AIG Term Life Insurance at Age 70: What You Need to Know

Eligibility and Basic Coverage for 70‑Year‑Olds

AIG offers term life policies that can be purchased by individuals who are 70 years old, provided they meet the company's underwriting guidelines. The policy typically covers a single term—often 10 or 20 years—during which the insured pays a fixed premium. If the insured dies within the term, the death benefit is paid to the designated beneficiary. If the term expires while the insured is alive, the policy ends unless it is converted or renewed.

Premium Structure and Cost Factors

Premiums for a 70‑year‑old are higher than for younger applicants because the mortality risk increases with age. AIG's pricing reflects factors such as health status, smoking history, family medical background, and the chosen coverage amount. Because the premium is fixed for the term, it provides predictability, but the initial cost may be substantial compared to term policies for younger ages.

Choosing the Right Term Length and Coverage Amount

Deciding between a 10‑year and a 20‑year term depends on financial goals. A 10‑year term may be suitable for covering short‑term obligations, such as paying off a mortgage or financing grandchildren's education. A 20‑year term offers longer protection, potentially covering long‑term medical expenses or estate planning needs. Coverage amounts should match the expected liabilities at the end of the chosen term; a common recommendation is to align the death benefit with the total projected costs.

Conversion Options and Policy Extensions

AIG allows policyholders to convert a term policy to a permanent life insurance product without a medical exam, usually within a specified conversion window (often the first few years of the term). This option can be valuable if the insured's health changes or if they want lifelong coverage. However, conversion typically comes with higher premiums and may reduce the death benefit relative to the original term amount.

Key Points to Verify Before Applying

• Check the exact term lengths available and their corresponding premium rates.
• Confirm whether a non‑smoker discount applies and how smoking status is verified.
• Understand the policy's renewal or conversion provisions and any associated costs.
• Ask about the process for updating beneficiaries and the impact on premiums.
• Review the medical underwriting requirements, including required health questionnaires and potential examinations.