According to one study, 8 in 10 Americans overestimate the true cost of life insurance.¹ The truth is, term life insurance coverage can be more aﬀordable than you might think. Below are seven attractive term life insurance features. AIG Life Insurers can help you design a cost-eﬀective plan to help protect your loved ones.
1. Term life insurance is not permanent
Most of the time, term life insurance rates are lower than permanent life insurance. Many people may outlive the length of their term life insurance policy, which means they may not require a payout of benefits. With a permanent life insurance policy, you often have to pay higher premiums because the policy is intended to provide coverage well beyond the typical term insurance policy period and often for the lifetime of the insured.
If you’re looking for aﬀordable life insurance, a term policy can be a good place to start.
2. Buying term life insurance can be less expensive when you’re young and healthy
Term life insurance rates are often dictated largely by age and health. If you’re young and reasonably healthy (and not a smoker), you may be able to be approved for a high amount of term life insurance coverage for lower monthly premiums than you might with a permanent life insurance policy.
3. Term life insurance policies can come with ﬁxed premiums
Some term life insurance policies oﬀer level premiums, which means that your payment amount will not go up over the coverage period provided by the policy. A fixed premium can help make expense budgeting easier for an individual or family.
4. Term policy premiums can also be adjustable
Just as premiums can remain steady over the life of a policy, some can start out small and gradually increase over time. Some individuals starting their career find this beneficial, because as their income grows over time they are able to aﬀord a larger premium payment.
5. Some policies may include premiums that decrease
Some term life insurance policies can also be kept aﬀordable by having premiums that decrease over time. With this type of policy, you can likely get the bulk of the cost out of the way early – during the years when your income is higher – and then enjoy decreasing rates as time goes on.
6. Some insurance policies include a return of premium
The premiums on certain term life insurance policies can be refunded to you if you outlive the length of the coverage. This is called “return of premium term life insurance,” and while the rates for this type of policy are typically higher than those of more basic term policies, the ability to get your money back in the end can help make this option more aﬀordable in the long run.
7. Annual policy renewal may be an option
Annual renewable term life insurance is a type of short-term coverage that can be renewed every year, essentially similar to a series of one-year contracts. The premiums will generally increase slightly with each renewal, but these policies help allow consumers analyze their needs every year and act accordingly. An annual renewable policy term life insurance policy can be one way to get aﬀordable coverage for a short-term need.
Affordable term life insurance at AIG
Call 1-800-390-3019 to speak with an AIG-appointed life insurance agent to explore our term life insurance options, and learn how we can help provide you with protection at an aﬀordable cost.
1 2017 Insurance Barometer Study, Life Happens and LIMRA
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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