A term life insurance policy provides coverage for a specific term or period of time, typically between 10 and 30 years, and is designed only to give your beneficiaries a payout if you pass away during the term. If your policy’s term is coming to an end, you have three basic choices to continue the financial protection of life insurance.
|Extend your current term policy||Renew your policy on a year-to-year basis until you are 95 years old, but the insurance company will change your premium if you extend.|
|Convert your term policy to a permanent policy||Convert your term policy into a permanent policy without having to provide evidence of insurability, but there will be a specific deadline depending on your insurer.|
|Get a different life insurance policy||Shop around for a new term-life policy or check with your HR department to see if group term life insurance coverage is available through your company.|
If you want to extend or convert your current term policy, talk to your life insurance company, agent, or broker well before it expires. If you’re thinking of getting a new policy, a good place to start is to get an instant quote from a life insurance calculator. Combining a permanent (whole or universal) policy with a term policy can be one way to get the higher death benefit and additional coverage you need for a limited period of time.
There is no specific expiry date for converting a life insurance term, but it is recommended to begin the conversion process well before your term expires – at least a year before your policy’s stated conversion deadline.
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