American General Life at a Glance: Rates, Products and Reviews

As part of the Corebridge Financial and AIG families, American General Life Insurance Company specializes in retirement planning solutions. It especially features several types of annuities, including fixed, index and variable annuity products. With optional riders and incorporated death benefits, American General offers easily customizable annuities that prepare you with well-rounded retirement planning.

American General Life Insurance Company is an annuity issuer for Corebridge Financial products. It is a subsidiary of Corebridge Financial, which rebranded in 2021 from AIG Life and Retirement. Both American General Life and Corebridge Financial are a part of the larger AIG corporation, providing a solid backbone for their financial products.

As an annuity provider, American General Life shows a strong commitment to customer service, offering personalized quotes based on your conversation with a dedicated representative. It is all part of keeping its promise to ensure one’s financial goals remain at the forefront while benefiting from flexible annuity solutions with the added expertise of professional financial management.

Today, CoreBridge Financial is one of the largest retirement and insurance providers in the United States. It has partnered with two origin and asset management platforms, Blackstone and BlackRock, to provide a hybrid investment management model. Together, these industry experts are available to provide an additional layer of expertise for your financial investments.

American General Life Insurance Company offers fixed, index and variable annuities.

Three types of fixed annuity products are available through American General Life: the Assured Edge Income Builder, the American Pathway and the new Pathway Choice fixed annuity.

The Assured Edge Income Builder is a way to generate a steady stream of fixed income. There are several benefits incorporated, such as increased control, greater flexibility and fewer fees. You remain in full control with the option to change the covered party at any time (such as in the event of marriage or divorce). You will be able to withdraw up to 10% of the contract value without fees, and there are even considerations in place should you require extended or terminal care.

The American Pathway fixed annuity is another option, which offers guaranteed interest based on set interest rate periods. You can enjoy tax-deferred growth with a guaranteed death benefit included, providing your family with extra security during a tough time.

The new Pathway Choice fixed annuity is a deferred annuity with interest rates based around your deposit amount. It gives guaranteed interest earnings with partial access to your funds early and without any penalties.

American General Life Insurance Company also offered fixed index annuities in the form of the Power Series Index Annuity. This comes with your choice of two separate riders: the Lifetime Income Max rider and the Lifetime Income Plus Multiplier Flex. Each carries an annual fee of 1% of your income base.

If you are not taking your withdrawals right away, the Lifetime Income Max rider is worth a second look. It guarantees an income credit of 10% annually before you begin withdrawals and allows you to withdraw up to 7.35% annually for life. This gives you access to funds while growing your income each year.

There is also the Lifetime Income Plus Multiplier Flex rider. This is intended for after you begin taking withdrawals, allowing you to still grow your income over time. Any interest earned is matched either until the age of 95 or until the value of the contract is exhausted.

You can also benefit from credits that equal twice the interest you earned prior to taking payments.

American General Life also specializes in variable annuities, which are offered under the name Polaris.

The Polaris Variable Annuity features a death benefit with built-in safeguards from market fluctuations. There are three income options available with separate annual withdrawal rates based on your age when you begin taking income.

Three death benefit options are available, including a Contract Value Death Benefit, Return of Purchase Payment Death Benefit and Maximum Anniversary Value Death Benefit. There is also the option of adding on the Polaris Income Plus Daily Flex rider. This rider is excellent for daily step-ups in lieu of the more typical annual or monthly options.

With American General Life, you can benefit from guaranteed interest, offering you protected income for life.

Its fixed annuities feature guaranteed income that increases with each year. With protection from market fluctuations, options like the Assured Edge Income Builder are a stable way to grow retirement income until you are ready to begin taking income. The new Corebridge Pathway Choice Fixed Annuity is a highlight, putting control into your hands by allowing you to choose your interest rate based on the amount you deposit.

American General Life’s fixed index annuities provides credits for every year you defer income and its riders allow you to customize your income. Meanwhile, the variable annuities ensure increasing income when you defer income and allow you to invest in 12 total asset classes.

American General Life Insurance Company maintains a strong reputation for financial health, earning an A (Excellent) rating from AM Best, reflecting its reliability and stability. For 2024, it also received an A- rating from S&P Global, further underscoring its sound financial standing. Additionally, its parent company, Corebridge Financial, demonstrates exceptional strength with an A+ (Strong) rating from Fitch and an A2 (Good) rating from Moody’s.

These ratings signify that American General Life is well-positioned to meet its financial commitments, offering greater dependability compared to less financially secure institutions.

As part of Corebridge Financial, American General Life benefits from the success and resilience of its parent company. Corebridge ranked 2nd in total annuity sales, according to U.S. LIMRA rankings for Q1 2024, with $393 billion in assets under management and administration as of March 2024 and $10.2 billion in reserves for investment contracts. This robust financial foundation reflects Corebridge’s strong market presence and solidifies its position as a stable choice for investors seeking a reliable partner.

American General Life is not accredited by the Better Business Bureau (BBB) and holds a disappointing F rating based on over 50 customer reviews. Corebridge Financial and AIG do not fare any better, sharing an F rating with no BBB accreditation.

However, it is a different story when looking at J.D. Power customer satisfaction ratings. Under AIG, American General ranked above average in the 2023 J.D. Power Customer Satisfaction Index Rating for annuities. It coincides with its 2022 performance where it also ranked toward the top of the list.

The National Association of Insurance Commissioners (NAIC) rates companies based on the number of complaints it receives relative to its size.

American General Life Insurance Company has a below-average NAIC rating of 0.54 based on a national baseline of 1.00. This means its customers are generally satisfied based on the low number of customer complaints it receives. However, when you look specifically at its performance for individual American General annuities, it has a total score of 2.47, which is more than double the average.

American General Life Insurance Company offers annuity products aimed at helping individuals build a secure retirement. While these annuities can provide valuable financial support, they also come with certain drawbacks. Here’s a balanced look at the pros and cons to consider when deciding if an American General Life annuity suits your retirement plans.

American General Life offers several choices for annuities, including fixed and variable options. It rates well for customer satisfaction in J.D. Power, although its BBB rating leaves something to be desired. Still, it remains a competitive option for annuities with its generous product offerings and strong financial backing from the combined power of Corebridge Financial and AIG.

Editor Norah Layne contributed to this article.