Transamerica vs AIG

For clients seeking affordable life insurance with guaranteed acceptance—no medical exams or health questions—Transamerica and AIG are two leading options. Both offer guaranteed issue whole life policies designed for those who may have difficulty qualifying elsewhere, especially seniors or individuals with health concerns. Here’s how they compare across key factors.

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Company Overviews

Transamerica is a major U.S. insurer with roots dating back to 1928, now part of the multinational Aegon group. The company offers a wide range of life insurance products, including term, whole, indexed universal, and final expense policies, and is known for its flexible solutions and broad eligibility.

AIG (American International Group) is a global insurance giant founded in 1919, serving millions worldwide. Its U.S. life division is recognized for competitive guaranteed issue policies, robust financial backing, and digital-first customer service.

Transamerica vs AIG Life Insurance Comparison

Financial Strength & Ratings

Company	AM Best Rating	Outlook
Transamerica	A (Excellent)	Stable
AIG	A (Excellent)	Stable

Both companies are rated A (Excellent) by AM Best, reflecting strong financial stability and claims-paying ability.

Policy Types Offered

Policy Type	Transamerica	AIG
Guaranteed Issue Whole	Yes (up to $50,000)	Yes ($5,000–$25,000)
Final Expense	Yes	Yes (via GIWL)
Term Life	Yes	Yes
Universal Life	Yes	No
Other	Indexed Universal, Group	No

Coverage Options & Flexibility

Transamerica: Offers guaranteed issue whole life from $2,000–$50,000. Policies include level premiums and guaranteed death benefits. Simplified final expense coverage is also available.

AIG: Guaranteed issue whole life from $5,000–$25,000 for ages 50–80. No health questions or exams. Cash value builds over time.

Underwriting & Application Process

Transamerica: No medical exam or health questions. Policies can be issued digitally in minutes. Some products use simplified underwriting.

AIG: Guaranteed acceptance, no medical exams or health questions. Online application and quick approval—often same day.

Pricing & Affordability

Transamerica: Rates are level and competitive. Example: $10,000 policy for 70-year-old male is comparable to AIG, but higher coverage limits available.

AIG: Level premiums for life. Example pricing:

Age 50: Male $55.99/mo, Female $38.58/mo
Age 70: Male $106.00/mo, Female $80.41/mo
Age 80: Male $206.32/mo, Female $189.53/mo

Alternatives to Consider

Mutual of Omaha
Gerber Life
Great Western

These providers may offer lower rates or higher coverage with simplified underwriting.

Riders & Customization

Transamerica: Riders may include terminal illness, chronic illness, waiver of premium, accidental death, and children's term. Some plans include funeral concierge.

AIG: Terminal and chronic illness accelerated benefits included. No optional riders available for guaranteed issue policies.

Best For…

Company	Best For
Transamerica	Seniors needing higher coverage amounts, riders, or fast digital application
AIG	Seniors ages 50–80 who need guaranteed acceptance and straightforward coverage

Pros and Cons

Company	Pros	Cons
Transamerica	Higher coverage limits, digital process, more rider options, strong reputation	Mixed satisfaction, some policies not available in all states, higher complaint index
AIG	Guaranteed approval, simple application, living benefit riders included, strong service	Coverage capped at $25,000, graded death benefit applies, limited rider customization

Customer Experience & Support

Transamerica: Offers online account tools. Complaint index above average. Known brand with extensive market presence.

AIG: Award-winning service (DALBAR), fast applications, and high satisfaction for claim processing and support.

Final Verdict

Both Transamerica and AIG are great options for guaranteed issue life insurance. Transamerica shines with higher coverage limits and policy customization. AIG is ideal for simplicity, guaranteed approval, and reliable customer support. Compare quotes and features to find your ideal fit.

FAQs: Transamerica vs. AIG Life Insurance

✅ FAQs: Transamerica vs. AIG Life Insurance

What is the main difference between Transamerica and AIG life insurance?

Transamerica offers a comprehensive range of life insurance products—including term, whole, and universal life—with higher coverage limits and more unique policy options. AIG also provides a variety of life insurance options but is especially known for its broad term life offerings and competitive guaranteed issue whole life policies.

Which company has better customer reviews?

Transamerica generally receives better customer reviews than AIG, with policyholders praising its customer service and claims process. AIG has received some complaints regarding customer support and policy handling.

What types of policies do they offer?

Both companies offer term life, whole life, and universal life insurance. Transamerica’s term life policies can go up to $10 million (and even higher for high-net-worth clients), while AIG is known for its large selection of term life and guaranteed issue whole life policies.

How do their guaranteed issue policies compare?

AIG’s guaranteed issue whole life insurance is available for ages 50–80, with coverage from $5,000 to $25,000, no medical exam, no health questions, and living benefit riders for terminal and chronic illness included. Transamerica also offers guaranteed issue options, often with higher coverage limits, but details may vary by product.

What riders are available with each company?

Both offer standard riders such as accidental death benefit, children’s benefit, and disability waiver of premium. Living benefit riders for critical, chronic, or terminal illness are available on some term policies from both companies. Transamerica also offers unique riders like the Concierge Planning Rider and income protection options.

Which company is better for high-net-worth clients?

Transamerica is a strong choice for high-net-worth individuals, offering term life coverage up to $100 million and flexible whole life policies, supported by strong financial ratings and global reach.

Can I convert a term policy to permanent coverage?

Yes, both companies allow for term life policies to be converted to permanent life insurance without additional medical underwriting, but terms and conditions vary by product.

How do their prices compare?

Pricing varies based on age, health, and coverage amount. AIG’s guaranteed issue policies are competitively priced for most ages but may have lower coverage limits. Transamerica’s rates are balanced with higher maximums and more flexible options.

Are there any notable differences in the claims process?

Both companies aim to simplify the claims process for policyholders. However, customer feedback suggests Transamerica’s claims and customer service processes are more positively reviewed overall.

What should I consider when choosing between Transamerica and AIG?

Consider the type of coverage you need, premium costs, available riders, the company’s financial stability, customer service reputation, and your long-term goals. Comparing quotes from both can help you find the best fit for your needs.

Can I switch from one company to the other?

Yes, you can switch from Transamerica to AIG or vice versa, but review your current policy’s terms, any penalties, and the suitability of the new policy before making a decision. Consult with a licensed agent or financial advisor for guidance.

What alternatives are available now that AIG is reducing some international offerings?

Transamerica is positioned as a strong alternative, especially for high-value term and whole life policies, offering coverage up to $100 million and strong financial stability.

Blake Insurance Group

Phone: (888) 387-3687

Email: [email protected]

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Blake Nwosu

Owner & Principal Agent

Expertise: All personal and commercial line insurance, including auto, home, business, health, and life insurance.

License: 16117464

Bio Page: https://blakeinsurancegroup.com/blake-nwosu/

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