The Term Conversion Process
The term conversion provision allows the policy owner to convert a term policy to a
permanent life insurance plan of the company’s choosing during the term conversion period
without evidence of insurability. The term conversion period may vary by product. Please be
aware that term conversion will not be processed if received past the conversion expiry date.
No grace period is allowed. The following is an outline of the steps necessary to complete
a term conversion.
1.Verify conversion information with the
Producer Call Center (1-877-200-0220)
Conversion Expiry Date
Underwriting Class
Information regarding form and
illustration requirements
2.Determine the best product for
customer’s needs
Policies prior to 5 years old can convert to the following products provided the
product is approved in the state
AG Choice Index GUL
AG Secure Lifetime GUL
ContinUL
ContinUL Extend Plus
American Elite Whole Life
Elite UL
Elite Index
 Elite Transition UL
Elite Global Plus
Policies over 5 years old can convert only
to Elite Transition UL and American Elite Whole Life
3.Prepare Required Paperwork.
Conversions are easy and very little effort
needed, PROVIDED we receive the case in
good order.
Completed signed Illustration
Complete the Term Conversion Request
No Underwriting Required Form (AGLC101672-PL). In the case of increasing face amount or converting rider, submit the In-Force Change Application (state specific) instead.
4.Submit Case
Include Cover Letter, Application,
Illustration, any other forms
Fax to Term Conversions 800/382-4662
5.Confirmation
Approximately
24 hours after faxing, the key contact will receive an email
confirmation with the new policy number that is being assigned along with any
requirements still needed
If you are mailing a premium, write the new policy number on the check and mail to either address:
Regular Mail
Overnight Mail
American General
American General
PO Box 13487
3051 Hollis Drive
Springfield, IL 62791 Springfield, IL 62704
6.Compliance Requirements
The producer’s Anti-Money Laundering
Certification has to be current.
Agent and Agency Codes are needed and
have to be active
Complete the Term Conversion Request No
Underwriting Required Form
Section
A – Current Policy Information.
Verify that the existing policy number and
insured match.
Section C – Conversion Request. Indicate if there will be any remaining coverage. Do not leave blank.
Section D – Effective Date. New issue “day”
must be the same issue “day” as the term
plan. For example, if the term policy was
issued September 1, then the new plan will
be issued on the 1st. Best advice is to have
the new plan issued based on the paid-to
date of the term plan. Any unearned premium
on the term plan will be refunded.
Section E – Primary Insured Information
Provide
all data, do not leave blanks. This information is compared against the policy being converted.
Make sure the name is the same on the
old policy and the new policy. If not, please
complete a Name and Address Change (Form AGLC0222).
Section F – Owner Information. Complete
only if the owner is other than the insured. If
the owner is a trust, please complete
Sections G and M as well.
Section I – Beneficiary. Percentages must add
up to 100. Full name(s) and relationship to the
insured must be included
Section J – Billing
Bank Draft information. The Term
Conversion Request allows you to choose to use existing banking information.
However, when a term plan is expiring, the
system automatically stops the draft and places it on a quarterly billing, which removes the banking information. It’s always a good idea to complete an
Electronic Funds Authorization (Form AGLC0220 for AGL or USL0058 for USL) so we have accurate data.
Draft Day – has to be the same as the issue
date or prior. Only exception is if an
additional month’s premium is received or
new policy is a whole life plan.
Section
K – Signatures. The agent and policy
owner have to sign both the application and
the illustration.
Illustration or Quote
Use Illustration Software or contact Internal Sales 800/677-3311 option 2
Signed by owner and agent and Dated
on or after the date the illustration was produced
Required if converting to a UL. Not
required if converting to whole life.
Illustration issues to avoid
a.
Pages missing
b.Run date vs. signed date. Signed date cannot be before the run date
c.Rate class must be same as the rate class as approved by the original term policy
d.Age must be the nearest insurance age, unless you are saving age
e.Riders must be illustrated. Many times the Terminal Illness Rider is on the term policy but is not illustrated for the new policy. If it is going to be on the new plan, it must be illustrated.
f. State on the illustration has to match the
state where the application was signed
Possible Other Forms
If the Insured is over age 67, Agent
Certification Form (AGLC101994) AND
Premium Finance Disclosure Form (AGLC102053)
Terminal Illness Rider (TIR) Disclosure
Form is needed for the following states: AL, AR, CT, DC, IN, KS, LA, MA, MI, MN, MS, NC, OH, OK, OR, TX, VA and WA
Change of Ownership Form (AGLC0013 or USL0057)
Electronic Funds Authorization Form (AGLC0220 or USL0058)
Enclose check for initial premium
American General Life Companies, www.americangeneral.com, is the marketing name for a group of affiliated domestic life insurers,
including American General Life Insurance Company and The United States Life Insurance Company in the City of New York. ©2011. All
rights reserved.
AGLC105323 FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC.