One of the main attractions to term life insurance is that it’s typically more aﬀordable for most people, especially when compared to permanent types of policies.
It’s important to understand how term life insurance rates work. How are your premium rates determined? What are the financing options? Most importantly, how can you find the value that’s right for you?
Determining term life insurance rates
Term life insurance rates are diﬀerent for everyone as there are a number of things that can factor into the final cost.
Length of coverage and amount purchased
First and foremost to consider is the length and amount of coverage you wish to buy. Generally speaking, a 30-year term life policy will cost more than a 10-year term life insurance policy with all other things being equal. A policy containing $500,000 of coverage will likely cost a bit more than one valued at only $200,000.
Life insurance premiums can be structured in a few diﬀerent ways, and each may have an eﬀect on the overall rate. For example, decreasing term life insurance involves a death benefit that gradually decreases over time. Level premium policies include a fixed rate that stays the same throughout the life of the policy. Return of premium life insurance returns the premiums you paid if you outlive the duration of the policy.
All of these financing options can have an eﬀect on the rate of the policy.
Beyond those basics, there are a few other things than aﬀect the rate of a term life insurance policy.
Your term life insurance rates can be aﬀected by any riders you wish to include.
One way to ensure you get the most competitive rates in your area is to work with an AIG- appointed life insurance agent who can help you find a policy that fits your needs.
Contact us today at 1-866-971-4232 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 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.