In Kiplinger’s Personal Finance magazine, Kimberly Lankford advised individuals with annuities or life insurance policies from AIG to sit tight. Despite the well-publicized struggles of its other divisions, the life insurance subsidiaries are mostly unaffected and currently have an A rating from A.M. Best (under review with negative implications). State capital requirements mean that AIG has enough money in reserve to pay claims.
Variable annuities from AIG (e.g. the Vanguard variable annuity) are also secure, says Kimberly, since they are invested in mutual funds through entirely separate accounts. Annuities will be paid out normally.
If you abandon your AIG annuity or insurance policy, you may be subject to surrender penalties, cancellation charges, and/or higher premiums (lower annuity rates). In addition, the agent that sells you the new policy might be paid an additional commission if you switch.