Oct 30
Converting your term life insurance to a permanent policy
If you own a term life insurance policy this is a great way to protect your family for a specific, but limited, number of years. But, did you know that these low cost level premiums will increase dramatically when the term ends?
There is a guaranteed feature on your existing term life policy that allows you to easily convert your term policy to a permanent one. There are no hassles and no medical exams required.
Once the conversion is complete, while your new premium will be higher, it is guaranteed to remain at the same price for the rest of your life!
This option is guaranteed – even if you’ve had a change in health. Making the change is easy. Just contact your agent. Keep in mind that if you are considering converting from term to permanent, you will save money by converting sooner rather than later because premiums go up as you get older.
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October 30th, 2008 at 3:25 pm
One way to off-set the increase in premiums for the whole life policy is to purchase a smaller amount of permanent life insurance with your conversion privilege.
Also, to make up the difference in coverage you may want to get a new term life policy, since rates have declined 50% over the past 10 years.
That way, you have the coverage you need for the short term and lifetime coverage, too.