AIG’s term life insurance has a minimum face value of $50,000, but you can purchase up to $10 million in coverage if approved.
Term policies have level premiums throughout the life of the policy. You can renew your policy annually after the initial term but will pay more after each renewal. A policy can be renewed until you turn 95.
Because AIG term insurance has flexible terms and amounts, you can ladder life insurance policies to meet financial situations throughout your life. Laddering allows you to determine the exact periods you need more or less insurance and combine more than one policy to fit that situation.
Term policies are also convertible until you reach 70. You can convert an existing policy to a whole or universal life insurance policy if you’re faced with a situation or illness that makes it difficult to find affordable permanent coverage. AIG has no requirement to demonstrate insurability before converting to a permanent life insurance policy.
AIG also offers a return of premium variation on its Select-a-Term policy. A return of premium policy is limited to those under 55 with a customizable length that starts at 20 years and a minimum policy amount of $100,000. However, the cost of a return of premium policy is typically about two to three times the cost of a standard policy. With this option, you can surrender your policy and receive your full amount paid in premiums, convert to a whole life policy or buy paid-up life insurance up to age 95.
AIG term life insurance riders
AIG’s term life insurance policies can be customized with riders which enhance coverage in certain situations. The following riders are available for AIG’s term policies.
- Accidental Death Benefit. This functions like an accidental death insurance policy, providing up to $250,000 in additional coverage or the term policy’s face value if it’s less than $250,000.
- Child rider. This lets you cover all your children with a single rider. You can purchase between $500 and $25,000 of coverage which remains in force until your child turns 25 or you turn 65.
- Terminal Illness. If you’re diagnosed with a terminal illness and have less than two years to live, you can receive a portion of your death benefit while still alive. AIG offers this additional coverage free with term life insurance policies.
- Waiver of Premium rider. This rider waives premiums if a policyholder becomes disabled for at least six months. Premiums are waived as long as the total disability persists unless you become totally disabled after age 60, in which case the coverage extends for up to one year or until you turn 65.
Permanent Life Insurance
Whole Life Insurance is considered a form of permanent life insurance that provides coverage for the policyholder’s entire life as long as premiums are kept up to date. Whole life policies also have a cash value component that term policies do not, meaning you can borrow against the premiums you’ve paid into the policy in most cases.
AIG Life Insurance offers the following types of whole life and universal life policies.
AIG Guaranteed Issue Whole Life insurance. If you’re between 50 and 85, you can get up to $25,000 in coverage that covers expenses associated with the policyholder’s death. AIG pays a reduced death benefit during the first two years of coverage unless you die in an accident. This is also referred to as burial insurance or final expense insurance.
Burial insurance policies also come with chronic illness and terminal illness riders at no cost, which provides benefits while you’re still alive if you become severely ill.
Value+ Protector and the Max Accumulator+ Indexed Universal Life insurance policies. Both offer permanent coverage, and a portion of the premiums fund the policy’s cash value. This cash value can either be held in a fixed interest rate account or invested in index accounts similar to mutual funds. AIG universal life policies are available for people between 18 and 80, with a minimum face value of $50,000.
Accumulator+ indexed universal life policy. This universal life policy lets you purchase coverage with no exam if you’re 50 years old and your policy’s face value is below $500,000. The policy’s cash value can be accessed via withdrawals or policy loans, similar to most universal life policies, but you may also have the option to purchase paid-up additions.
AIG’s guaranteed universal policies can also be customized with the accelerated access solution, enhanced surrender value, and lifestyle income solution riders.
AG Platinum Choice VUL. This variable universal life insurance policy is similar to the indexed universal policies but offers more cash value investment options. Variable policies are available up to age 80 and require a $100,000 minimum face value.
The company also offers accidental death and dismemberment (AD&D) insurance which requires no medical exam, with policies up to $500,000 in coverage for people 18 to 80.
