Key Features of Assurance Select 7
Assurance Select 7 is Great American's term life product aimed at adults aged 18‑65 who need a straightforward death benefit for a set period. It offers level premiums for the chosen term, a guaranteed renewable option after the term ends, and the ability to convert to a permanent policy without medical underwriting. The plan focuses on affordability and simplicity, making it a common choice for families, mortgage protection, and budget‑conscious consumers.
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Eligibility and Application Process
Applicants must be U.S. citizens or legal residents, meet the age limits, and pass a standard health questionnaire. The underwriting can be fully medical, simplified issue, or guaranteed issue, depending on the amount of coverage and the applicant's health profile. Online applications typically yield an instant quote, while a full medical exam may be required for higher face amounts.
Cost Structure and Premiums
Premiums are calculated based on age, gender, health status, and the chosen term length (10, 15, 20, or 30 years). Because the product is term‑only, there is no cash value accumulation, which keeps the cost lower than permanent policies. Discounts may apply for non‑smokers, bundled policies, or safe‑driving records.
Conversion and Renewal Options
At any point during the term, policyholders can convert Assurance Select 7 to a permanent whole‑life or universal‑life policy with Great American, preserving the original death benefit without new medical exams. After the term expires, the policy can be renewed for another term at the then‑current rates, though the premium will increase with age.
Comparing Assurance Select 7 to Similar Term Products
Below is a concise comparison of Assurance Select 7 with two competing term policies often considered by consumers.
| Attribute | Great American Assurance Select 7 | Competitor A (XYZ Term) | Competitor B (ABC Term) |
|---|---|---|---|
| Maximum Coverage | $500,000 | $1,000,000 | $750,000 |
| Term Lengths | 10‑30 years | 10‑20 years | 15‑30 years |
| Conversion | Yes, to permanent | No conversion | Yes, limited |
| Renewal | Guaranteed renewable | Not guaranteed | Renewable with surcharge |
| Typical Rate (30‑year, $250k) | $18/month | $22/month | $20/month |
When Assurance Select 7 Makes Sense
Consider this policy if you need a predictable death benefit for a specific financial obligation—such as a mortgage, college tuition, or income replacement—without the complexity of cash‑value features. It is also suitable for younger, healthier individuals who want the lowest possible premium for a set period.
Potential Drawbacks
The primary limitation is the lack of cash value, meaning the policy provides no savings component or borrowing ability. After the term ends, the renewal premium can rise sharply, potentially outpacing budget expectations. Additionally, the maximum face amount may be insufficient for high‑income earners requiring larger coverage.
How to Decide
Evaluate your financial obligations, the length of time you need coverage, and whether you anticipate converting to a permanent policy later. Use a needs‑analysis calculator to estimate the appropriate death benefit, then compare quoted premiums across multiple insurers, including the conversion and renewal terms.