What Are The Benefits Of Convertible Term Life Insurance?
A convertible term life insurance policy is a type of term life insurance that can be converted into permanent life insurance coverage under specific conditions. Here are some benefits of convertible term life insurance:
| Benefits | Description |
|---|---|
| Flexibility | Convertible term life insurance provides flexibility to switch to permanent life insurance coverage without going through a health exam. |
| Extended Coverage | You can extend your coverage by converting your policy before the expiration date. Some companies even allow you to convert partial amounts of your term life policy. |
| No Loss of Coverage | Some people worry about losing their coverage due to health issues. With a convertible term policy, even if you develop health problems, you can still extend your coverage by converting to permanent life insurance. |
| Health Rating | If you qualified for a health discount before, you’d keep that discount on your new permanent policy after the conversion, even if you develop health issues. |
A convertible term policy is a good option for someone who wants term life insurance coverage now but may want permanent coverage in the future. It also provides peace of mind for those who worry about losing their coverage due to health problems. With a convertible term policy, you can extend your coverage and switch to permanent life insurance coverage without going through a health exam.
It is important to note that your premium will increase when you convert your policy because you are switching to permanent coverage. However, the insurance company will keep your health rating the same, so you can keep your health discount on your new permanent policy after the conversion.
Overall, convertible term life insurance provides flexibility and extended coverage options while keeping your health rating intact. It is a good option for those who want to keep their options open for future life insurance coverage needs.
