Compare Protective Life Insurance vs. AIG Life Insurance

Protective Life and AIG are two of the oldest and most reputable life insurance companies in America. They have excellent financial stability, with A.M. Best rating them as Excellent or higher. Both companies offer a diverse suite of competitively priced life insurance products. If you take out a policy from either of these companies, you can be confident in your purchase.

But just because Protective Life and AIG have equally stellar reputations doesn't mean they're always equally best for a particular person. Important differences exist in the two companies' policy lineups, pricing structures and benefits. Your unique applicant profile determines which company has the best policy at the best price for you. That is why it is important to shop around and compare quotes.

This guide provides an overview of the key differences found when we compare Protective Life insurance vs. AIG life insurance.

Compare Protective Life Insurance vs. AIG Life Insurance: Policy Offerings

Protective Life and AIG both offer an array of life insurance products to fit different needs and budgets. You can find term life or permanent life insurance at both companies. If you're looking for a more niche product such as variable universal life or indexed universal life, you could be limited to one company or the other.

The list below describes the policy offerings at each company.

Life Insurance Products Offered by Both Companies

• Term life insurance: Term life is a great option if you want the most coverage for the lowest rates, particularly if you only need it for a specific period of time, such as while your kids are still minors. Because it offers temporary rather than permanent coverage, it is much cheaper than whole life insurance for the same amount of insurance.
• Whole life insurance: Whole life is ideal if you want coverage that never goes away and never goes up in price. The premium and benefit amount you lock in today stays with you forever (as long as your premium payments stay up to date). The downside is that because the insurance company knows it will have to pay out on the policy at some point, it charges you more in premiums.
• Universal life insurance: Universal life offers permanent insurance with more flexibility. During periods when you need more coverage, you can increase your premium payments and receive a higher death benefit. You can do the opposite when you need less coverage or wish to save money. Both whole life and universal life policies accrue cash value at a fixed rate of interest, so they double as insurance and investment products.

Life Insurance Products Offered by Protective Life Only

• Variable life insurance: Variable life has the same features as whole life insurance, only the cash value that accrues is invested in the market. So, it offers more upside from an investment perspective but exposes you to more risk.
• Indexed universal life insurance: Indexed universal life offers the same benefits as universal life insurance in terms of having flexible premiums and benefit amounts that can be adjusted up and down as your needs change. The difference is in how the cash value is invested. With an indexed policy, the cash value is pegged to a market index, such as the S&P 500, and as the index grows or decreases in value, so does the cash value of your policy.

Life Insurance Products Offered by AIG Only

• Variable universal life insurance: Variable universal life is a type of universal life insurance in which the cash value is invested in market equities rather than growing at a fixed rate of interest.

Is Protective Cheaper Than AIG for Life Insurance?

Protective Life and AIG both offer competitive premiums for life insurance, particularly if you're a nonsmoker and have little to no preexisting health conditions. For younger and middle-aged policyholders, the premium differences between Protective Life and AIG are minimal, even negligible. Once you reach 60, you can usually find lower average premiums at Protective Life, but keep in mind that everyone is different. Just because the tables show that an average person of your age and gender can find a cheaper policy with one company doesn't necessarily mean that will be the case for you.

That said, the table below shows the average monthly premiums paid by a healthy nonsmoker for a 20-year term policy with a death benefit of $250,000.

Source: Finder

Which Company Offers Better Policy Riders?

If you have unique life insurance needs, policy riders can help you customize your plan to give you protection in areas you need it most. Protective Life and AIG offer two of the largest arrays of policy riders in the industry. The list below explains the types of riders available from each company.

Policy Riders Offered by Both Companies

• Waiver of premium rider: This rider waives your premiums if you become terminally or critically ill.
• Accelerated death benefit rider: This rider accelerates your death benefit if you become terminally or critically ill.
• Accidental death benefit rider: This rider increases your benefit amount if your death is accidental.
• Child rider: This rider provides an additional death benefit covering your minor child.

Policy Riders Offered by Protective Life Only

• Disability income rider: This rider provides an additional benefit if you become disabled and cannot work on a long-term basis.
• Term insurance rider: This rider allows you to stack additional term coverage on top of your permanent life policy without having to go through a separate underwriting process.
• Guaranteed insurability rider: This rider allows you to increase your coverage at any point without an additional medical exam.

Policy Riders Offered by AIG Only

• Terminal illness rider: This rider provides early access to your death benefit if you become terminally ill.
• Lifestyle income rider: This rider gives you the right to withdraw money from your policy's cash value without paying a penalty.

Protect Your Family With the Best Life Insurance Policy

Life insurance is too important of a decision to make haphazardly. Your family deserves the best protection, and the way to ensure you get it is to shop around and compare quotes from reputable companies such as Protective Life and AIG. A financial advisor can help you find the best policy for your family's needs.