subject: How To Switch To Whole Life Insurance [print this page] Since the premium rates of term life insurance are cheaper, people prefer to go for term life insurance at a young age. But it is also common among people to switch to whole life insurance at a later stage of their life, when they can afford paying high premiums. Getting a whole life insurance is a good idea because term life insurance policies offer coverage for only a certain period of time. Whole life insurance is expensive but those who wish to be covered throughout their life should definitely opt for whole life insurance.
If you have already invested in a term life insurance and want to switch to whole life insurance you need to follow the steps given below.
Check your existing policy and see whether it is convertible. Read your insurance policy if your agent has not said anything about conversion when you bought the policy. If you are unable to interpret all the term, call your agent and ask him or her to interpret it for you. There are policies which you can renew but can not convert. If it is the same with your term life insurance policy then you will have to look for a new policy all together, instead of converting your existing plan.
Ask your agent whether your life insurance company gives you the option of closing your existing policy and buying a new whole life insurance policy. Make sure you understand the benefits the new policy will offer you. If you are not satisfied with what the policy is offering, switch to another life insurance company.
Whether you are converting your existing policy or buying a new one, go for an adjustable policy that is flexible so that you can adjust the premium, length of coverage and face amount as per your requirements.
If you think that in the initial years you would like to pay less than normal and make up gap later on, then you should opt for a modified whole life insurance policy.
On the other hand you need to go for a limited pay whole life insurance policy if you wish to pay the premiums for the initial 10 or 20 years and have the policy paid for till you are alive.
If you are switching to whole life insurance policy, consider buying a joint life policy. This will ensure that both you and your partner are protected against all odds and in the long run it will prove to be cheaper than you have thought while investing.
Depending on the conversion value, you may need to pay your agent additional premium for whole life insurance.
Keep these things in mind when you ask for whole life insurance quotes. This will help you to choose the policy that best suits your needs.
by: Jeson Ross
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