The Corebridge Financial Select-a-Term policy is a flexible and comprehensive term life insurance offering designed to provide temporary financial protection for a policyholder's family or business during a period when it is most needed. Issued by Corebridge Financial (formerly AIG Life & Retirement), this policy stands out in the marketplace for its wide range of customizable term lengths and robust features, offering peace of mind to those planning for future security.

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Core Features and Structure

The Select-a-Term policy is fundamentally a pure term life insurance product. This means it provides a death benefit if the insured passes away within the specified term length. It does not accumulate cash value, which helps keep the premiums generally lower than permanent life insurance options.

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Customizable Term Lengths

One of the defining characteristics of this policy is its flexibility in choosing the duration of coverage. Unlike many competitors who offer only standard 10, 15, 20, or 30-year terms, Corebridge Select-a-Term allows the policyholder to select any term length between 10 and 35 years. This granularity is highly beneficial as it allows the coverage period to precisely match a specific financial need, such as the duration of a mortgage, a child's dependence, or a business loan.

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Level Premiums

The policy is structured with level premiums, meaning the premium payment remains constant throughout the chosen term length. This predictability makes budgeting easier for the policyholder. Once the initial term expires, the premiums become annually renewable and significantly increase, reflecting the higher mortality risk of the aging insured.

Guaranteed Death Benefit

The death benefit amount is fixed and guaranteed for the entire selected term. It is paid out tax-free to the designated beneficiaries upon the insured's death, providing funds for:

 

• Replacing lost income

• Paying off debts (e.g., mortgage, car loans)

• Funding education expenses

• Covering final expenses

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Convertibility Feature

A critical component of the Select-a-Term policy is its convertibility option. This feature grants the policyholder the right to convert the term policy into a permanent life insurance policy (such as Whole Life or Universal Life) offered by Corebridge Financial without undergoing a new medical exam or providing evidence of insurability.

 

The key aspects of conversion typically include:

 

• Conversion Period: The conversion must generally take place before the end of the level premium period or a specified age (often age 70 or 75), whichever comes first.

• Permanent Policy Options: The policyholder can choose from the available permanent life products at the time of conversion.

• Premium Calculation: The premium for the new permanent policy will be based on the insured's age at the time of conversion.

 

This feature provides a valuable safety net, allowing policyholders to secure permanent coverage later in life, even if their health deteriorates during the term period.

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Optional Riders (Add-ons)

To further customize the coverage, Corebridge offers several optional riders that can be added to the Select-a-Term policy for an additional cost. Common riders may include:

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1. Waiver of Premium Rider

This rider ensures that if the insured becomes totally disabled (as defined in the policy) for a specified duration, the insurance company will waive future premium payments while the policy remains in force.

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2. Accidental Death Benefit Rider

Provides an additional death benefit if the insured's death is the result of a covered accident, typically doubling the payout in such circumstances.

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3. Children's Term Insurance Rider

Offers a small amount of term life insurance coverage on the lives of all eligible children of the insured. This coverage is often convertible to a permanent policy later in the child's life.

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4. Accelerated Living Benefit Riders (Included or Optional)

These riders allow the policyholder to access a portion of the death benefit while still living if they are diagnosed with a qualifying severe illness (such as a terminal, chronic, or critical illness). While specific availability varies by state and product series, these living benefits provide crucial financial support during health crises.

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Underwriting Process

The application process involves a thorough underwriting assessment to determine the risk class and resulting premium rate. Corebridge typically offers various underwriting classes, ranging from Preferred Plus (best rates) to Standard, and possibly various substandard classes (table ratings).

 

The underwriting process usually includes:

 

• A detailed application form.

• A medical exam (paramedical exam), including blood and urine samples.

• Review of medical history (Attending Physician's Statement - APS).

• Checks of driving records and prescription drug history.

 

Corebridge may also offer a "no-exam" or "accelerated underwriting" option for eligible applicants who meet certain age and death benefit limits, allowing for a quicker approval process based primarily on health records and internal data checks.

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Policy Renewal

If the policyholder decides not to convert the policy or purchase a new one at the end of the level premium period, the policy automatically renews annually at a much higher, annually increasing premium rate up to a maximum attained age (e.g., age 95). While this ensures coverage continuity, the renewal premiums are usually cost-prohibitive, making conversion or securing a new policy the preferable financial strategy.

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Ideal Use Cases

The Corebridge Select-a-Term policy is well-suited for individuals who:

 

• Need maximum coverage for the lowest initial cost.

• Require coverage to align precisely with a specific debt or obligation (e.g., a 23-year mortgage).

• Are young families seeking protection for income replacement during child-raising years.

• Want the flexibility to convert to permanent coverage later in life without medical qualification.