Ameriprise Term Life Insurance: Is It Worth The Cost?

Life insurance is an important financial product that can provide peace of mind and security for individuals and their loved ones. When it comes to term life insurance, Ameriprise offers policies with a fixed premium for a set period, usually ranging from 10 to 30 years. This type of insurance can be a cost-effective way to secure financial protection, as premiums tend to be lower compared to permanent life insurance. However, it's important to note that term life insurance doesn't build cash value, and once the policy expires, the death benefit ceases to exist. Ameriprise's term life insurance products are provided through RiverSource Life Insurance Company, and the company has received recognition for its customer service. In addition to term life insurance, Ameriprise also offers permanent life insurance options, providing lifelong coverage with potential cash value growth and flexible premium payments.

Ameriprise term life insurance pros and cons

Ameriprise offers term life insurance through its RiverSource brand, providing coverage for a set period, usually 10, 15, 20, or 30 years. This type of insurance is often chosen by young families or those who need coverage for a specific time, such as while paying off debt. Here are some pros and cons to help you decide if Ameriprise term life insurance is a good fit for you.

Pros:

• Local agents are available to help you choose the right product for your needs.
• Policies can be managed digitally through the Ameriprise app or online portal.
• Offers numerous other financial products, including annuities, IRAs, and mutual funds.
• A+ (Superior) financial stability rating from AM Best.
• Low complaint index score of 0.30 from the National Association of Insurance Commissioners (NAIC).
• J.D. Power recognized Ameriprise for providing an outstanding customer service experience.
• Term life insurance provides protection at a low cost.
• You can choose the duration or specific term of coverage.
• Typically offers lower monthly premiums than permanent life insurance.

Cons:

• Not all life insurance products and offerings are advertised online.
• No J.D. Power customer satisfaction rating.
• Once your policy expires, so does the death benefit.
• Term policies do not come with a cash value account.
• Term policies tend to get more expensive as you age, so they may not be a good long-term option.

Ameriprise term life insurance vs. permanent life insurance

Ameriprise offers both term and permanent life insurance policies. Term life insurance provides protection at a low cost, but does not have cash value. It covers only a set period and is generally much cheaper than permanent policies. Ameriprise offers 10-, 15-, 20- or 30-year terms. Term life insurance is a good option for those who want to secure financial protection for their loved ones at a low cost.

On the other hand, permanent life insurance provides lifelong coverage and the opportunity for cash value growth. It often requires higher initial premium levels than term life insurance but provides coverage until death and access to flexible features and benefits. Permanent life insurance is a good option for those seeking long-term financial security and the potential to borrow from their policy.

Term Life Insurance

• You can choose the duration of coverage.
• Once your policy expires, the death benefit expires as well.
• It typically offers lower monthly premiums than permanent life insurance.
• If your policy includes a convertibility clause, you can convert your term policy to a permanent policy within a specified time period without additional medical underwriting.
• Once the policy expires, if you want to renew coverage, you will need to convert to an individual permanent policy, continue to pay annual renewable premium rates, or undergo underwriting for a new term policy.

Permanent Life Insurance

• Provides lifetime financial protection.
• Initial premiums can be more expensive than term life insurance.
• Your policy has the potential to grow cash value, which accrues interest on a tax-deferred basis over time.
• The policy can take 10+ years to build enough cash value to borrow from.
• You can take withdrawals or borrow from your cash value income tax-free to meet financial needs.
• Accessing policy cash value through loans and surrenders may cause a permanent reduction in policy cash values and the death benefit.

Ameriprise term life insurance customer reviews

Ameriprise offers both term and permanent life insurance policies through RiverSource Life Insurance Company. The company has a range of term life insurance options, including 10-, 15-, 20- or 30-year terms. Term life insurance provides protection at a low cost but does not have cash value.

Customer reviews of Ameriprise's term life insurance products are mixed. While some customers have expressed frustration with policy management and customer service, particularly regarding issues like policy cancellation and offshore support, others have shared positive experiences, especially with RiverSource's long-term care policies. They have praised the efficient claims process and helpful customer service.

In terms of customer satisfaction scores, Ameriprise and RiverSource were not rated in the 2023 J.D. Power U.S. Individual Life Insurance Study. However, RiverSource has a 2023 NAIC complaint index of 0.20, which is well below the baseline industry average of 1.00, indicating a high level of customer satisfaction.

Ameriprise has also received recognition for its customer service, including being awarded the J.D. Power Certified Customer Service Program certification for the fifth consecutive year. Additionally, clients rated Ameriprise 4.9 out of 5 for overall satisfaction, providing advice based on financial goals, and always putting clients' interests first.

Ameriprise term life insurance quotes

Ameriprise offers both term and permanent life insurance policies through RiverSource Life Insurance Company. The company serves all 50 states and Washington, D.C., so no matter where you live, Ameriprise may be an option.

Ameriprise sells its coverage through local agents and financial advisors, so you will need to contact an agent in your area to discuss your situation, decide how much life insurance you need, and get a quote.

Term life insurance

Term life insurance lasts for a set period, with Ameriprise offering 10-, 15-, 20- or 30-year terms. Term policies are generally much cheaper than permanent policies, but they do not come with a cash value account. Term policies may be a good choice if you are a young family or need coverage for a certain time, such as while you pay off debt. Remember that term policies typically get more expensive as you age, so for older customers, they may not be the best option.

Permanent life insurance

Ameriprise, through its RiverSource brand, offers several permanent life insurance options designed to provide lifelong coverage with added benefits such as cash value growth and flexible premium payments. These policies can be a good choice for those seeking long-term financial security and the potential to borrow from their policy.

Here’s a brief overview of the options:

• RiverSource indexed universal life insurance: Offers protection against market downturns with index-based interest crediting, income tax-free death benefits and the potential for tax-free income through withdrawals or loans.
• RiverSource variable universal life 6 insurance: Provides a tax-free death benefit, over 85 investment subaccounts and options for tax-deferred cash growth. Includes no-lapse guarantees and flexibility with a range of investment options.
• RiverSource variable universal life 6 insurance – New York: Similar to the standard Variable Universal Life 6, but tailored for New York residents with specific compliance features.
• RiverSource survivorship variable universal life insurance: Covers two lives, with the benefit paying out after the second death. It offers tax-deferred cash growth and various investment options.
• RiverSource survivorship variable universal life insurance – New York: Tailored for New York residents, offering protection on two lives and various cash growth options.

Ameriprise term life insurance riders

Ameriprise offers a long-term care rider for those who would like coverage for expenses prior to their passing, such as assisted living or home care services. This rider can be added to permanent life insurance policies.

In addition, Ameriprise offers a chronic care rider for permanent life insurance policies. This rider allows you to use benefits for long-term care expenses while you are still alive, or as an income tax-free death benefit for your loved ones after you are gone. This rider also decreases the death benefit of the life insurance policy as you use the available benefit to pay for chronic care costs.

Ameriprise also offers a range of other insurance products, including annuities, IRAs, mutual funds, auto and home insurance, and disability income insurance.

Frequently asked questions