How long can I keep this coverage?
Unlike employer-based coverage, this insurance is portable--which means that if you change jobs, your coverage does not terminate. Access to this insurance is through your AAP membership. Just maintain your membership to keep your coverage. (See the "When Insurance Ends" section of the attached brochure.)
What is the difference between Level Term Life and Group Term Life?
A Level Term policy means that the rates are guaranteed for a specific length of time. In this case, the rates are guaranteed not to change for 20 years after the initial coverage effective date.
What happens to my coverage once I’ve reached the term?
Premiums are guaranteed to remain level for the first 20 years of coverage. At the end of that period, you may reapply for 20-year level term rates then in effect for a subsequent 20-year period, provided the insured person is under age 60 and is otherwise eligible. If your application for a subsequent 20-year term of guaranteed rates is approved, your premium contribution will be based on the insured person's age, health and tobacco/nicotine use at the time coverage becomes effective and will be guaranteed for a new 20-year term.
If you and your spouse are not approved for a subsequent 20-year term of guaranteed rates, or you do not apply for a subsequent 20-year term, coverage will continue in force on a non-guaranteed rate basis, under which premium contributions increase as the insured ages.
I’m a little bit older, should I consider a whole life policy?
That’s an excellent question. Whole or permanent life policies can be a good resource. Keep in mind that whole life/permanent life can build cash value, however, whole life generally costs more than term life. With term life, you know exactly what coverage you’re paying for at a competitivly priced rate.
Have more questions?
For more information on this coverage – features, costs, eligibility, renewability, limitations and exclusions – please download the brochure to the right or contact a specialist.