How AIG Return of Premium Life Insurance Works

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American General announced the introduction of a new term life insurance product. This article discusses how the AIG return of premium term life insurance works.

The new term life insurance product released by AIG provides insurance policyholders a death benefit and a return of premium feature.

Being one of the best term life insurance companies in the United States, AIG seeks to improve the quality of their insurance policies and this new feature is a step in the right direction.

Like I said earlier, I would be showing you how the AIG return of premium life insurance feature works.

You probably would see reasons why you should purchase life insurance from American General.

Here’s a brief rundown of the company’s life insurance policy with some very good recommendations before I show you how their return of premium life insurance works.


Life Insurance at AIG

AIG American General is a US-based insurance and financial services organization that is reckoned all over the world.

It is a member of the American International Group, Inc. and is the biggest underwriter for industrial and commercial insurance in the United States.

When life insurance companies are mentioned in the United States, AIG is not always excluded from the list as they are one of the top-ranked life insurers in the United States.

AIG’s reach goes beyond the borders of the United States as they have a presence in over 130 countries of the world. In these countries, their member companies provide a wide range of life insurance and general insurance.

AIG Global

Under their global reach auspices, AIG serves insurance products to individuals, businesses, organizations, and institutions through their many distribution channels.

Aside from providing life insurance and general insurance, AIG also provides services such as retirement savings, asset management, and general financial services.

Their financial services make for the provision of consumer finance, aircraft leasing, financial products, market making, and so on.

AIG provides one of the largest retirement savings platforms in the United States and their asset management feature is top-notch.

The company specializes in providing investment management strategies for institutional and individual markets in the areas of alternative investments, real estate, fixed income, and equities.

As proof of their worldwide reach, the company’s common stock is listed on the New York Stock Exchange and other stock exchanges in Paris, Switzerland, Tokyo, and London.

No doubt, AIG is not a name to overlook when matters surrounding life insurance, retirement savings, and asset management come up.

With that, let’s see how AIG’s return of premium life insurance works.


AIG Return of Premium (ROP) Life Insurance

The return of premium (ROP) is a benefit that comes with the new term life insurance introduced by AIG.

Alongside the return of premium (ROP) benefit, the new term life insurance also has a death benefit feature.

These are some of the benefits and features of the return of premium term life insurance feature.

  1. Full Return of Premium

ROP term life insurance feature offers a full return of premium at the end of your level-premium term.

This is the first time a company is offering full return for premiums paid when a policyholder’s term life insurance ends.

  1. Cash Value

Most term life insurance policyholders want the cash value that is often attached to permanent insurance.

At the same time, they would like to lower the cost of term life insurance protection. With the ROP feature, they can have both.

  1. Reduced Cost

There is a big difference in the provisions of permanent insurance and term insurance.

This gap is bridged by this new feature as persons with low-cost term insurance can enjoy a good number of features.

  1. Guaranteed Cash Values

Based on a percentage of the money paid as premiums, the ROP life insurance feature guarantees cash values.

A policyholder will be paid the cumulative amount on the premium they paid during the life insurance premium when it ends.

Rider and substandard charges are excluded as the insured gets the complete cash value paid.

  1. Level-Death Benefit

Another benefit of this feature is that it guarantees level-death benefits.

The level-death plan comes with guaranteed level premiums in the first 15, 20, and 30 years with coverage expiring at 95 years.

  1. Conversions

The return of premium term feature allows the insured to convert to a level-premium, level-death permanent life insurance policy.

The conversion is carried out hassle-free with no worries as the case value of the previous policy will be transferred to the new one.

  1. Available Riders Included

There are riders included with a waiver of premium and child rider.

  1. Terminal Illness Endorsement

Provided at no cost and additional premium, this feature offers terminal illness endorsement to the insured.

The only downside to this benefit is that some states have not approved the use of this terminal illness endorsement.

It only works in states where the terminal illness endorsement feature works.


Cost of AIG Return of Premium Term Life Insurance

There are four (4) cost levels available at AIG. They include:

  1. $100,000 to $149,999
  2. $150,000 to $249,999
  3. $250,000 to $499,999
  4. $500,000 and above


The latest introduction by AIG American General in their term life insurance is the return of premium (ROP).

This feature comes alongside a death benefit and there are other benefits to it.

The ROP term life insurance feature guarantees the full return of premium, cash values, level-death benefits, terminal illness endorsements, and more.

Reckoned as one of the leading providers of life insurance, AIG is a sure choice for your life insurance policy.

Brodrick Emmanuel Ebube
Brodrick Emmanuel Ebube is the content manager at He works with other contributors from the ideation of content and down to its execution. He ensures that all articles published on our blog meet international standards, and are well-optimized for search engines. Connect with him on Twitter - @gospelcaster_ng

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