Gen Life Insurance: Your Guide To A Secure Future

American General Term Life Insurance is a leading provider of life insurance policies, catering to the changing needs of its customers. The company offers a convenient online customer portal, eService, and knowledgeable customer service representatives to assist clients at any time. American General recognizes that life insurance requirements evolve with time, and thus provides flexible options to ensure individuals have the right amount of coverage.

Permanent life insurance

There are several types of permanent life insurance policies available, each with its own unique features and benefits. Here is an overview of some common types:

Whole Life Insurance

Whole life insurance is a common type of permanent life insurance that provides coverage for the policyholder's entire life. It is characterized by fixed premiums that do not change over time, regardless of the policyholder's age or health status. Whole life insurance policies also include a cash value component that accumulates slowly over time. Policyholders can choose from different payment schedules, such as paying premiums up to a certain age or for a fixed number of years. While beneficiaries typically receive the face amount of the policy upon the policyholder's death, they do not receive the accumulated cash value. Policyholders can withdraw or borrow against the cash value during their lifetime, but if the loan is not repaid, the insurer will deduct the loan amount from the death benefit.

Universal Life Insurance

Universal life insurance offers flexibility by allowing policyholders to adjust their premiums and death benefit amounts within certain limits. This type of policy also includes a cash value component, but it differs from whole life insurance in that premiums can be scaled down or skipped if needed. However, adjusting premiums may negatively impact the cash value and potentially lead to higher premiums over time. Universal life insurance may be a good option for those who want flexibility in their payments and are working with a financial professional who can guide their investment decisions.

Variable Universal Life Insurance

Variable universal life insurance combines the features of variable and universal life insurance. It offers flexible premiums and a savings component, but the growth of the savings is influenced by various investment methods chosen by the policyholder. This type of policy usually has minimum and maximum growth rates, and while it offers more variables and potential rewards, it also carries more risk.

Indexed Universal Life Insurance

Indexed universal life insurance is another variation of universal life insurance. It has the same basic components as permanent life insurance but with a unique approach to the cash value component. The cash value in this type of policy grows based on the performance of a chosen stock market index. If the selected index performs well, the account will grow accordingly. In some cases, if the index is not performing well, the insurance company may allow the account to grow at a minimum rate.

The cost of permanent life insurance can vary significantly depending on factors such as age, medical history, family size, and location. It is generally more expensive than term life insurance due to its lifelong coverage and investment opportunities. When considering permanent life insurance, it is important to weigh the pros and cons, understand the different types of policies available, and seek guidance from a financial advisor to make an informed decision.

Final expense life insurance

Final expense insurance is one of the most affordable types of life insurance, with rates starting at $63 per month for coverage ranging from $5,000 to $40,000. The application process is generally quick and easy, and coverage can be issued in days, or even on the same day. This type of insurance is particularly popular among seniors due to its affordable price, smaller benefit amounts, and focus on covering funeral costs.

Most final expense plans share common features, including:

• Whole life insurance with no expiration as long as premiums are paid
• The ability to build cash value over time, allowing the insured to take out a policy loan
• Fixed premiums that remain unchanged
• Simplified issue, typically requiring no medical exam, only health questions on the application
• Easy application and fast approval process

When considering final expense insurance, it is important to review your coverage regularly, as funeral costs are constantly rising. Additionally, it is crucial to be honest when answering health-related questions on the application. While most final expense policies do not require a medical exam, insurance companies may order years' worth of medical records upon the insured's death during the policy's contestability period. Any discrepancies between the application answers and medical records may result in a denied claim.

Final expense insurance provides peace of mind, ensuring that your loved ones will not be burdened with unexpected expenses during their time of grief.

Term insurance

Term life insurance is a type of life insurance policy that has a specified end date, such as 20 years from the start date. It is a way to protect your loved ones when you die. The death benefit is the amount of money paid to beneficiaries after the insured dies and will only be paid out if the insured dies during the term. This can be issued in a variety of ways, such as a lump-sum payment or as annuities.

The most common type of term policy is a level term policy, which means that the value of the death benefit and the price of the premiums remain the same for the entire duration of the policy. The benefit can also be decreasing, meaning it shrinks over time, typically in one-year increments.

Some term policies can also be converted to permanent life insurance policies, such as whole or universal policies, without a medical exam. However, once converted, those permanent life policies are more expensive.

Renewability is another potential feature of term coverage, which means that some insurance carriers may allow you to keep the policy in force past the initial time period you selected without undergoing additional underwriting or medical exam processes. However, your premiums may increase each time the policy is renewed.

Term life insurance is usually the least costly life insurance available because it offers a death benefit for a restricted time and doesn’t have a cash value component like permanent insurance. For example, a healthy, non-smoking 30-year-old man could get a 30-year term life insurance policy with a $250,000 death benefit for an average of $18 per month as of October 2024. At age 50, the premium would rise to $67 a month.

Term life insurance is attractive to young people with children. Parents can obtain substantial coverage for a low cost, and if the insured dies while the policy is in effect, the family can rely on the death benefit to replace lost income. These policies are also well-suited for people with growing families. They can maintain the coverage needed until their children reach adulthood and become self-sufficient.

Policy management

Online Policy Management:

American General Term Life offers an online customer portal called eService, which provides customers with 24/7 access to manage their policies. Through the eService portal, you can conveniently:

• Pay Premiums: Access the online payment portal to make premium payments securely and on time.
• Update Contact Information: If you've recently moved or changed phone numbers, you can update your mailing address and contact details easily.
• View Policy Information: Their new ePolicy tool allows you to view and understand the details of your policy clearly.
• Change Beneficiaries: You can modify the beneficiaries designated for your life insurance policy as needed.
• Access Forms: Commonly used forms for updating your life insurance policy are readily available for your convenience.

Customer Support:

For more complex inquiries or assistance, American General's knowledgeable customer support team is available via phone at 1-800-888-2452. Their representatives can provide guidance on various topics, including finding the right amount of coverage, answering frequently asked questions, and helping with any issues you may encounter.

Remember, as your life circumstances change, your life insurance needs may also evolve. Regularly reviewing and managing your policy ensures that you have the appropriate coverage amount and term length to suit your current situation.

Coverage needs

Life insurance is a long-term agreement between you and an insurance company, where your beneficiaries will be provided for financially after you are gone. This can be a set time period or a lifetime policy, with different types of features, some of which allow you to access money while you are still living.

When determining your coverage needs, it is important to consider the future expenses of your beneficiaries. This could include everyday living expenses, such as groceries and utility bills, as well as larger expenses such as a mortgage, education costs, or retirement funding. It is also important to consider any existing financial resources your beneficiaries may have access to, such as their own income or investments, to ensure that the coverage amount is sufficient without being excessive.

Additionally, the length of coverage required is an important consideration. For example, if you have young children, you may want a policy that covers them until they reach adulthood and can support themselves financially. On the other hand, if you are nearing retirement, a shorter-term policy may be more suitable to cover any remaining debts and ensure your partner's financial security.

Life insurance coverage needs to be tailored to the individual, and it is always recommended to speak with a financial advisor to ensure your specific needs are met. They can help you assess your current financial situation, future goals, and potential risks to ensure that you have adequate coverage in place.

Frequently asked questions