Term insurance policies are valuable but they are temporary in that they are only designed to last a certain length of time. This specified period is called a term, and once that period ends, the coverage will also come to an end, and policyholders can choose to extend their coverage at this time by purchasing a new policy or by converting a qualified term insurance policy to a permanent life insurance policy instead.
If you are interested in financial protection for the rest of your life, converting to a permanent life insurance policy is ideal as it would offer you protection and peace of mind in the long run. A conversion would allow you to convert all or some of your term insurance policy into a permanent life insurance policy and most term life policies include this conversion option for free. This means that if you do decide to convert to a permanent life insurance policy, you would be able to do so regardless of your health as long as the conversion is done before the deadline that is listed on your policy.
There are a number of benefits to a term conversion, including the fact that you would get to keep the original health rating from the term policy when you convert, regardless of new health issues that may have developed recently. Such issues would normally increase your rates on a new policy or even make you uninsurable, depending on the health condition you have but this would not be a problem if you were to convert your term life insurance. Another benefit is that you would get to decide how much of the coverage you wish to convert, so long as this is done before the expiry date. Additionally, your new permanent policy would allow you to start building cash value, and you would have the option of securing life insurance coverage for your entire lifetime.
Every term conversion will have an expiry date, and this aspect will vary depending on the company and product. You will have until this date to convert your term policy into a permanent one, and you will not have to go through underwriting again if you follow this requirement and make a decision by the specified date. Your age will be factored in, and you will have the option of converting based on your current age or your age at the time the initial term policy was established. Depending on the option you choose, the cost of insurance may be more expensive or you may have to pay back the premiums and interest upon the conversion, so you need to understand the details surrounding each option, which you can discuss with your insurance agent.
dropdead can provide you with more details, and our agents will help you make an informed decision regarding this very important matter. We can provide you with term life insurance quotes and will help you choose the policy that is best for you, so contact us today!