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What is renewable term life insurance?


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Unlike permanent life insurance, a term life insurance policy allows you to acquire coverage for a select period of time, typically somewhere between 10 and 30 years.

Now imagine if you could reduce that policy length even more. That’s exactly what annual renewable term life insurance can help you do.

Renewable term life insurance explained

An annual renewable term life insurance policy is one that expires every year with the option to renew again for another year. You’ll be given a period of “insurability,” which is the number of years for which you’ll be able to renew the policy annually without the need to reapply or undergo additional medical underwriting. Many states have laws that determine the maximum age at which a term life insurance policy can be renewed.

Although you probably won’t be subject to any medical exams with each renewal, your premiums may increase when you renew, as you’ll be one year older each time you do. However, the death benefit coverage amount tied to the policy will remain the same.

The benefits of renewable life insurance

You may not need life insurance forever, and you may not even need it for very long. Below are a few examples of when and why someone might benefit from renewable term life insurance. 

  • You have a child you’re putting through college and you wish to secure some life insurance coverage until they graduate, in order to help protect their tuition payments.
  • You took out a loan to start a business. You might anticipate paying off the loan in a few years, but you may want to protect your family from unpaid debt if you were to die before being able to pay off the loan.
  • You’re between jobs and may want to help protect your loved ones financially until you’re able to secure life insurance again through a new employer.
  • You are getting a divorce and might wish to secure a backup financial plan for your child support payments in the case that you pass away before your kids reach the age of 18.
  • Your old term life insurance policy expired or lapsed, but you still have some short-term debt such as a mortgage that you might want to protect until it’s paid off.

Term Life Insurance at AIG Life Insurers

AIG Life Insurers can help you obtain a term life insurance policy suited to your budget needs. Call 1-800-390-3019 to speak with an AIG-appointed life insurance agent today and take the first step toward helping to protect the future of your loved ones.


Agency services provided by AIG Direct Insurance Services, Inc. ("AIG Direct"), CA license # 0B57619 and AR license # 0100105378, a subsidiary of American General Life Insurance Company ("AGL"), Houston, TX and an affiliate of The United States Life Insurance Company in the City of New York ("US Life"), New York, NY, all members of American International Group ("AIG").
Policies issued by: American General Life Insurance Company (AGL), Houston, TX. Policy Form Numbers ICC16-16901, 16901, ICC16-16900 and 16900 except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Numbers 16901N and 16900N. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features including rates may vary by state. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. © 2018 AIG. All rights reserved.

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