AIG Vs. Pacific Life Insurance: Which Is Better For You?

When it comes to insurance, AIG and Pacific Life are two major players in the field. Both offer a range of insurance products, including life, health, and annuities.

But which company is better for your needs? Here’s an in-depth look at AIG vs Pacific Life insurance to help you decide.

A Brief Comparison Table

CategoryAIGPacific Life
Financial StrengthA, A+ ratingsA+, A+ ratings
Products OfferedExtensive portfolio including life, health, P&C, and moreFocused on life insurance and annuities
Term Life RatesAverageLower than competitors
Permanent Life ExpensesAverageLower than competitors
Permanent Life FlexibilityAverageAbove average
Cash Value GrowthOffers S&P 500 index creditingWide array of index crediting options
Customer ServiceMixed reviews, some claims complaintsConsistently positive reviews
Policy CustomizationBroad range of riders availableMore limited rider options
Acquisition ApproachGrowth via acquisitionsOrganic growth focus

AIG Insurance Overview

AIG is a leading global insurance organization serving customers in over 80 countries. They offer a wide range of insurance products and services including:

AIG
  • Life insurance
  • Retirement products like annuities
  • Property/casualty insurance
  • Mortgage insurance

Some key things to know about AIG:

  • Large provider: AIG is one of the largest insurance companies in the US and the world. This gives them vast financial resources.
  • Variety of options: From term to whole to universal life insurance, AIG has diverse solutions.
  • Strong financial strength: AIG carries high ratings from agencies like A.M. Best (A) and S&P Global (A+). This indicates good financial health.
  • Challenging claims process: While AIG has positive customer service reviews, some have complained of delays and denials for claims.
  • Range of add-ons: AIG allows you to customize policies with riders for accelerated death benefits, waiver of premium, accidental death, and more.

Overall, AIG is a seasoned insurance leader with the scale, financial strength, and variety of products to meet many needs. The claims process can be frustrating at times. But they offer very competitive pricing on policies.

Pacific Life Insurance Overview

Pacific Life Insurance Company is focused solely on insurance and financial services. Their offerings include:

  • Life insurance
  • Annuities
  • Mutual funds
  • Pension administration

Here are some fast facts on Pacific Life:

  • Niche focus: Pacific Life sells only insurance, annuities, and investments. This focus sets them apart.
  • High financial strength: Pacific Life has strong financial ratings from A.M. Best (A+) and S&P (A+). So they have resources to pay out claims.
  • Lifetime benefits: Pacific Life term policies let you convert your policy to permanent insurance without taking a medical exam, regardless of health. This unique option provides more coverage flexibility.
  • Lengthy history: Founded in 1868, Pacific Life has over 150 years of experience in the insurance industry.
  • Customer satisfaction: Pacific Life earns very positive reviews for easy claims processes and helpful customer service.

For those seeking a streamlined set of insurance and investment products from a financially secure insurer, Pacific Life is worth considering. The ability to convert term policies to permanent coverage is a stand-out perk.

Also Read: Comparison Between AIG And New York Life

Key Differences Between AIG And Pacific Life Insurance

  • Term Life Insurance

Term life insurance provides death benefit coverage for a set period of time or “term” like 10, 15, 20 or 30 years. It’s pure insurance protection. Both AIG and Pacific Life offer competitive options for term life:

Pacific Life
Pacific Life

Features

  1. Both carry extensive term choices with coverage up to $1 million or more
  2. Terms of 10, 15, 20 or 30 years typically available
  3. Can usually get quotes and apply online for fast process

Rates

  1. For sample healthy 30-year old male seeking $250K coverage:
    • AIG: About $16 month
    • Pacific Life: About $13 per month
  2. Pacific Life prices come in lower for same coverage
  3. Rates will vary based on personal factors like age and health

Conversions

  • AIG: Allows conversion to permanent life insurance like whole life
    • Must occur during conversion period outlined in contract
  • Pacific Life: Same conversion options as AIG
    • Plus unique option to convert to permanent coverage later without medical exam

For budget-friendly term insurance, Pacific Life edges out AIG. Pacific Life’s lower pricing plus flexibility of conversion options make it stand out. But you can’t go wrong with either provider.

  • Permanent Life Insurance

Permanent life insurance provides lifelong coverage as long as you pay premiums. It also builds cash value that you can borrow against. Let’s see how AIG and Pacific Life compare for permanent policies:

Types Offered

  1. AIG: Offers universal, whole, and variable life insurance options
  2. Pacific Life: Focuses on universal and indexed universal life products

Features

  1. Both allow you to pay premiums flexible over life of policy
  2. Guaranteed death benefit plus cash value growth potential
  3. Many options to customize coverage add-ons and benefits

Policy Expenses

  1. AIG: Average mortality, administrative, and rider expenses
  2. Pacific Life: Lower expenses compared to competitors

Cash Value Growth

  1. AIG: Offers S&P 500 index interest crediting for cash growth
  2. Pacific Life: Wide array of index interest crediting options available for strong cash value growth

Policy Flexibility

  • AIG: Average on being able to adjust coverage amounts
  • Pacific Life: Strong flexibility to modify policies as needs change

Overall, Pacific Life stands out on permanent life insurance for lower policy expenses, better cash value opportunities, and more flexibility. But AIG is competitive too.

Also Watch This Review Video:

Additional Considerations: AIG vs. Pacific Life

Here are a few other factors to weigh with AIG vs. Pacific Life:

  • Customer satisfaction: Reviews show Pacific Life with better claims service and helpful reps. AIG has more complaints on claims delays/denials.
  • Policy options: AIG offers more types like variable life with investment subaccounts. Pacific Life focuses on fewer products.
  • Rider availability: Both have typical riders for disability and chronic illness needs. AIG may have edge for range of riders.
  • Acquisition: AIG has purchased a number of insurers over the years expanding their business. Pacific Life focuses just on organic growth.

For the widest set of insurance solutions, AIG is tough to beat. But Pacific Life shines for permanent life insurance and policyowner satisfaction.

Also Read: Comparison Between New York Life And Transamerica.

Frequently Asked Questions (FAQs)

Which insurance is better term life or whole life?

Term life is better for temporary insurance needs on a budget. Whole life costs more but offers lifelong coverage and cash value. Best option depends on individual circumstances.

Is AIG a leading global insurance company?

Yes, AIG is one of the largest and most recognizable insurance brands worldwide. They offer a vast array of insurance and financial services across over 80 countries.

Who are Pacific Life competitors?

Pacific Life competes with major insurers like MassMutual, Guardian, Metropolitan Life, and Northwestern Mutual. But they maintain niche focus on just insurance.

What is the cooling off period for AIG life insurance?

AIG offers a 30 day free look period to review your new life insurance policy. If unsatisfied during that time, you can cancel and get a full premium refund from AIG.

Also Read: Differences Between New York Life And Northwestern Mutual.

Final Thought

So in summary, while both AIG and Pacific Life are leading insurance providers, Pacific Life stands out for affordable pricing, policy flexibility, cash value growth, and satisfied customers. But AIG offers greater size and product diversity.

Consider your specific needs, finances, and desires to find the insurance company that aligns with your situation. Reach out to a trusted insurance agent or advisor for guidance tailoring solutions to your coverage goals.

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