What is Convertible Life Insurance?

Life insurance requires monthly payments for coverage that will pay off after one dies. With an investment such as life insurance, planning is very important. Having the funds there to take care of your family and their needs after you’re gone is very important. Depending on your financial situation, the right insurance plan is important. Term life insurance might be better for you if you are looking for more affordable insurance for only a limited amount of years. The other option is whole life insurance which can last for your life and can be more costly. Convertible life insurance gives you the option to switch your term life insurance into permanent life insurance.

Converting Life Insurance

Since with most term life insurance policies you have the option to convert to whole life insurance you can avoid any additional underwriting. Generally term life insurance policies have increasing premium costs when one decides to renew at the end of the term. Having the option to convert term life insurance to whole life insurance can save you from growing premium costs before they get too expensive. If you want to continue on your life insurance policy then it would be best for you to convert your term life insurance to permanent life insurance.

Converting your life insurance can help you get better coverage that you need. When you switch over to permanent life insurance you are making sure that you are locked into your life insurance policy. When one passes on it is important to have the financing needed for the bills that are left behind. By converting your term life insurance you are sure that you will get a better rate in the long run that way premiums are not increasing every time you renew your term policy.

Term Life Insurance

When insuring your life you have some options between the two different types, term and whole life insurance. Term life insurance gives you the option to insure your life for a short time frame. Having this option can be very helpful for you budget and if a problem suddenly arises. Term life insurance can be very helpful because you have the option to also convert it to whole life insurance. If at first you do not choose whole life insurance and you choose term life insurance then it still isn’t too late.

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