Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent Benji Carr

UPDATED: Jul 21, 2021

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The Facts of Life

  • The AIG vs. State Farm life insurance rates are similar for smokers but cheaper with AIG for healthy adults
  • State Farm’s financial strength ratings are superior to AIG’s
  • State Farm boasts industry-leading customer satisfaction ratings while AIG is ranked below the industry average

If you’re comparing the leading term life insurance providers, looking at AIG vs. State Farm is a good place to start. Each company is considered a staple in the insurance industry nationwide.

To help you decide which is better for life insurance, we’ll highlight the AIG vs. State Farm life insurance policy options, term life insurance rates, and each company’s ratings and reviews.

In a few moments, you should have everything you need to choose between AIG vs. State Farm. For now, take advantage of our free quote tool above to get personalized rates from life insurance companies near you.

AIG vs. State Farm: Which is the best for life insurance?

What is AIG insurance? Both AIG and State Farm are large insurance companies that offer a variety of insurance products.  If you compare AIG vs. State Farm insurance as a whole, you’ll find they each offer home, auto, and life insurance, among other products.

Most notably, AIG and State Farm are car insurance competitors. Even so, both companies offer competitive life insurance products as well. With each company, you can get term, universal, or whole life insurance.

Although both companies offer term and permanent life insurance, term life insurance tends to be the most flexible if you take advantage of life insurance riders.

AIG and State Farm’s life insurance riders offer policyholders added flexibility for peace of mind during critical life events. Some examples include:

  • Waiver of premium
  • Accidental death benefit
  • Child
  • Terminal illness
  • Accelerated death benefit
  • Spouse or other insured

It might be worthwhile to learn more about your life insurance policy options so you know what you want in a policy before you buy life insurance.

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AIG vs. State Farm: Which is the cheapest life insurance company?

For starters, term life insurance will yield the most affordable AIG or State Farm life insurance rates. These rates will vary based on factors like age, gender, policy length, and coverage amount.

AIG vs. State Farm Life Insurance Rates by Age, Gender, and Term Length for $250,000
Age and Gender10-Year Term (AIG)10-Year Term (State Farm)20-Year Term (AIG)20-Year Term (State Farm)
25 - Female$9.57$17.62$11.33$18.72
25 - Male$10.34$20.02$12.90$23.27
35 - Female$11.08$19.37$12.69$22.19
35 - Male$11.67$21.74$13.53$26.09
45 - Female$16.46$28.72$23.06$37.42
45 - Male$17.95$30.44$28.28$45.47
55 - Female$31.68$50.02$52.58$78.97
55 - Male$41.68$67.22$69.89$105.72
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When reviewing the provided AIG vs. State Farm life insurance quotes, you’ll notice that State Farm is significantly more expensive than AIG regardless of age, gender, or term length.

There are some other factors that affect life insurance rates like jobs, health, and whether or not you smoke. Each life insurance company will weigh these factors differently, so we’ll compare rates for smokers between AIG and State Farm.

AIG vs. State Farm Life Insurance Rates for Male Smokers vs. Non-Smokers by Age and Policy Length for $100,000
Age and Smoking Status10-Year (AIG)10-Year (State Farm)20-Year (AIG)20-Year (State Farm)
35 - Non-Smoker$10.64$15.23$11.17$17.57
35 - Smoker$23.26$24.36$29.60$30.10
45 - Non-Smoker$14.86$20.79$17.59$26.54
45 - Smoker$47.70$40.98$57.11$59.07
55 - Non-Smoker$26.62$34.45$37.26$50.98
55 - Smoker$82.46$79.87$126.80$133.98
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In this case, State Farm actually offers reasonable rates for smokers when compared to AIG. In short, non-smokers could expect cheaper rates from AIG while smokers may actually pay less with State Farm.

AIG vs. State Farm: Which has better ratings and reviews?

While life insurance rates are a main priority, you want to be sure you can rely on your life insurance provider to pay out your death benefit when the time comes.

AIG vs. State Farm Financial Strength Ratings and Customer Reviews
Ratings AgencyAIG RatingState Farm Rating
A.M. BestAA++
Better Business Bureau (BBB)FA+
Fitch's RatingsA+Withdrawn
J.D. Power742 (#15)838 (#1)
Standard & Poor's (S&P)A+A+
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Overall, it appears that State Farm is the superior company for financial strength. A.M. Best rates State Farm with an A++, which is the highest possible rating. AIG has a good rating but doesn’t stack up against State Farm.

State Farm also ranks above AIG for customer service, according to J.D. Power. In fact, State Farm tops the list of life insurance providers for customer service while AIG is below the industry average.

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The Better Business Bureau (BBB) reinforces the J.D. Power customer satisfaction rating as AIG remains subpar while State Farm boasts another A+ rating. This means you can expect little trouble with State Farm claims.

Beneficiaries can use the State Farm claims number to initiate a claim while they collect the documents needed to finalize the claim. AIG allows claims to be submitted online or via mail.

AIG vs. State Farm: What are the pros and cons?

It’s clear that the AIG vs. State Farm life insurance company details are strong in different areas for each company. We’ll simplify those differences below.


  • Good financial strength (both companies – State Farm superior)
  • Reasonable term life insurance for smokers (both companies)
  • Cheap term life insurance for healthy adults (AIG)
  • Excellent customer service ratings (State Farm)


  • No life insurance discounts (both companies)
  • Expensive rates for healthy adults (State Farm)
  • Subpar customer service (AIG)

As you prepare to buy AIG or State Farm life insurance, you’ll need to know what is most important for you — price or the customer service experience. AIG has cheaper rates while State Farm seems more trustworthy.

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AIG vs. State Farm: The Bottom Line

AIG and State Farm are two reputable life insurance companies that have strengths in different places. You should feel confident purchasing a policy with either company overall.

By now, you should have everything you need to compare AIG vs. State Farm. While you’re here, don’t forget to enter your ZIP code below to get free sample rates from life insurance providers near you.