The Basics of Term Life Insurance

Term Length - Clock
TERM LENGTH Covers the Policyholder for a Specific Amount of Time
Term Length Options - Calendar
10 to 30 YEARS Term Lengths Typically Range from
Affordable Option - Piggy Bank
MOST AFFORDABLE Fixed Premium for the Entire Term
Customer Reviews

What is Term Life Insurance?

A term life insurance policy covers the policyholder for a specific amount of time, which is known as the term. The term lengths vary according to what the individual chooses. Terms typically range from 10 to 30 years and increase in 5-year increments, providing level term life insurance. Among the most popular life insurance products available, term life insurance policies tend to be more affordable. They typically provide an amount of coverage for much less than permanent types of life insurance. Speak to an agent toady about a term life insurance policy that's right for your situation, and get your personalized term life insurance quote.

How Does Term Life Insurance Work?

Depending on the type of policy, term life insurance can offer fixed premiums for the entire term or life insurance on level terms. The death benefits can be fixed as well. Because it's affordable and the payments can stay the same, term life insurance policies are popular with young people just starting out, families and people who want protection for a specific period of time. (For example, someone who wants to protect an income until retirement or while paying off a home mortgage.)

Term life insurance doesn't accrue cash value like several other types of life insurance, but with many term policies, beneficiaries do receive the full face amount. For example, if a policy's face amount is $100,000, the beneficiary receives the full amount, pure and simple. Even better, the benefits paid by on a term life insurance policy are tax free, according to current tax laws.

There are several types of term life insurance policies available through AIG Direct, including level, renewable and convertible. Get your free, no obligation, term life insurance quote today.

Level Term Life Insurance

Set it and forget it!
Premium Payment is Fixed
Premium Payment
Benefit Amount is Fixed
Benefit Amount
Term Range is 10 - 30 Years
The Term Range
10 - 30 Years

One of the most popular types of term life insurance, level term life insurance (or term level life insurance) available through AIG Direct, offers life insurance on level terms or a fixed premium payment for the duration of the term. It also has a fixed benefit amount and the terms range from 10 to 30 years. A longer term could mean a higher monthly premium, because the carrier typically averages the cost of insuring someone who is younger with the cost of insuring someone who is older (when premiums are more expensive). Because level term life insurance has a "set it and forget it" fixed payment, it can be easier for people to budget. Having a fixed benefit that pays the face amount also holds appeal as straightforward, "pure" insurance.

Renewable Term Life Insurance

Shorter Term
Premium Payment is Based on Current Age
Premium Payment
Based on current age
Benefit Amount is Based on Current Age
Benefit Amount
Based on current age
Term Range is 1 - 3 Years
The Term Range
1 - 5 Years

A renewable term life policy available through AIG Direct typically runs for a shorter term, but has the option to renew it. The terms often run from 5 to 30 years. With each renewal, the premium is based on the person's current age, which can result in a higher premium. Sometimes, the renewal requires proof of insurability, so the person must continually demonstrate good health in order to renew. There are renewable policies that do not require proof of insurability, but the renewal rate will still be based on the current age. People tend not to purchase renewable term life for long periods such as 30 years, because the rising cost of the premium can make it impractical.

Convertible Term Life Insurance

A valuable benefit
Premium Payment is Lower and Flexible
Premium Payment
Lower & Flexible
Benefit Amount is a Valuable Benefit
Benefit Amount
A Valuable Benefit
Term Range is 10 - 30 Years
The Term Range
10 - 30 Years

Flexible and affordable, convertible term life insurance available through AIG Direct can be "a valuable benefit" for some. This type of insurance allows people to convert their term life insurance into a permanent life policy, without a medical exam or the need to prove insurability. The premiums can be lower than a standard term life policy, so it often appeals to young people and families on a budget. As time goes on, policyholders may need more coverage, or they might decide a policy with a cash value makes more sense. Having the ability to convert the policy offers nice flexibility as needs or financial goals change. There are two things to be mindful of with a convertible policy. First, when you convert to a permanent life insurance policy, the premium increases. Second, there is typically a window during which you can convert. The ability to convert does not run for the entire term, so it's wise to watch for the deadline.

How to Apply for Term Life Insurance

You can get started by requesting a term life insuarnce quote. A nationally licensed agents will help you answer your questions and find the right term life insurance policy for you and your family.

Reviews from Customers who have Bought Term Life Insurance through AIG Direct

We think what our satisfied customers say about us in their life insurance reviews, says more than any advertising campaign ever could. A life insurance rating from customers is a great way to see what people really think about a company. The reviews you see below are from customers who purchased life insurance policies through AIG Direct.

After a customer buys life insurance from us we ask them for a review. We post all reviews unless their content is obscene, inflammatory or not factually accurate. We ask customers to rate our services and then produce an overall rating as shown below. We encourage you to read our life insurance reviews and see just how happy our customers are.