Permanent term ends for AIG
AIG Life will stop offering permanent term products from August 31 this year.
Wednesday, July 29th 2009, 3:06PM
by David Chaplin
According to Mike Loftus, AIG Life head of marketing, the volatility of interest rates had made its permanent term product line unsustainable.
Permanent term products guarantee policyholders return of premiums at the end of the contracted period with life insurance cover during the interim.
In a statement, AIG Life said: "Policy increases will not be permitted post 31August 2009, other than contractual increases required under the policy terms and conditions, such as special events increases and future insurability increases.
"Permanent Term applications submitted until 31August 2009 will be subject to our normal underwriting process. If issued, the policy will be honoured as set out in the policy contract."
Loftus said while the removal of AIG's permanent term products was "unfortunate", existing policies would be honoured and new applications accepted up to the August 31 close-off date.
"[Permanent term] wasn't a major part of our business but it was unique in the market place," he said. "It's a shame to see it go."
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