Should You Convert a Term Life Policy to Permanent?

If you’re looking for life insurance, you’ll probably know there are several options, including term life insurance and permanent life insurance. Which of these is right for you?

Term life insurance provides coverage for a certain number of years, such as 10 or 30 years. When that period ends, the insurance expires. On the other hand, permanent life insurance provides coverage until you die.

Which you choose will depend on several factors. Term life insurance may be appealing because it is often the most affordable. You might consider it if you’re trying to ensure you’ve provided for a specific event, such as the payoff of your mortgage. Permanent life insurance typically costs more. However, it ensures that your beneficiary’s needs will be covered for your entire life. You might consider this type of life insurance if you don’t have a limited event you’re providing for.

While term and permanent life insurance are two major options, they aren’t the only options. For example, with “convertible” policies, it’s possible to convert term life insurance into permanent life insurance later; this may be useful if you develop a chronic health condition that makes it difficult to qualify for new coverage after your term expires.

It’s always a good idea to seek professional guidance when looking into life insurance. The quality of the life insurance policy is often connected to the quality of the life insurance company, and a financial advisor can help you check rates and ratings. Of course, he or she can also help you choose the policy that is best for you, given your individual circumstances and goals.

We can review your circumstances and goals and help you choose the term or permanent policy that works best for you. Call or email us for more information.