Term life insurance policies offer insurance protection for a specified term or period of time – typically, one, five, 10, 15, 20 or 30 years, or until a specific age (such as 65). Premiums may increase each year (annually renewable term) or remain level for a set period (level term), and the insurance is generally less expensive than permanent (cash value) life insurance.
- AG Select-a-Term® - an alternative to the usual term periods. Select-aTerm provides coverage for 10-year or 15- through 30-year periods
- AG ROP Select-a-Term® - same great alternative terms AND, if you outlive the policy term, get your money back when the term is up.1
The policy may contain a provision permitting it to be renewed following the end of the level-premium period, although the premium rate probably will be higher. Some term life insurance policies include an option to convert to a permanent life insurance policy.
Traditional term life insurance provides a death benefit only; the policies do not offer an opportunity to build cash values. A product concept known as "return of premium term" returns at the end of the level-premium period the amount of the cumulative premiums paid, if the policy is inforce, and in some cases the contract builds cash value. This is an alternative to traditional term life and permanent insurance products.
1 AG ROP Select-a-Term accumulates a cash value that starts no later than the fifth policy year. At the end of the level premium period, the cash value of the in-force policy equals the total of cumulative premiums paid, less any charges for substandard ratings and riders. If the client surrenders the policy, this amount is paid out, minus any outstanding loan balance. The cash surrender value payment does not take into account the time value of money. Alternatively, the same amount may be rolled into a permanent plan of insurance should the insured be eligible for and choose to exercise the conversion option. Coverage may also be continued beyond the level premium period by payment of increasing annual premiums, and the policy will continue to build cash value until the policy anniversary nearest the insured's 95th birthday when the cash value will equal the face amount of the policy. The cash value, minus any outstanding loan balance, will then be distributed as the endowment benefit if the policy is inforce and the insured is then living. The cash value and endowment benefit are subject to all terms and conditions detailed in the policy.
Policies issued by:
American General Life Insurance Company
2727-A Allen Parkway, Houston, TX 77019
AG Select-a-Term Policy Form Number 07007
AG ROP Select-a-Term Policy Form Number 10001
70 Pine Street, New York, NY 10072
AG Select-a-Term Policy Form Number 09007N
AG ROP Select-a-Term Policy Form Number 10001N
The underwriting risks, financial obligations and support functions associated with the products issued by American General Life Insurance Company (American General Life) and The United States Life Insurance Company in the City of New York (United States Life) are the issuing insurer's responsibility. American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including American General Life and United States Life. United States Life is authorized to conduct insurance business in the state of New York. Policies and riders not available in all states.
