AIG: Introducing Term Conversions with AAS (Accelerated Access Solution) Chronic Illness Rider!

09-11-2020

As of 08/31/2020, Select-a-Term policies issued in the past 5 years could be eligible to convert to a permanent policy with the Accelerated Access Solution (AAS) Rider. The AAS rider offers income-tax-free access to the death benefit if the insured is diagnosed with a chronic illness.  NonInvasive underwriting will be required to determine eligibility for the AAS Rider. The maximum AAS benefit is $3 Million, and partial conversions are allowed.  This rider is not available for previously converted policies and is available in all states.

Required Forms:

  • AAS Supplemental Application
  • Inforce Policy Change Form

Policies that are eligible are:

  • Issued in the past 5 years and attained age up to 60 or younger
  • Underwriting class of Standard and Better (No table rating, no flat extra)
  • Permanent Products available:
    • Max Accumulator +
    • Value+ Protector
    • Platinum Choice VUL 2  (Platinum Choice VUL 2 is not approved for sale in the state of New York)
    • Secure Lifetime GUL 3

Transition Rules for AGL (American General Life Insurance Company- all states except NY)

The Accelerated Access Solution (AAS) can be requested through a streamlined process for term conversion applications received on or after August 31, 2020.

  • If the AAS is requested, it can be added to the policy under the following conditions:
  • A completed Inforce Change application must be submitted
  • A completed Chronic Illness Supplemental Application and any required disclosures must be submitted.
  • Applicant must pass a non-invasive underwriting review process for the Chronic Illness Rider.
  • Rider will not be available on pending applications or previously issued policies.
  • No Inforce reissues to add the rider will be allowed

Transition Rules for USL (United States Life Insurance Company- for New York business)

The Accelerated Access Solution (AAS) can be requested through a streamlined process for term conversion applications received on or after August 31, 2020.

  • If the AAS is requested, it can be added to the policy under the following conditions:
  • A completed Inforce Change application must be submitted
  • A completed Chronic Illness Supplemental Application and any required disclosures must be submitted.
  •  A completed Terminal Illness Rider application must be submitted.
  • Applicant must pass a non-invasive underwriting review process for the Chronic Illness rider.
  • Rider will not be available on pending applications or previously issued policies.
  • No Inforce reissues to add the rider will be allowed

For assistance with determining policy eligibility, or if you need conversion illustrations or conversion forms, please give us a call at 1-800-792-6795.