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Convertible Term Life Insurance
Convertible term life insurance policies allow you to change them over to a permanent policy at a designated time. Usually, this can be done without additional underwriting, including a medical exam. This flexibility allows you to take advantage of the lower premiums that typically come along with a term plan until you decide you would like permanent coverage.
Understanding Term Life Insurance
Term life insurance provides coverage for a specific amount of time. A term can last as short as a year or as long as 30 years. If you die within the term of the policy, your beneficiaries will receive a death benefit that they can use to:
- Make mortgage payments
- Put towards a college fund
- Pay for funeral expenses
- Pay off debts
- Among others
Ultimately, your beneficiaries can decide how they would like to use the death benefit payment.
Why Choose a Convertible Policy?
If you purchase a non-convertible policy and you outlive your policy, your beneficiaries won't receive a death benefit when you eventually pass away. Unless you purchased a "return of premiums" term policy — which reimburses some or all of your premium payments if you outlive your term — you won't get any money back.
Convertible term policies allow you to convert your term plan into a permanent form of life insurance, such as universal or whole life. This means you won’t have a lapse in coverage once your term expires, and your beneficiaries can receive peace of mind that your coverage will stay in place until you die.
Keep in mind that most insurers require you to convert your term life plan to a permanent plan before you reach a certain age.
A licensed agent can help you learn more about your options and match you with a life insurance policy that makes sense for you. Speak with a licensed agent at 1-800-966-7169, or read through the following guides to learn more.
- Benefits of Term Life Insurance
- Can You Have Two Life Insurance Policies?
- Common Life Insurance Exclusions