3 Point Conversion?

Many folks choose term life products as a biggest-bang-for-the-buck life insurance option. These plans feature lower premiums than their permanent coverage brethren (eg Whole and Universal, etc), and the premiums are guaranteed for a specific number of years, after which the rates tend to sky-rocket. By then, of course, many (most?) folks no longer need all that coverage, and at least a few who do need it no longer qualify health-wise for a new plan.

What to do?

Well, one really helpful feature of most term life plans is their convertibility feature, which allows one to purchase a like amount (or less, if desired) of permanent insurance with rates that are guaranteed for the rest of one’s day’s on this mortal coil. Yes, they can be a bit pricey, as well, but there are some unique benefits, as described by FoIB Brian D:

“So, what can you do when you realize you need all or a portion of your life insurance to last beyond the initial length of your term?It means that any time after the first policy year, you can change from a limited-time benefit to a permanent one without answering health questions, having bloodwork or any other physical examination. In most cases, the death benefit for the new permanent policy will be in force until age 121, providing you with lifelong coverage.”

Highly recommended reading (no foolin’!).