AIG vs. Mutual of Omaha Life Insurance

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  • AIG and Mutual of Omaha have provided life insurance to consumers for more than a century. Explore similarities and differences between these two companies.

With more than 800 life insurance and annuities providers in the United States today, choosing a company to work with can feel overwhelming. If you want to make smart coverage decisions, understanding what a life insurance company has to offer is a good place to start. AIG and Mutual of Omaha are both reputable companies that have been providing life insurance and other financial solutions to U.S. consumers for more than a century. However, there are distinct differences in their offerings. Let’s take a closer look at these industry centenarians.

AIG Insurance Summary

American International Group, or AIG, has been selling insurance solutions for more than a hundred years. AIG has a dedicated life and retirement segment consisting of several major providers, including American General Life Insurance Company, which handles most of its life insurance plans. Coverage, including whole, term and universal life plans, is currently available in every state, with benefits up to $2 million.  

AIG’s permanent coverage options consist primarily of universal life plans, which offer a guaranteed death benefit and the opportunity to accrue cash value through investments. For families who only need a modest amount of coverage, AIG offers guaranteed-issue whole life plans. These policies are designed to help families cover costs associated with end-of-life expenses, including funerals and medical bills, and benefits range from $5,000 to $25,000. AIG also offers term plans, which offer more affordable coverage options for individuals with short terms needs such as mortgages or business loans. These plans have a minimum death benefit of $100,000, and are also available in 18 different durations. They can typically be renewed annually, and riders may be added on at the time of purchase to supplement coverage.

Mutual of Omaha Life Insurance Summary

Mutual of Omaha began selling insurance in Nebraska in 1909. Currently, the company offers an extensive selection of whole, term and universal life insurance products for individuals, and an accidental death plan that may be used to supplement a standard life insurance policy. Many of its products also offer optional riders, including dependent children's coverage, which may be added on at the time of purchase to supplement policies.

Mutual of Omaha’s term policies offer level premium payments, lump-sum payouts and the option to convert to permanent coverage. Terms range from 10 to 30 years, with coverage of $100,000 or more available to individuals between the ages of 18 and 80, depending on the plan. Policyholders who want lifetime coverage can select from the company's whole and universal plans, which include cash value accounts that may be accessed for any reason during the policyholder’s lifetime.

AIG vs. Mutual of Omaha Life Insurance Comparison of Accessibility

Although affordable life insurance coverage may be readily available for young, healthy applicants, options for higher-risk individuals are limited at some companies. As industry leaders, AIG and Mutual of Omaha have options for high-risk individuals who may be denied coverage at other companies. Both companies sell guaranteed-issue products that let high-risk applicants secure modest amounts of coverage without having to answer extensive health and lifestyle questions or undergo a medical exam.

AIG’s guaranteed-issue whole life insurance product is designed to cover adults between the ages of 50 and 80 and includes benefits that grant the insured early access to funds if they’re diagnosed with a critical or terminal illness. Mutual of Omaha also offers guaranteed-issue whole life insurance to applicants between the ages of 45 and 85 in most states. However, guaranteed-issue coverage under both companies typically provides a modest death benefit designed primarily to help families pay for final expenses after a loved one dies.

AIG vs. Mutual of Omaha Life Insurance Comparison of Company Ratings

Mutual of Omaha is a Better Business Bureau-accredited company, with a BBB rating of A+. AIG isn’t accredited by the Better Business Bureau but currently has a BBB rating of A- due to unresolved complaints. However, both companies consistently receive high marks for financial strength from major financial credit ratings agencies. While Mutual of Omaha currently maintains an A+ rating from AM Best, which indicates a superior ability to meet its financial obligations, AIG has a solid rating of A, which indicates an excellent ability to meet its financial obligations. Both companies also rate highly for creditworthiness at Moody’s and S&P Global, and are considered solid, stable and secure for investors.

AIG and Mutual of Omaha also appear on several of U.S. News and World Report’s recent best-of-the-industry lists, including Best Life Insurance Companies of 2022 and Best Life Insurance Companies for Seniors of 2022. Both companies also landed on Forbes' America's Best Life Insurance Companies 2022 list.

AIG vs. Mutual of Omaha Life Insurance Comparison of Policies and Rules

Policies and rules governing life insurance coverage are generally determined by either the state of residence or the issuing company and are typically defined in a plan’s contract. These terms often include information about policy changes and cancellations, coverage limitations or exclusions and grace periods for late payments, and many states grant new policyholders a free look period during which they may thoroughly review the terms of their contracts and cancel if they're dissatisfied for any reason.

Both Mutual of Omaha and AIG policies permit customers to update basic plan information, such as addresses and beneficiaries, through their online policy management systems or by sending requests in writing directly to each company. Customers of these companies may also make premium payments and file claims online. Policyholders who have questions or issues may contact either company's customer service department via a toll-free phone number or via a secure online message.

Choosing the Right Insurance Company for You

Buying the right life insurance policy can play a crucial role in securing your family’s financial future after you’re gone, and choosing the right insurance company is an important part of that. Although cost is likely to factor into your decision, you may find that other considerations are equally important, including how easy it is to apply for coverage and whether the company offers online tools that let you self-manage your account. Most importantly, you should feel comfortable that the company you invest with is financially stable so that your family will get the benefits they need at the time when they need them most.

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