AIG Term Life Insurance for Smokers: What to Expect

Coverage Basics

AIG offers term life insurance designed to provide a death benefit for a fixed period, typically 10, 20, or 30 years. The policy pays the designated beneficiary if the insured dies during that term, regardless of cause, as long as the policy is active and premiums are paid.

How Smoking Affects Your Quote

Smoking increases mortality risk, so insurers use higher rates for smokers. AIG adjusts the premium by applying a smoker surcharge that reflects the additional risk. The surcharge varies by age and the number of cigarettes smoked per day; for example, a 35‑year‑old who smokes ten cigarettes a day may face a surcharge of 70–120% over the non‑smoker rate, but the exact percentage is set by AIG's underwriting guidelines.

Underwriting Process for Smokers

When applying, you'll complete a health questionnaire that asks about smoking habits, medical history, and lifestyle. AIG may request a medical exam, especially for higher coverage amounts or older applicants. The insurer evaluates the information against its risk tables and assigns a rate accordingly.

Policy Options for Smokers

Smokers can choose:

• Standard Term: Fixed premium for the term length.
• Convertible Term: Option to convert to a permanent policy without a new exam, usually within 5–10 years.
• Renewable Term: Policy can be renewed at the end of the term, often with increased rates.

Reducing Your Premium

Quitting smoking can lower the surcharge. AIG typically offers a 12‑month "Quit and Save" program where you can reduce the smoker rate after a year of documented cessation. Proof may include doctor's notes, a smoking cessation program certificate, or a documented quit date.

Key Points to Check

• Ask the agent how the smoker surcharge is calculated and whether it can be reduced.
• Verify the policy's term length and whether it offers a convertible feature.
• Confirm the renewal policy's rate structure and the cost if you decide to renew after the term ends.
• Review the underwriting guidelines for medical exam requirements.

Final Thoughts

While smoking raises the cost of AIG term life insurance, the policy remains a viable option for those needing coverage. By understanding the surcharge, exploring convertible or renewable terms, and considering a quit program, you can manage the cost while securing financial protection for your loved ones.