The basic steps to withdraw money from AIG online
AIG is primarily an insurance company, not a bank, so the withdrawal process depends on which AIG product you hold. If you have an AIG annuity, life insurance policy with cash value, or a brokerage account through AIG, you access withdrawals through your online account portal. Log in with your username and password, navigate to the account or policy section, and look for "withdraw," "request distribution," or "take a loan" — the exact wording varies by product type.
If you have money held in an AIG-affiliated bank account or money market account, the withdrawal works like any other bank account: you can transfer funds to another bank account, request a check, or use a debit card if one is issued. The speed depends on the withdrawal method you choose and whether the request is processed during business hours.
Before you withdraw, check your account documents or policy paperwork for any restrictions. Some products charge surrender fees, require a waiting period, or have tax consequences if you withdraw before a certain age or date.
Key Takeaways
- AIG annuities and life insurance policies with cash value require you to request a withdrawal or distribution through your online account, not a simple transfer like a bank account.
- Withdrawals from annuities before age 59½ may trigger a 10% early withdrawal penalty plus income tax, depending on the product and how long you have held it.
- Some AIG products charge surrender fees if you withdraw within a set period after purchase, so check your policy documents before requesting money.
- Processing time ranges from a few business days for transfers to two to four weeks for insurance policy withdrawals, depending on the method and verification required.
Withdrawing from an AIG annuity online
Log into your AIG account at the website or mobile app you use to manage your policy. Once logged in, look for a section labeled "Annuity," "My Policies," or "Account Management." Select the annuity contract you want to withdraw from, then find the option for "Request a Withdrawal," "Take a Distribution," or "Surrender." AIG will ask you how much you want to withdraw and whether you want the money sent by check or electronic transfer to a bank account you provide.
AIG typically processes annuity withdrawal requests within five to ten business days if you submit during business hours and all information is complete. If you request a check by mail, add another five to seven business days for delivery. Electronic transfers to your bank account are usually faster — often three to five business days.
Before you submit the request, AIG will show you the withdrawal amount and any fees or taxes that will be withheld. Federal income tax withholding is automatic on most annuity withdrawals unless you are over 59½ and meet other conditions. If you are under 59½, the IRS may also assess a 10% early withdrawal penalty on top of income tax, though some annuities have exceptions for specific circumstances.
Withdrawing from an AIG life insurance policy with cash value
If your AIG life insurance policy has built up cash value, you have two withdrawal options online: a direct withdrawal or a policy loan. A direct withdrawal reduces your death benefit and is permanent. A policy loan lets you borrow against the cash value and repay it later, keeping your death benefit intact. Both are requested through your online account under "Policy Services" or "Loans and Withdrawals."
Direct withdrawals are processed in seven to ten business days. Policy loans may take longer — typically two to four weeks — because AIG needs to verify the loan amount and set up repayment terms. The interest rate on a policy loan varies by policy and current market conditions; AIG will disclose the rate before you accept the loan.
Withdrawals from life insurance cash value are generally not taxed on the amount you contributed (your basis), but withdrawals above your basis may be taxed as income. If you surrender the entire policy, you may owe taxes on the difference between what you withdraw and what you paid in premiums over time.
Withdrawing from an AIG brokerage or investment account
If you hold stocks, mutual funds, or other investments through an AIG brokerage account, log into your account and navigate to "Transfers" or "Withdraw Funds." You can transfer money to a linked bank account, request a check, or move funds between accounts within AIG. Most transfers to an external bank account settle within one to three business days.
Before the transfer completes, check whether any of your holdings need to be sold to cover the withdrawal. If you are withdrawing more than your cash balance, AIG will sell securities automatically or ask you which holdings to liquidate. Selling securities may trigger capital gains tax if the investments have increased in value since you bought them.
What to do if your withdrawal is delayed or rejected
If your withdrawal request is still pending after the expected timeframe, log back into your account and check the status. Most AIG accounts show whether a request is "pending," "processing," or "completed." If it shows "pending" longer than stated, contact AIG customer service through the phone number on your account statement or the AIG website.
Withdrawals are sometimes rejected or held if AIG detects unusual activity, if your account information is incomplete, or if you have not verified your identity recently. AIG may ask you to confirm your address, provide a government ID, or answer security questions before releasing the funds. This verification can add three to five business days to the process.
If you are withdrawing a large amount, AIG may place a temporary hold for anti-fraud review. This is standard practice and does not mean there is a problem with your account. Ask the customer service representative how long the hold will last and whether you can expedite it by providing additional documentation.
Fees and tax withholding on AIG withdrawals
AIG charges different fees depending on the product. Annuities may have surrender charges if you withdraw within a set period — often five to ten years from purchase — ranging from 1% to 10% of the withdrawal amount. Life insurance policy loans typically charge interest but no upfront fee. Brokerage account transfers usually have no fee, though selling securities may incur trading costs if applicable.
Federal income tax withholding is automatic on most AIG withdrawals unless you are over 59½ and meet specific conditions. The withholding rate is typically 10% for annuities and 20% for certain distributions. You can request a different withholding rate or no withholding when you submit your withdrawal request, but you remain responsible for any taxes owed at tax time.
If you withdraw from a traditional or rollover IRA held at AIG, withholding rules are different. Mandatory withholding is 20% for most distributions, and you cannot opt out. If you roll the money into another retirement account within 60 days, you can recover the withheld amount when you file your tax return.
Frequently Asked Questions
How long does it take to get money from an AIG withdrawal?
Processing time depends on the product and method. Bank transfers to another account typically take three to five business days. Checks take five to seven business days for delivery. Annuity and life insurance withdrawals take five to ten business days to process, plus delivery time. Policy loans may take two to four weeks because AIG needs to set up repayment terms.
Will I owe taxes on my AIG withdrawal?
It depends on the product and your age. Withdrawals from annuities and life insurance cash value above your basis are taxed as income. If you are under 59½, the IRS may add a 10% early withdrawal penalty. Brokerage account withdrawals are not taxed, but selling securities at a gain may trigger capital gains tax. AIG will withhold federal income tax automatically unless you request otherwise.
Can I cancel a withdrawal request after I submit it online?
Yes, but only if the request is still in "pending" status. Once AIG begins processing or the money has been sent, you cannot cancel. Log into your account and look for a "cancel" or "recall" option next to the pending request. If you do not see one, contact AIG customer service immediately — they may be able to stop the transaction if it has not yet been released.
What if I forgot my AIG login password?
Click "Forgot Password" on the AIG login page and follow the reset instructions. AIG will send a link to your registered email address. If you do not have access to that email, call AIG customer service with your policy number and personal information to verify your identity and reset your password over the phone.
Can I withdraw money from my AIG account on weekends or holidays?
You can submit a withdrawal request anytime through the online portal, but AIG processes requests only during business hours on weekdays. A request submitted on Friday evening or over a weekend will not begin processing until the next business day. Processing time starts from when AIG receives and reviews your request, not from when you submitted it.