Options for AIG's Select-a-Term Life Insurance

UPDATED: Feb 25, 2020

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In a previous post, I wrote about the release of AIG’s new term life insurance product, AIG Select-a-Term. I decided to revisit this topic today because the more I think about it, the more I realize the potential it has to help life insurance consumers.

For example, let’s say you have a mortgage with 16 years remaining on it. Until now, to fully protect the mortgage with term life insurance, you would have to purchase a 20-year term policy. You could then cancel the coverage after 16 years when your mortgage was presumably paid off. On the surface, this seems like a reasonable approach. However, when we consider the fact that you must pay premiums for 16 years on a policy that is priced for 20 years, we begin to realize that you will end up overpaying for the actual coverage you need, which is 16 years, not 20.

AIG Select-a-Term was designed to eliminate this type of scenario. The product allows you to ‘dial in’ the exact term of coverage for your needs, while at the same time, paying for exactly the term of coverage you need. Using our example above, let’s look at the advantage of purchasing a 16-year term life policy (example for a 45-year old male, Preferred rating class, $500,000 coverage amount):



16-Year Term

 20-Year Term

 Annual Premium



 Total Policy Cost (16 Years)


 $13,120 ‘

 Additional Cost



‘ Assumes 20-year term life policy is canceled after the mortgage is fully paid (16 years).

Our example policy owner would pay an additional $2,160 by purchasing a 20-year term life policy and canceling it after 16 years. This clearly demonstrates the tremendous opportunity this new product provides consumers.

Please contact us for help customizing a term life insurance policy to your needs.

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