The flagship product, Select-a-Term from
AIG, is adding cheaper options, longer term durations and a credit conversion option as part of a rejuvenated line-up.
The new 35-year term is Select-a-term’s eighteenth interval option and the lower band policies it unveiled Tuesday range from face values of $50,000 to $100,000.
The 35-year term comes with guaranteed level term coverage, as do the 10-year and 15- through 30-year terms.
Non-medical underwriting is available to people less than 60 years old for the lower band options, while the coverage for the 35-year term is available to clients up to 95-years-old in some cases, AIG said.
“With its new,market-leading rates and enhanced flexibility, Select-a-Term is designed to offer clients undeniable value and utility,” said Rod Rishel, chief executive officer of life, health and disability, AIG Consumer Insurance. “In a time when many consumers and businesses still lack the protection of life insurance, this product offers the opportunity for them to gain the amount of coverage needed at affordable rates.”
Premiums in New York now match Select-a-Term in other states and though AIG’s flagship product’s premium rankings in the Empire State vary from others in the union, Select-a-Term in New York has a different return on investment.
In the US, AIG says nearly 85% of premium rates for Select-a-Term are ranked in the top three popular durations and risk classes.
Though rate revisions fluctuate throughout America, premiums have gone down on policies worth $500,000 or more in 15-, 20-, 25- and 30-year durations.
Select-a-Term is convertible to permanent life insurance at the end of the level-premium period or when the client turns 70-years-old, whatever comes first.
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