If you first bought your life insurance policy when you were young and just starting a family, chances are that you opted for term life insurance. Many young couples opt for this plan because it’s cheap, simple, and you know it’ll cover your children while they’re young and living at home.
But is it still the best fit for you?
What happens if you let the term life insurance expire while you still need it? Now you’re completely without any life insurance protection, and it may not be easy, affordable or even possible to get another plan.
So let’s talk about converting your term life insurance into a longer term plan.
When to convert term life insurance
A lot can change in a decade or two.
Maybe your kid is still living in your basement. Maybe you had kids later in life. Maybe you adopted your nephew or your granddaughter. Maybe you just want to be able to draw upon your life insurance while you’re living in order to supplement your retirement so you want a policy with some cash value.
Or maybe your health has changed so you are now uninsurable. You know that once your current policy expires, no company would take on the risk of your health condition.
Whatever the reason, don’t just walk away from your plan, and don’t let it expire before you figure out your next step. If you do, it might be too late.
How to convert your policy
Many people don’t realize that you can actually convert your term policy into permanent insurance. The catch is that you have to convert it during the lifetime of the term policy.
That’s right: many companies allow you to convert your term policy into permanent insurance. This will ensure your loved ones are protected into the future.
As long as you are insured by a reputable company, we should be able to work out a way to convert your term insurance into one that’s a better fit for your current circumstances.
One of the best parts is that usually you don’t need a medical exam to make this switch when you convert it during the lifetime of the existing term policy.
This is especially important for older folks or people who may have developed a chronic health condition like diabetes or disease. For many people, if they wait until their old policy expires, the required medical exam will disqualify them from any policy.
Don’t let that happen to you!
While your premium will increase after converting your policy, many policies are still affordable — especially when you consider the peace of mind gained from ensuring ongoing protection for your loved ones.
What do I convert it to?
There are lots of plans to choose from, but the basics are universal, whole life, or permanent. To understand the differences, read my blog on the types of life insurance.
If you’re worried about your term policy expiring, I’d love to sit down with you to figure out which is the best option for you and your current life situation. Book a time with me to start your path to financial security today!
