A. Yes, Secure Lifetime GUL 3 from AIG is a new and innovative stand-alone product that can help consumers unlock available longevity and chronic illness riders for even greater guarantees.
While term insurance is the most popular form of life insurance policy – mostly because it’s inexpensive up front – it only provides temporary coverage. For longer term (permanent) needs, there are a variety of choices – with one of the most secure and economical options being Guaranteed Universal Life (GUL). Often, GUL is a ‘no frills’ policy – offering few additional benefits. But, the Secure Lifetime GUL 3 provides innovative extras!
Here is a hypothetical example. George is 50 years old and looking for $1,000,000 of coverage for his family. He wants to provide life insurance for his spouse well into retirement, but sees that need dropping as he approaches the latter retirement years. He is also concerned about the impact of a chronic illness on his retirement.
He uses Secure Lifetime GUL 3 by paying $24K/yr for 10 years. Then, he pays nothing for 10 years.
Benefit 1. Retirement Income Benefit
At age 70, he takes $24K/yr out of the policy for 10 years (tax free!) using a unique feature of this policy – The Lifestyle Income Solution! This withdrawal of $24k / year for 10 years from the policy will reduce the amount of life insurance coverage from $1M to $420,000.
Benefit 2. Life Insurance Benefit
$1,000,000 to age 70; then it steps down to $420,000 by age 80 and continues to age 100. Guaranteed!
Benefit 3. Chronic Illness Benefit
While several options are available, George chooses to provide 2% of the life insurance coverage as a monthly chronic illness benefit – starting at $20,000/month during his earning years. The benefit then steps down to $8,400/month during retirement. Guaranteed!
If you are interested in knowing more about this innovative product from AIG, please contact us.