Ideas For AIG Select-a-Term Life Insurance

In Tuesday 5/19's blog, I wrote about the release of AIG's new term life insurance product, AIG Select-a-Term (original in concept, not so much in the name). I decided to revisit this topic today because the more I think about it, the more I realize the potential it has to really help life insurance consumers. For example, let's say you have a mortgage with 16 years remaining on it. Until now, in order to fully protect the mortgage with term life insurance, you would have to purchase a 20-year term policy. You could then cancel the coverage after 16 years when your mortgage was presumably paid off. On the surface this seems like a reasonable approach. However, when we consider the fact that you must pay premiums for 16 years on a policy that is priced for 20 years,