American General Life Insurance (AGLA) is a well-established insurance company which operates in North America. Established in 1900, AGLA is a reputable company which provides competent life insurance products. This article overviews its life insurance offering and also suggests the points to keep in mind prior to taking out a life insurance policy.
An overview of American General Life Insurance policies
AGLA life insurance are useful products, which gives the following advantages:
• Provides funds to pay for funeral expenses.
• Creates an inheritance for heirs.
• Makes it possible to make charitable contributions upon death.
• Creates a source of tax-deferred savings.
Two types of Life Insurance policy
Term Life Insurance
It is whereby the individual is insured for a number of years, after which they will have to renew the policy for another term. This is the cheapest type of life insurance offered by Am General. However, it does not provide any kinds of savings.
Permanent Life Insurance
This covers the policy holder for an indefinite period of time .i.e. until death. The types of insurance are : • Universal Life - This offers the policy holder, the opportunity to both choose the amount of insurance and the premium to be paid.
• Index Life Insurance - With this insurance plan, money is tied into investments which are linked to external financial indexes. With this policy, it is possible to make better savings returns. However, there is also some degree of risk attached to the plan.
• Whole Life Insurance - It is the most popular type of permanent life insurance, which provides a guaranteed death benefit, as well as guaranteed cash values. The main difference between Universal and Whole life policies is that the whole life policies remain at a fixed level for the duration of the policy, while, in the case of Universal, there is some degree of flexibility. This means that the policy holder can increase the premiums, if he wishes to at any stage during the life of the policy.
Key points to keep in mind when purchasing Life Insurance
While AM General's life insurance offerings are comprehensive 21st century insurance policies, there are some points which the buyer must always keep in mind prior to taking out a policy :
• Decide how much money is required after death, and research into a policy which will cover these financial requirements.
• Make sure that the premiums are affordable.
• Enquire as to the best way to deal with any presently active life insurance policies. Do not cancel a policy until a new policy is active.
• Read through all small print.
• Shop around and compare features and benefits of all life insurance providers prior to taking out a policy.