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Converting Term Life to Whole Life

Convert Your Term Life Insurance to Whole Life

Your reasons for buying life insurance may change as you age. Although you might have found a term policy to be the best choice when you were younger, today you might need a policy that covers you longer and can provide more benefits. The best term life insurance is going to be able to cover your needs over time. One convenient solution, if you own a convertible term life policy, is to convert some or all of your term life insurance to a whole life insurance policy.

If you’re curious about what is involved in converting your term life policy to whole life insurance, talk to an independent life insurance agent in the Trusted Choice® network. Contact one of these agents today to get answers to all of your questions about both term and whole life insurance. You’ll be able to find the right coverage for both your current and future life insurance needs.


U.S. Stroke Statistics

Here are some stats about stroke – a common medical event with a sudden onset that affects thousands of adults each year:

  • 6.2 million non-institutionalized adults have experienced a stroke
  • In a given year, approximately 41 people per 100,000 die from stroke
  • Stroke ranks #4 as a cause of death in the U.S.

What Does It Mean to Convert Term Life Insurance to Whole life Insurance?

Most term life insurance policies sold today come with a conversion feature that allows you to convert some or all of your term life insurance policy to a permanent policy like whole life, universal life or variable life. Some term policies also allow you to convert your term policy to a permanent policy in phases.

Most term policies have a deadline where you must either convert some or all of the policy or you will lose the ability to do so. Many term policies also have an age limit after which you can no longer convert a term policy. This deadline is usually pegged at age 75, but it can vary from company to company.


Why Would You Convert Term Life to Whole Life Insurance?

There are several good reasons why it might be a good idea to convert a term life policy to whole, universal or variable life insurance. These reasons include the following:

  • Your health has deteriorated and you might not be eligible for affordable life insurance when your term life policy expires. By converting some or a portion of your term policy to a permanent policy such as whole life, you will be able to do so without having to take a medical exam.
  • You need life insurance longer than you initially expected, and want a policy to cover you for the rest of your lifespan. By converting some or all of the term policy to a permanent policy, you will have life insurance protection for your entire life.
  • You may have purchased your term policy when you were younger, and it was all you could afford at the time. You may now have more earning power and may want the savings/investment feature found in a permanent life insurance policy. You could potentially utilize it for retirement or as a loan later on in your life. A permanent life insurance policy contains a cash value accumulation feature which can strengthen your overall portfolio.

Should You Convert Your Term Life Insurance to Whole Life Insurance?

If you discover that your health has deteriorated because of a degenerative disease, or you have an inherited illness which has or is likely to manifest itself later in life, converting your term life may be a good idea. If your health is deteriorating or it appears likely that it will, it is possible you may not have the ability to renew your term policy or afford other forms of life insurance coverage later on.

Life insurance companies may not offer you a permanent policy because of your health condition. Potentially, the premium rates on permanent life options could be too expensive for your budget. One ideal solution to either of these problems is to use the convertibility option that many term policies offer. You’ll may be able to convert all or a portion of your existing term life policy to a permanent policy without having to take a medical exam.


How to Convert Term Life to Whole Life Insurance

You must convert your term life policy to whole life insurance or other available forms of permanent life insurance policies before the conversion expiration date specified in the policy. Your best bet is to either contact the life insurance agent or the company you bought the term life insurance policy from directly to arrange the conversion.


When Should I Convert My Term Life to a Whole Life Policy?

You can convert some or all of your term policy anytime before the conversion expiration date in the term life insurance policy. If you plan to convert your term policy, it is more affordable to so when you are younger, as premiums for permanent policies are more expensive as you age. They are also more expensive because they have a cash value accumulation feature that retains greater value for you going forward.

If you are just beginning your search for convertible term life insurance, contact an independent agent in the Trusted Choice network who can help you compare several options and make the right choice for your needs.


How to Decide Whether to Convert Term Life to Whole Life

When you are considering converting a term life to a whole life policy, there are many different factors to take into account, including your current budget, your need for flexibility, and the financial obligations your family will have in the future. For this reason, it is a good idea to get professional advice to help with your decision making.

For assistance choosing whether to convert your term life insurance to whole life or some other permanent policy, contact an independent agent in the Trusted Choice network. One of these local agents in your area can help you make the best choice for your needs.

Contact a local independent agent today to get started protecting your future.

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