Grasping Convertible Term
Convertible term life insurance is a type of term life insurance that gives you the option to convert it to a permanent life insurance policy, such as whole life insurance or universal life insurance, without having to undergo another medical exam.
This can be a valuable option if your health changes or your financial needs change over time. For example, if you develop a health condition that makes it difficult to get life insurance, you can convert your convertible term life policy to a permanent life insurance policy without having to worry about being denied coverage.
Or, if you need more life insurance coverage as your family grows, you can convert your convertible term life policy to a permanent life insurance policy with a higher death benefit..
Here are some of the key features of convertible term life policies:
- Term length: Convertible term life policies typically have term lengths of 10, 15, 20, or 30 years.
- Death benefit: The death benefit of a convertible term life policy is fixed and will not change over time.
- Premiums: The premiums for a convertible term life policy are typically lower than the premiums for a permanent life insurance policy.
- Conversion period: The conversion period is the period of time during which you can convert your convertible term life policy to a permanent life insurance policy. The conversion period is typically 10 or 20 years.
- Conversion requirements: There may be certain requirements that you need to meet in order to convert your convertible term life policy to a permanent life insurance policy. These requirements may include passing a medical exam or providing proof of insurability.