Compare AIG vs. Pacific Life Insurance

AIG and Pacific Life are both more than 100 years old and rated as excellent to superior by A.M. Best. They are two of the most recognizable names in the life insurance industry, both are financially stable and secure, and you can obtain excellent protection for your family against a worst-case-scenario event from either company.

That said, AIG and Pacific Life have a few notable differences in the products they offer and the premiums they charge. This guide compares AIG vs. Pacific Life insurance side by side, looking at the products and riders available from each and the monthly premiums for a typical policyholder.

Compare AIG vs. Pacific Life Insurance Premiums

For a healthy nonsmoker between 20 and 50, term life premiums from AIG and Pacific Life are very similar. At age 60, Pacific Life offers notably lower rates on average than AIG. It's worth noting, however, that each person's risk profile is different, and just because the average policyholder in a certain age band can find cheaper coverage from one company doesn't mean that every policyholder in that age band can. You should get quotes from both companies and compare them closely before making a decision.

The following table lists the average monthly term life insurance premiums costs from both companies for a 20-, 30-, 40-, 50- and 60-year-old applicant.

Source: Finder 

AIG vs. Pacific Life Product Offerings

AIG and Pacific Life have similar product offerings, which include term life insurance, the average premiums of which are listed above, as well as several forms of permanent life insurance. Pacific Life offers one product — indexed universal life insurance — that isn't available through AIG.

Life Insurance Products Offered by Both Companies

• Term life insurance: Term life insurance provides coverage for a specific term, such as 10 or 20 years. When the term expires, so does the coverage. Some term life policies are convertible to permanent life insurance, while others can be renewed for a new term. Most term life policies never pay a death benefit because the policyholder is still alive at the term expiry. This allows insurers to charge lower premiums than they do for permanent life insurance.
• Whole life insurance: Whole life insurance provides coverage for the rest of the policyholder's life (as long as they don't lapse on their premiums). The monthly premiums are fixed, and so is the death benefit. Whole life policies also accrue cash value at a fixed rate of interest, which the policyholder can access while still alive, similar to an investment account. Because the insurance company knows it will have to pay a death benefit at some point, it charges more in premiums for whole life to avoid losing money.
• Universal life insurance: Universal life insurance is similar to whole life insurance, except neither the death benefit nor the premiums are fixed. Both can be adjusted up and down by the policyholder as their coverage needs change. Like whole life insurance, universal life policies accrue cash value.
• Variable universal life insurance: Variable universal life insurance works just like universal life insurance, with one major difference. Rather than growing at a fixed rate of interest, the cash value is invested in the market, exposing it to greater growth potential but also greater risks.

Life Insurance Products Offered by Pacific Life Only

• Indexed universal life insurance: Indexed universal life insurance is similar to variable universal life insurance, only instead of the cash value being invested directly into the market via stocks and money market funds, it is pegged to an equity index (such as the S&P) and moves up and down with that index.

AIG vs. Pacific Life Policy Riders

Both AIG and Pacific Life offer a number of policy riders that provide additional benefits in defined situations. The following list explains each rider and whether it is offered by one or both companies.

Riders Offered by Both Companies

• Waiver of premium rider: The waiver of premium rider lets a policyholder waive their premiums if diagnosed with a qualifying serious or critical illness.
• Accelerated death benefit rider: The accelerated death benefit rider lets a policyholder access their death benefit before they die if diagnosed with a qualifying serious or critical illness.
• Child rider: The child rider provides an additional death benefit to pay out if the policyholder's minor child dies while the policy is active.

Riders Offered by AIG Only

• Accidental death benefit rider: The accidental death benefit rider pays an additional benefit if the policyholder's death results from a qualifying accident.
• Terminal illness rider: The terminal illness rider allows the policyholder to access their death benefit before they die if diagnosed with a terminal illness.
• Lifestyle income rider: The lifestyle income rider, available on whole life, universal life and variable universal life policies, provides withdrawal benefits regardless of the cash surrender value of the policy.

Riders Offered by Pacific Life Only

• Conversion rider: The conversion rider allows the policyholder to convert a term life policy to a form of permanent life insurance without a medical exam.
• Long-term care rider: The long-term care rider allows the policyholder to access their death benefit before they die to pay long-term care costs.

Financial Strength and Stability

AIG and Pacific Life both receive high marks for financial strength and stability. A.M. Best gives Pacific Life an A+ (Superior) rating and rates AIG as A (Excellent). The slightly lower mark for AIG is likely a holdover from the temporary financial issues suffered by the company during the 2008 market crash. However, the company has recovered strongly, bringing in over $52 billion in revenue for 2021.

Choosing the Right Life Insurance Policy

You can find a high-quality life insurance policy whether you purchase it from AIG or Pacific Life. But each company offers different niche products that might be better depending on your family's unique needs. A financial advisor can help you consider your options and choose the right life insurance to protect your family.