of the policy’s stated benefit. The child rider provides financial compensation from the death benefit if a child dies when a parent has a covered policy in place.

While the company does not provide direct pricing information for all policies online, they do offer a free quote process. Typically, policies are based on value, length, and whether or not the premium is fixed for the life of the policy. A $250,000 term life insurance for a healthy person who is under the age of 50 could cost as little as $14 per month, according to the company’s website.

What Optional Riders Do They Offer?

American General Life Insurance offers several riders, or added features to insurance policies, that help to provide added coverage to the policy that goes above and beyond what the base policy provides. Keep in mind that riders are not always available and are dependent on the company’s insurance coverage offerings, a person’s health and age, and other factors. View these as a separate but added component to the life insurance you purchase with their own qualifications and benefits.

Accidental Death Benefit Rider

An accidental death benefit rider is available on some term life insurance policies. The company’s benefit amount is in addition to any death benefit that is already applicable to the life insurance policy. The benefit can be as high as $250,000. This rider combines accidental death with life insurance under the same policy, which typically keeps costs lower. You must purchase the rider at the same time as purchasing the policy to qualify.

Child Rider Life Insurance

The child rider life insurance policy is like adding a child to the coverage of your life insurance. It applies to children who are at least 15 days old up to their 19th birthday. If your child (listed on the policy) dies during that period of time, the death benefit is paid out to you to help cover the costs of your child. The death benefit for the child is pre-determined and can be selected by parents to fit their specific needs. It is possible to add numerous children to the same policy through additional riders.

Terminal Illness Life Insurance Rider

The terminal illness rider applies to situations where a person is diagnosed with a terminal illness during their lifetime. It can help to provide you with financial support during your lifetime as you cope with the illness. This policy provides a one-time acceleration of your death benefit, pushing it to as much as 50% higher, though it does not extend more than $250,000. There is an administrative fee associated with this of several hundred dollars. However, you can add this rider to most life insurance policies without any additional cost beyond that fee.

Waiver of Premium Rider

The waiver of premium rider helps to ensure that if you are diagnosed with a sudden, unexpected incident that leaves you totally disabled and unable to work, your life insurance policy remains in effect, but you do not have to pay the premium any longer. You continue to receive coverage through your life insurance that your family can count on later, but you do not have to pay for it, and you do not lose your policy or any rider with it. This rider is available on policies that are over $100,000 in value.

What Do Beneficiaries Need to Do to Collect Benefits?

Having life insurance in place is a valuable step, but you need to ensure your listed beneficiaries – those receiving the funds after your death – have direct information on how to obtain the benefits. Keep the policy accessible, such as in a locked box at home, and place another copy with your attorney. Don’t keep it in a bank box where your loved ones may be unable to access it.

When the time comes to file a claim (during or after your lifetime), that can be done by calling the company at 800-888-2452. You will need to provide information on the policy as well as a copy of the death certificate or other documentation to process the claim.

Read this: Life Insurance Claim Denied?Here’s What to Do.

Pros and Cons of American General Life Insurance Coverage

American General Life Insurance offers both pros and cons associated with its life insurance policy.

Pros:

• Term life insurance is an excellent choice here. The company offers 18 different length options to choose from. The longest one available to the youngest applicants and lasting as much as 35 years.
• The company’s rates for life insurance are highly competitive, and that means these policies are more accessible to physicians, including those that may just be starting out.
• The company has a strong history of providing reliable service. They are noted for their long-term reputation and reliable investment strategies. They are an older, proven company that isn’t going anywhere.
• The policy does provide coverage for those looking for protection, even as marijuana users. Not all policies are available to those who use marijuana, but some are.

Cons:

• The company’s life insurance policies, exception for guaranteed coverage, require a medical exam. That also means that some people may not qualify if they have some type of advanced health condition.
• There have been some ups and downs in the company’s financial history. The company’s name change and division are not unheard of within the industry. However, some people may be put off by this before purchasing coverage.
• The company does have less-than-desirable customer service standings. There are numerous reviews from consumers that indicate that the company was hard to get ahold of or that customer service representatives were difficult to work with.

Is American General Life Insurance a Good Option for Physicians?

American General Life Insurance could be a good option for physicians. The company offers a diverse portfolio of investment options that could meet the needs of most physicians. With policies valued at up to $10 million for term life and more flexibility than most companies in selecting a policy that meets your needs, it can be a solid choice.

The company does offer group accident and health insurance, including life insurance products. Group coverage, such as for all doctors in your practice, could help to keep costs lower and may enable you to obtain better overall protection for your needs. The company sets pricing and life insurance coverage availability on a variety of factors, including the number of people insured at once. It does not offer a specialized level of insurance or an insurance group package that applies to all physicians.

It’s possible for physicians to use these policies to achieve their financial goals and build wealth. These policies typically provide peace of mind, allowing for the physician named on the policy to put in place financial resources for their families to cover their debts and medical bills and maintain the same quality of living for their families should something happen to them. With their low cost, they tend to be a simple way to provide this protection.

As a physician, it is critical that you do what you can to build your portfolio to be as diversified and fitting to your specific needs as possible. It is critical to protect your salary with disability insurance as well, not just with life insurance. Take a few minutes to learn more about how disability insurance can further protect you, as a physician, and your family when the unthinkable occurs.

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