Term life insurance offers protection that insures your family for a specified period of time usually anywhere from one to 30 years. A term policy pays a benefit if you die during the period covered by the policy. If you stop paying premiums, the insurance stops.
With a renewable term policy, at the end of each term, if you wish to renew the policy, you can do so, but at an increased premium. The premium increases are disclosed when you first purchase the policy, and the policy can be renewed without a medical.
Some term insurance policies are convertible. Convertible term policies allow you to convert the policy into a permanent insurance plan (usually a whole-life, term to 100, or universal life policy), without having to submit to a medical examination. This is important in the event that you develop an illness or disability that would prevent you for qualifying for insurance coverage in the future.
Term life insurance is best suited for short-term and temporary insurance needs, such as covering debt obligations, mortgages, or income protection.
Since it is relatively inexpensive in the early policy years, it is well suited for those who wish to protect their assets but who do not have the income at that point in time to purchase permanent forms of coverage.
By purchasing a convertible term policy, you can guarantee that permanent insurance can be secured at some point in the future, regardless of changes to one's health.
To obtain a term insurance quotation, or request more information about which insurance products best suit your individual situation, please contact us.
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Term Life Policy Conversion
All of us go through changes in our lives – physical, emotional, spiritual, and financial. Knowing how to cope with changing priorities is especially important.
Many people purchase life insurance to address their financial priorities at a certain time in their lives, whether it be protecting their income, securing debts, or securing their mortgage.
As these priorities change, it is important to understand one’s options when it comes to their protection program. Many of our clients who have purchased term life insurance enjoy the option of convertibility.
Convertibility allows you to convert your current term insurance policy into a guaranteed insurance policy. If you are one of our clients with a convertible term life policy, we would like to take this opportunity to remind you of some of the advantages of policy conversion.
A permanent policy is a valuable tool when considering the following:
Income protection
Pension maximization
Estate preservation
You can take advantage of these features by converting your existing term policy. Best of all, conversion does not require a medical examination.
You can take advantage of this feature regardless of the status of your health, and obtain a permanent policy at rates reflecting your health at the time of the original policy application.
