AIG has been a “go to” carrier for term insurance for years, and 2015 is no exception. This week brought with it a significant reduction in Select-a-Term rates across 70% of the 2464 cells they benchmarked. For more information and transition rules please see below.

New, Lower Rates with AG Select-a-Term

2015 has already seen any number of insurance companies changing term rates in an effort to capture market share. AIG is different in one important way: This reprice is focused on maintaining their industry leading competitive position:

  • Over 90% of Select-a-Term premium rates rank in the top three within the industry and nearly 65% rank number one.
  • Ranking percentages are based on 15, 20, 25, 30 year term duration, male and female quinquennial ages 20-75, $250K, $500K and $1.5M face amounts in non-tobacco underwriting classes, against 14 leading competitors. 960 cells sampled on 5/31/2015

These rates are approved in all states outside New York effective June 8th, 2015.

Transition Rules

  • Applications received prior to June 8, 2015 will automatically receive old premium rates.
  • Applications received June 8, 2015 but prior to July 20, 2015 will automatically receive new rates unless old premium rates are specifically requested.
  • Applications received July 20, 2015 or later will automatically receive the new rates.
  • Reissue requests to the new rates will not be honored.
  • New applications submitted to replace existing inforce coverage with the new rates will not be honored within 90 days of the existing coverage going inforce.

Additional Information

Please see the following from AIG: