AIG Term Life Insurance Program for Vietnamese in the U.S.

AIG Term Life is a life insurance program that has been trusted by many Vietnamese families living in the U.S. for years, thanks to its affordable premiums and valuable benefits in both life coverage and health-related protection. So, what should you know about the AIG Term Life program? What are the eligibility criteria? How much should you contribute monthly to maximize your benefits? Read on to find out!

Overview of AIG Term Life Insurance

AIG Term Life Insurance is one of the most popular life insurance products for the Vietnamese community in the U.S. This type of insurance protects for a fixed period (10, 15, 20, or 30 years) with level premiums throughout the term.

AIG offers two main Term Life options:

• Select-a-Term: Flexible coverage durations
• Quality of Life Insurance: Combines life insurance with critical illness benefits

Key Features of AIG Term Life

Flexible Term Options

Unlike many insurers that only offer standard terms (10, 20, 30 years), AIG’s Select-a-Term lets you choose a policy term from 10 to 35 years with annual increments. This is especially suitable for Vietnamese individuals with specific financial plans, such as:

• Protection until children graduate from college
• Coverage until a mortgage is paid off
• Financial safety until retirement age

Coverage & Conversion Options

AIG Term Life offers coverage amounts from $100,000 to $10,000,000, depending on your needs and financial capacity. Most policies include a conversion feature, allowing policyholders to switch to permanent (Whole Life) insurance without a new medical exam.
This is a major plus for Vietnamese individuals who want to start with a lower premium while securing long-term protection later.

Optional Riders

AIG provides several rider options that policyholders can add on:

• Accelerated Death Benefit: Receive part of the death benefit in advance if diagnosed with a terminal illness
• Waiver of Premium: Premiums are waived if the insured becomes disabled
• Accidental Death Benefit: Increases the death benefit if death is caused by an accident
• Children’s Term Rider: Affordable coverage for children

For the Vietnamese community, riders that protect family members or provide critical illness benefits are especially practical and valued.

Comparison: AIG vs. Other Insurers

AIG stands out for its competitive pricing and flexible terms, while Prudential offers strong rider benefits, and New York Life excels in conversion options.

Pros and Cons of AIG Term Life

Pros

• Competitive pricing: Ideal for individuals aged 30–50 in good health
• Highly flexible terms: Multiple coverage length options
• Simple application process: Some cases qualify for online application without a medical exam
• Convertible: Easy switch to permanent insurance when needs change
• Strong reputation: Rated A+ by AM Best for financial strength

Cons

• Premiums increase upon renewal: Renewal rates are usually higher after the initial term.
• Slower claims process: Compared to insurers like State Farm or Allstate
• Limited Vietnamese-language support: Fewer Vietnamese-speaking agents available
• Strict health requirements: Especially for higher coverage amounts
• No cash value: As a term product, there’s no savings or investment component

Who Should Consider AIG Term Life?

This insurance is ideal for:

• New Vietnamese immigrants in the U.S.: Affordable and accessible
• Young families on a tight budget: High coverage for a low cost
• People with long-term debt: Protection until loans (e.g., mortgage or business) are repaid
• Single parents: Ensures children’s financial security
• Small business owners: Protects business partners and loved ones

Application Process & Required Documents

Steps to Apply for AIG Term Life Insurance

1. Consultation & Quote: Contact an agent or use an online quoting tool
2. Application Form: Submit personal, medical, and beneficiary information
3. Medical Underwriting: May require a medical exam, depending on age and coverage amount
4. Review & Approval: AIG assesses your application and provides a decision
5. Sign & Pay: Sign the policy and pay the first premium

Required Documents for Vietnamese Applicants in the U.S.

• Identification: Green card, passport, or visa
• Proof of U.S. residence: Utility bills, tax documents, or other official records
• Health information: Medical history, physician contact details
• Employment & Income proof: Pay stubs, tax returns
• Beneficiary info: Full name, date of birth, phone number, and relationship

Note: Recent immigrants may face challenges if their Vietnamese medical history is incomplete. In such cases, AIG may request a full medical exam.

How to Optimize Term Life Insurance Costs

Tips to Save on Premiums

• Buy early: The younger you are, the lower your rates
• Improve your health: Quit smoking, maintain a healthy weight, and manage blood pressure
• Choose the right term: Don’t buy longer coverage than needed
• Pay annually: Save 2–5% versus monthly payments
• Compare quotes: Check at least 3 insurers before deciding

Advice for Vietnamese Americans

• Understand exclusions, especially regarding conditions common in the Vietnamese community.
• Consider riders: Prioritize critical illness coverage if there’s a family history.
• Be aware of the contestability clause: During the first two years, insurers can deny claims for misinformation.
• Know your conversion options: Learn when and how to switch to permanent coverage.

Real-life Scenarios & Solutions

Case 1: Young Family with Limited Budget

Mr. Minh (35) and Ms. Lan (32) recently immigrated to the U.S. with two young children. They want to protect their family but are budget-conscious.

Solution:

• AIG Select-a-Term, 20-year term
• Coverage: $500,000 each
• Monthly Cost Estimate:
  • Mr. Minh: $32–38
  • Ms. Lan: $26–32
• Recommended Rider: Children’s Term Rider ($5,000 per child)

Case 2: Vietnamese Business Owner

Mr. Tuan (45) runs a Vietnamese restaurant in California. He has business loans and is the family’s main provider.

Solution:

• AIG Select-a-Term, 15-year term
• Coverage: $1,000,000
• Monthly Cost Estimate: $110–140
• Recommended Riders: Waiver of Premium and Accelerated Death Benefit

Conclusion

AIG Term Life Insurance is a smart choice for Vietnamese Americans seeking flexible, affordable coverage with the option to convert to permanent life insurance later. It’s particularly suitable for newcomers, young families, and those needing financial protection during their career-building years in the U.S.

However, like all important financial decisions, Vietnamese individuals should consult Thinksmart Insurance for tailored guidance that suits their unique situation.

FAQs

1. Can people with chronic illnesses buy AIG Term Life insurance?
   Yes, but the premiums will be higher. AIG offers coverage for individuals with certain common chronic conditions such as type 2 diabetes, high blood pressure, or high cholesterol, provided these conditions are well-managed. In some cases, individuals with more serious illnesses may be declined or offered limited coverage.
2. Do I need a medical exam to apply?
   Not always. For smaller coverage amounts and younger applicants with good health, AIG may waive the medical exam. However, for higher coverage or if there are health concerns, a full medical underwriting process, including a physical exam, may be required.
3. Can I switch from Term Life to Whole Life later?
   Yes. Most AIG Term Life policies come with a conversion feature, allowing you to switch to a permanent (Whole Life) policy without a medical exam. This is typically available within a specific period stated in the policy.
4. What happens if I miss a premium payment?
   AIG typically provides a grace period of 30–31 days after the due date. If payment is made within this window, the policy remains in force. If no payment is received after the grace period, the policy may lapse, and coverage will end.