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.