Term life insurance is among the most widely used types of life insurance coverage in the U.S. There are plenty of good reasons for its popularity. Term life insurance is generally more affordable than permanent life insurance, and it can come with the ability to customize a strategy according to one’s needs, making it highly appealing to some individuals.
Term life insurance is a type of policy that offers temporary coverage that can range from ten years to a few decades. At AIG Life Insurers, we help individuals, families and organizations find the term life insurance coverage that fits their budget, timeframe and goals. Here’s how we do it.
Depending on your age, our Select-a-Term option allows you to choose a coverage length from 10 years to 35 years. While most companies offer term coverage in five-year increments, the AIG Select-a-Term option allows for one-year increments between 15 and 30 years, along with options for 10 and 35 years, for a total of 18 different term durations to choose from.
This kind of flexibility gives you the opportunity to customize your life insurance coverage based upon the needs of your beneficiaries, your earning potential and responsibilities.
Determine coverage values
After deciding on the length of your policy, the next thing to do is determine how much coverage you need. Whether it’s a smaller amount intended to help cover some of your final expenses or $500,000 to help send a child to college and cover a mortgage, we make it easy to obtain just the right amount of life insurance for your needs. Use our handy life insurance calculator to determine a coverage amount that works for you and your family.
Your needs may change over time, so your life insurance plan should be able to change as well. Our term life insurance policies come with the ability to convert into permanent coverage up until the end of the level-premium period (or age 70 of the insured individual, whichever occurs first). No additional underwriting is needed, and we may apply a portion of your term policy premium to your new permanent policy.
It’s just one more way we help customers tailor a life insurance plan specific to their needs.
Types of term life insurance
Policy lengths and coverage amounts are only the beginning when it comes to being able to customize your life insurance policy. AIG Life Insurers offer different types of term life policies, each with a different consumer in mind.
- Level term life insurance
Level term life insurance is one of the most popular types of term life insurance. These policies typically offer fixed premium rates that will not increase over time. These policies provide the cost certainty and predictability that can allow for easier long-term saving and budgeting.
- Renewable term life insurance
A renewable term life insurance policy expires and renews again on an annual basis. This structure allows you to pay for coverage without any long-term commitments. It also can be helpful if you anticipate only needing coverage for a short period of time and want to have some more flexibility.
- Convertible term life insurance
Outlive your need for term life insurance? That’s a good problem to have. A convertible term life policy includes the option to convert the policy to a permanent type of coverage, giving you more flexibility when it comes to your life insurance coverage length.
Using term life insurance
Beneficiaries can use a term life insurance policy payout to replace the insured’s income, help pay a mortgage, help pad a college fund, cover some of the insured’s final expenses and more. There is no shortage of ways customers can use term life insurance. Just a few examples include:
- The homeowner
Due to the ability to choose a specific coverage length, term life insurance can help add some security for your beneficiaries in case you pass away before your mortgage is fully paid. For example, if you have 23 years remaining on your mortgage, a 23-year term life policy with a coverage amount that’s equal to your remaining mortgage balance can help protect your home throughout the life of the mortgage, helping to ensure your family could continue living in the home if you were to pass away.
- The sole household income provider
A life insurance payout can serve as income replacement for the insured, and a term policy can be customized to mirror the number of years of income to be replaced. If you anticipate working until age 65, setting up a term life insurance policy with the appropriate length of coverage can help protect your beneficiaries who depend on your income.
- The stay-at-home spouse
Stay-at-home parents and spouses often provide household services – be it cooking, cleaning, childcare or more – that can all carry a monetary value that would need to be replaced if that person passes away. A term life insurance policy payout can help pay for some of these household necessities.
- The college tuition saver
If you have children you wish to send to college, but you pass away before building up a sufficient college fund, it could be difficult for them to navigate those costs alone. Term life insurance death benefit proceeds can serve as a backup plan for college tuition and provide a way for your children to further their education, even in your absence.
- The retiree
An older adult may no longer have life insurance through an employer, but they may still wish to provide some financial protection to their loved ones to help cover funeral expenses, end-of-life care or estate taxes. A modest term life insurance policy can help cover those costs.
Applying for term life insurance
Applying for term life insurance is easy with AIG Life Insurers. You can get a free quote, and our life insurance agents are on hand ready to answer your questions about life insurance, help you select the type of policy that’s best for you and find you a rate that works within your budget.
Give us a call today at 855-840-23359 to get started.
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), 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. All rights reserved.