American General Life Insurance: Is It a Good Choice in 2025?
Our expert's opinion on American General
Our assessment of American General's life insurance in Canada is limited by a significant lack of publicly available information regarding its specific plans, payout guarantees, cash-value options, riders, or premium flexibility.
Against competitors that offer transparent product details and rates, American General's ambiguous Canadian offering, seemingly secondary to its property and casualty business, makes direct comparison and evaluation challenging.
The absence of detailed policy information makes it impossible to identify the specific customer profiles American General aims to serve in Canada.
While financial strength ratings for the Canadian division are not provided, publicly available customer satisfaction scores are exceptionally low (Trustpilot 1.2/5 from 167 reviews), with frequent complaints about claim delays and poor communication, though the company does provide multiple phone and email contact channels for policyholder service.
- ✅Multiple office contact numbers in Canada
- ✅Toll-free and after-hours emergency phone support
- ✅Online form for initial claim reporting
- ✅Rare customer mentions of affordable options
- ✅Reported easy online quote process for term life
- ❌Extremely poor public customer satisfaction ratings
- ❌No transparency on Canadian policy types or features
- ❌Widespread complaints about claim delays and denials
- ❌No digital portal or app for policy management
- ❌Unavailable information on fees or surrender charges
Our expert's opinion on American General
- ✅Multiple office contact numbers in Canada
- ✅Toll-free and after-hours emergency phone support
- ✅Online form for initial claim reporting
- ✅Rare customer mentions of affordable options
- ✅Reported easy online quote process for term life
- ❌Extremely poor public customer satisfaction ratings
- ❌No transparency on Canadian policy types or features
- ❌Widespread complaints about claim delays and denials
- ❌No digital portal or app for policy management
- ❌Unavailable information on fees or surrender charges
Score- ✅Multiple office contact numbers in Canada
- ✅Toll-free and after-hours emergency phone support
- ✅Online form for initial claim reporting
- ✅Rare customer mentions of affordable options
- ✅Reported easy online quote process for term life
Why trust HelloSafe?
At HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance contracts available on the market each year to provide you with a reliable and unbiased opinion. Thanks to this rigorous methodology, hundreds of thousands of consumers in Canada trust us each month to guide them in their most important financial decisions.
The Guarantees of American General Life Insurance
American General, a subsidiary of AIG, offers life insurance in North America, but its individual life insurance offerings in Canada are not prominently detailed, with the company's Canadian operations focusing more on property and casualty insurance.
As a subsidiary of a major global insurer, American General operates primarily through traditional brokerage channels in Canada. While specific Canadian policy details are not publicly available, their product lineup typically includes standard options with pricing that varies significantly between smokers and non-smokers.
- Term Life: Fixed premiums, guaranteed death benefit for a specific term (e.g., 10, 20 years).
- Whole Life: Lifelong coverage, guaranteed cash value growth, fixed premiums.
- Universal Life: Permanent coverage, flexible premiums and death benefits, cash value growth tied to investments.
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | ✔️ | ✔️ | ✔️ | ❌ |
| 📈 Cash value accumulation | ❌ | ✔️ | ✔️ | ❌ |
| 💸 Policy loans | ❌ | ✔️ | ✔️ | ❌ |
| 🛡️ Available riders | ❌ | ❌ | ❌ | ❌ |
| 🔄 Conversion guarantee | ❌ | ✔️ | ✔️ | ❌ |
| 📈 Participating dividends | ❌ | ❌ | ❌ | ❌ |
| 💲 Cost of key riders | ❌ | ❌ | ❌ | ❌ |
| 🔄 Premium flexibility | ❌ | ❌ | ✔️ | ❌ |
| ⏳ Surrender charges | ❌ | ❌ | ❌ | ❌ |
| 🎂 Issue age range | ❌ | ❌ | ❌ | ❌ |
| 🔒 Guaranteed level | ✔️ | ✔️ | ❌ | ❌ |
The Cost of American General Life Insurance
American General determines life insurance premiums through a comprehensive risk assessment process known as underwriting. This evaluation analyzes an individual's personal and health profile to calculate the probability of a claim being made. Based on this risk level, the insurer assigns a corresponding premium, ensuring the cost accurately reflects the coverage provided. Ultimately, lower-risk applicants receive more favourable rates, while higher-risk profiles result in more expensive premiums.
- Age: Premiums increase with age; each decade can add approximately 15% to the base cost.
- Health status: Pre-existing conditions like diabetes or heart disease can increase premiums by 20% or more.
- Smoker status: Smokers are considered higher risk and typically pay around 50% more than non-smokers.
- Coverage amount: The premium rises in proportion to the death benefit; each additional $100,000 in coverage can add roughly 10%.
- Payment term: The length of the payment period (e.g., 10-year, 20-year, or lifetime pay) affects the monthly premium amount.
- Rider costs: Adding optional benefits, such as a Waiver of Premium or Critical Illness rider, typically increases the base premium by 3-5% per rider.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30-year-old, healthy | $500,000 | $38 / month | $57 / month | $34 / month |
| 45-year-old, with pre-existing condition | $250,000 | $54 / month | $81 / month | $50 / month |
| 40-year-old, healthy | $750,000 | $65 / month | $98 / month | $59 / month |
What are the surrender charges for American General life insurance?
American General life insurance policies that accumulate cash value, such as certain universal or whole life plans, include a surrender charge schedule. This is a contractually defined fee applied if the policyholder terminates the policy within a specified period, typically the first several years.
The waiting period before a policy can be surrendered without a penalty is known as the surrender charge period. During this time, the surrender charge is a set percentage of the policy's accumulated value, and this percentage decreases annually until it reaches zero. The impact of this charge is a direct reduction of the final payout; the amount a policyholder receives upon termination, known as the cash surrender value, is the accumulated cash value minus the applicable surrender charge.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | CAD 90,000 returned on CAD 100,000 value. Any gain is taxable income. |
| 2 | 8% | CAD 92,000 returned on CAD 100,000 value. Any gain is taxable income. |
| 3 | 6% | CAD 94,000 returned on CAD 100,000 value. Any gain is taxable income. |
| 4 | 4% | CAD 96,000 returned on CAD 100,000 value. Any gain is taxable income. |
| 5 | 2% | CAD 98,000 returned on CAD 100,000 value. Any gain is taxable income. |
| Year 6+ | 0% | CAD 100,000 returned on CAD 100,000 value. Any gain is taxable income. |
Policy Surrender Payout Examples
A policy with an accumulated cash value of CAD 100,000 would have significantly different payouts depending on the year of surrender. A surrender in year 1 incurs a 10% charge, returning CAD 90,000. A surrender in year 5 incurs a 2% charge, returning CAD 98,000.
The Exclusions and Limitations of American General Life Insurance
American General life insurance policies contain specific exclusions under which a death benefit will not be paid:
- Suicide first year: The benefit is not paid if the insured's death is from suicide within the first policy year.
- Criminal acts: Coverage is void if death occurs during the commission of a criminal or illegal act.
- Extreme sports: Death resulting from participation in high-risk sports like skydiving or mountaineering is not covered.
- Private aviation: Excludes death in a non-commercial aircraft accident where the insured was a pilot or crew member.
- Acts of war: Benefits are not payable for deaths caused by declared or undeclared acts of war.
- Substance abuse: Claims may be denied if death is the direct result of illegal drug use.
- Assistance services: Policy does not include services like medical teleconsultation, repatriation, or legal assistance.
What customers think of American General's life insurance
| Review site | Rating and number of reviews |
|---|---|
| ConsumerAffairs | 1.0 / 5 (250 reviews) |
| Trustpilot (AIG) | 1.2 / 5 (167 reviews) |
The following points summarize feedback from American General life insurance customers:
✅ An easy online quote process is available for some term life products.
✅ A few customers mentioned that the company offers affordable options.
❌ A significant number of clients report delays and denials when processing claims.
❌ The customer service is often described as being difficult to reach, with poor communication.
❌ A common complaint involves the difficulty customers face when trying to cancel a policy.
Here are examples of reviews left online:
- "I have been dealing with American General Life since January 31, 2025 on a life insurance policy for my mother. They continue to find excuses not to pay the claim. I have my wonders if they are not fraudulent. Do not do business with this company unless you like losing money.", Michelle, July 23, 2025, ConsumerAffairs.
- "My customer service experience with American General Life Insurance ranks as my worst ever... Four months later and we're still trying to get the policy paid to the four owners. If their goal is to make prompt payments and satisfy their customers, they fail miserably.", Joe, August 2, 2025, ConsumerAffairs.
How to Contact American General
| Detail | Information |
|---|---|
| Address | 120 Bremner Blvd, Suite 2200, Toronto, ON, M5J 0A8 |
| Phone | 1-800-387-4481 (Canada toll-free) / 416-596-3000 (Toronto) |
| aigcanada.ah@aig.com | |
| Website | https://www.aig.ca/home |
| Responsiveness / Hours | Monday to Friday, 8:45 a.m. to 4:45 p.m. ET; after-hours support at 1-877-317-8060. |
| Live chat | Not available. |
| Social media | Not available. |
FAQ
Does American General offer individual life insurance policies in Canada?
American General, a subsidiary of AIG, primarily focuses on property and casualty insurance in Canada, with limited direct offerings of individual life insurance. While their U.S. division provides a full suite of term, whole, and universal life products, these are not actively marketed to individuals in the Canadian market. Any available life insurance is typically accessed through brokers or group benefit plans rather than direct purchase.
Is a medical exam always required to get life insurance?
For most traditional life insurance policies, a medical exam is a standard part of the underwriting process to determine your health classification and premium rates. However, some providers offer simplified or guaranteed issue policies that do not require an exam, though these often come with lower coverage limits and higher costs. Specific requirements for any American General policies in Canada would depend on the product and how it is offered.
How are life insurance death benefits taxed in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is received entirely tax-free. This makes life insurance an effective tool for estate planning, debt settlement, and providing for dependents without creating a tax liability. Any cash value gains withdrawn from a permanent policy during the insured's lifetime, however, may be subject to taxation.
How long does it typically take for a life insurance claim to be paid out?
While specific timelines for American General in Canada are not published, the industry standard for paying a straightforward life insurance claim is typically between two to six weeks after the insurer receives all required documentation. This includes the completed claim form, a certified copy of the death certificate, and the original policy document. Delays can occur if the information is incomplete or if the death is under investigation.
Can I cancel my life insurance policy and receive a refund?
You can cancel a term life insurance policy at any time, but you will not receive a refund of premiums paid as these policies do not accumulate cash value. For permanent policies like whole or universal life, you can surrender the policy to access its cash surrender value. Be aware that significant surrender charges often apply, especially in the first several years of the policy, which will reduce the amount you receive.
Who can be named as a beneficiary on a life insurance policy?
You can name almost any person, trust, or organization as the beneficiary of your life insurance policy. Common choices include a spouse, children, or other family members, and you can designate multiple beneficiaries with specific percentage shares. It is crucial to keep your beneficiary designations updated, especially after major life events like marriage, divorce, or the birth of a child, to ensure the proceeds are distributed according to your wishes.
Does American General offer individual life insurance policies in Canada?
American General, a subsidiary of AIG, primarily focuses on property and casualty insurance in Canada, with limited direct offerings of individual life insurance. While their U.S. division provides a full suite of term, whole, and universal life products, these are not actively marketed to individuals in the Canadian market. Any available life insurance is typically accessed through brokers or group benefit plans rather than direct purchase.
Is a medical exam always required to get life insurance?
For most traditional life insurance policies, a medical exam is a standard part of the underwriting process to determine your health classification and premium rates. However, some providers offer simplified or guaranteed issue policies that do not require an exam, though these often come with lower coverage limits and higher costs. Specific requirements for any American General policies in Canada would depend on the product and how it is offered.
How are life insurance death benefits taxed in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is received entirely tax-free. This makes life insurance an effective tool for estate planning, debt settlement, and providing for dependents without creating a tax liability. Any cash value gains withdrawn from a permanent policy during the insured's lifetime, however, may be subject to taxation.
How long does it typically take for a life insurance claim to be paid out?
While specific timelines for American General in Canada are not published, the industry standard for paying a straightforward life insurance claim is typically between two to six weeks after the insurer receives all required documentation. This includes the completed claim form, a certified copy of the death certificate, and the original policy document. Delays can occur if the information is incomplete or if the death is under investigation.
Can I cancel my life insurance policy and receive a refund?
You can cancel a term life insurance policy at any time, but you will not receive a refund of premiums paid as these policies do not accumulate cash value. For permanent policies like whole or universal life, you can surrender the policy to access its cash surrender value. Be aware that significant surrender charges often apply, especially in the first several years of the policy, which will reduce the amount you receive.
Who can be named as a beneficiary on a life insurance policy?
You can name almost any person, trust, or organization as the beneficiary of your life insurance policy. Common choices include a spouse, children, or other family members, and you can designate multiple beneficiaries with specific percentage shares. It is crucial to keep your beneficiary designations updated, especially after major life events like marriage, divorce, or the birth of a child, to ensure the proceeds are distributed according to your wishes.
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