AIG vs. John Hancock Life Insurance

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  • AIG and John Hancock are ranked among the best life insurers in the United States. See how these two major companies stack up when compared side by side.

As a life insurance shopper, you have plenty of options, including which company to purchase coverage through. To get the most out of a policy, it’s important to choose an insurer that offers the tools and solutions you need and want. Although AIG is a much younger company than John Hancock, they both have more than 100 years of industry experience and are ranked among the best life insurers in the United States. If you’re thinking about purchasing coverage through one of these companies, it may be helpful to understand what coverage options they offer and how they compare side by side.

AIG Insurance Summary

AIG’s life and retirement segment consists of several major U.S. insurers, including American General Life Insurance Company, which issues most of the company’s life insurance policies. Through American General Life Insurance Company, AIG offers term life, whole life and universal life plans with flexible options, so consumers can easily find a policy that suits their needs and budget.

Individuals interested in term coverage can choose from 18 different durations, ranging between 10 and 35 years, and plans can typically be converted to permanent policies at the end of the term without additional underwriting. Shoppers who want lifetime coverage can select one of AIG’s universal plans, which include indexed and variable universal life insurance. The company also offers modest guaranteed-issue whole life plans, which are designed to help families cover the costs of final expenses, with coverage ranging from $5,000 to $25,000.

John Hancock Life Insurance Summary

For more than 160 years, John Hancock has provided life insurance products to U.S. consumers. The company offers term and permanent life insurance plans with coverage as high as $65 million. Its universal policies, which feature flexible premiums and a cash value component that may be borrowed against, are available to individuals up to the age of 90 and may be purchased for children as young as 3 months old.

John Hancock also lets policyholders round out their plans with a broad selection of riders, including traditional add-ons such as a disability rider and other accelerated benefits, as well as several innovative options designed to support a healthy lifestyle.

The company’s Vitality program offers policyholders grocery store discounts for nutritious foods and rewards healthy activities such as working out at the gym or going for a walk. Policyholders living with diabetes can also take advantage of John Hancock’s Aspire program, which helps individuals manage their condition through consultations with medical experts and personal health coaching sessions. The Aspire program also offers rewards to policyholders who make healthy choices.

AIG vs. John Hancock Life Insurance Comparison of Accessibility

Although young, healthy adults can typically find affordable coverage at most insurance companies, options may be more limited for older Americans, individuals in poor health or consumers who have factors that classify them as a higher risk to insure. Both AIG and John Hancock offer several options to increase the accessibility of life insurance for individuals in certain categories.

For example, John Hancock is a senior-friendly company that insures individuals between 3 months and 90 years of age. It also has a program designed specifically for individuals living with Type 1 or Type 2 diabetes. On the other end of the spectrum, the company has high available coverage limits that may be ideal for individuals who have a high net worth and are looking for multimillion-dollar death benefits. AIG offers a guaranteed issue product that makes life insurance accessible for higher-risk individuals, and coverage for adults ages 50 to 80 is approved without the need for a medical exam or health questionnaire. However, AIG's policies typically only offer up to $2 million in coverage, so individuals who need more coverage may need to look elsewhere.

AIG vs. John Hancock Life Insurance Comparison of Company Ratings

AIG has appeared on numerous best-of-the-industry lists, including U.S. News & World Report’s Best Life Insurance Companies of 2022 and Best Life Insurance Companies for Seniors of 2022. The company has also been rated high for financial strength by industry ratings agencies, garnering an A (excellent) from AM Best and an A2 from Moody’s, which indicates a low credit risk. However, it's worth noting that AIG scored well below the industry average for customer satisfaction on the J.D. Power 2021 U.S. Individual Life Insurance Study.

John Hancock also makes regular appearances on best-of-the-industry lists, landing immediately above AIG on U.S. News & World Report’s Best Life Insurance Companies of 2022 rankings. Its recent creditworthiness ratings are comparable to AIG, with an A+ (superior) from AM Best and an A1 from Moody’s, indicating  a low credit risk. Unlike AIG, however, John Hancock scored above the industry average for customer satisfaction on the J.D. Power 2021 U.S. Individual Life Insurance Study.

AIG vs. John Hancock Life Insurance Comparison of Policies and Rules

Life insurance coverage is governed by policies and rules set by both the individual insurer and the state of residence. Company-specific terms and rules, which may include policy limitations and exclusions, are detailed in the contract, which you’ll sign upon issue. Policies set by state law, which may also be detailed in the contract, typically govern issues such as the availability of a free look period and the amount of time the company has to pay the death benefit.

In terms of general policy management guidelines, both John Hancock and AIG require customers to make policy changes, including address updates and beneficiary changes, either in writing or using the companies’ online policyholder portals. These companies also support online premium payments and claims filing.

Choosing the Right Insurance Company for You

For many shoppers, choosing the right life insurance company comes down to finding a suitable policy at the right price. However, factors such as customer service standards and the availability of online tools can play a large role in policyholder satisfaction, and consumers may also want to consider a company’s financial strength and overall reputation to make sure that the money they invest is secure and will be there when their loved ones need it most.

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