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American General Life Insurance Review

American General Life InsuranceAmerican General Life and Accident Insurance Company (AGLA) is a company that offers several life insurance options for their customers. AGLA considers themselves a “middle market” company, which means that they consider themselves to be a mid-sized business. This American General Life Insurance review will tell you all you need to know about this insurance provider.

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American General was founded in February 28, 1900 as the National Sick and Accident Association of Nashville. Since then they have been purchased two times, first in 1968 by NLT and the second time in 1982 by American General Corporation (ACG). The company has grown steadily every since.

The ALGA enjoys keeping their customers up to date with technology. You will find that American General has a Facebook page, a Twitter page and have YouTube videos explaining different services that they offer. In addition, they are a member of the BBB.

AGLA has a special interest in businesses for women and donates both time and money to help women start and build their own businesses.

American General Life Insurance Review and Your Choices

American General offers universal life insurance, whole life insurance, term life insurance, accident and health insurance and quality of life insurance.

Universal life insurance is insurance that allows you to collect cash on your policy. Your policy must earn value first, but once it does, you can withdraw money from your policy in emergencies. The amount of money that you take from your policy is deducted from your overall benefit.

Whole life is insurance that lasts for your whole life while term life is applied for a specific amount of time (term). Both options have merit but which one is best depends on your situation.

Quality of life insurance is essentially life insurance that pays out if you are still alive but an accident or an illness makes it impossible to live as you were before. Instead of naming a beneficiary, you are the beneficiary of this policy.

Accident and health insurance options include accident insurance, cancer insurance, critical illness insurance and disability income insurance.

AGLA also offers annuities.

As you can see, although ALGA has a variety of insurance options, they really don’t provide anything special. This can actually be detrimental to a company because a company cannot thrive if it doesn’t grow and it is necessary to offer something special because of all of the competition that exists in the insurance industry.

American General Life Insurance Review and Stability

At first glance, ALGA looks very stable with a Standard and Poor’s rating of A+, Moody’s rating of A1, a Fitch rating of A- and an A.M. Best rating of A-. The problem is, with the exception of Fitch, all of the other rating companies are currently adding a negative outlook caveat to each of the ratings.

What this means is that these companies feel that ALGA cannot sustain their current level of policy writing versus payouts and that there is some concern about the company’s financial future. This is important for you because the benefit of a life insurance policy or an annuity cannot be paid if the company fails; this will mean that your premiums are lost as well.

While a negative outlook doesn’t necessarily mean that ALGA will fail, it is certainly better to be safe than sorry when it comes to your money. Take the time to shop around and consider purchasing from a company that does not have a negative outlook.

American General Life Insurance Review and the Bottom Line

The truth is that American General has enjoyed a very fruitful lifetime of selling life insurance. Currently they are struggling to make ends meet financially speaking, which means that you should use caution when purchasing products from this company.

Your insurance policies and annuities are only as good as the companies that you purchase them from and that should be an important factor when making your decision about your life insurance options.

It is very possible that ALGA will continue to thrive, that their poor general outlook by rating companies is due to a struggling economy, and that when the economy gets better they will get better. If you want to purchase insurance products today, however, you may want to give ALGA a pass until things are a bit more stable.

You can look at the cost of life insurance from other life insurance companies by using our free quote too. Comparing companies is the easiest way to see how much your premiums will cost and the difference in price between companies.

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