subject: Term Life Insurance- Converting to a Whole Life Policy [print this page] Term Life Insurance- Converting to a Whole Life Policy
If you have been reading up on term life insurance, you know that once you buy a policy you will be able to convert that policy to a whole life plan later on down the road. Not every term policy offers this advantage, however, so it will be up to you to find a policy that includes this feature if it is one that you want. You can easily convert your policy to a whole or universal policy without needing proof of insurability, making it easier to get long-term protection than if you were to buy it outright.
Converting your policy has many advantages. Term life insurance is a great policy to start with. It can be more affordable than whole life and it is easier to get approval for. However, some people need more protection than what a term policy offers or they want to extend their policy for longer than the term allows. In this situation, a conversion is a great option. You will be able to get approved for whole life coverage even when you couldn't by purchasing it outright and you will be able to extend your coverage for longer than a term policy normally provides.
When you applied for term life insurance, your approval rating is what made you eligible for the policy. Converting to a whole life policy allows you to use the same rating to get your new whole life policy, which gives more people the opportunity to get approved for this coverage. Also, you will be able to get rid of certain policy exclusions that renew every time a term policy renews, giving you more coverage and fewer restrictions on your life policy. Plus, you can also get a life insurance settlement with a convertible policy in the event that you need cash fast and don't have any other way to get it.
Converting term life insurance to a whole life policy makes sense for a lot of people. It allows you to extend coverage, get more coverage, create a cash value account with your life policy, and protect yourself in more ways than you might have imagined. You can start with the term policy for lower premiums and easier approval and then convert to whole life to reap the benefits of this policy without the risks or drawbacks that come from purchasing whole life from the beginning. No matter what, converting term to whole life insurance is generally a win-win for everyone.
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