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Posted on October 29, 2009 by Denise | Posted under Insurance
Convertible Life Insurance
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Where term life insurance will offer you coverage for a fixed period of time, a convertible life insurance policy will allow you the ability to transform your temporary term life policy to a permanent one. For example, if you have a convertible term life insurance policy for 20 years, you can change the policy to a whole, universal or variable life insurance policy without any penalties or evidence of insurability. The conditions will of course vary from insurance company to insurance company but in general, with convertible life insurance you are offered a choice. For many people, the circumstances that occurred when purchasing their insurance policy are not the same ones that exist later on. In such cases, convertible life insurance gives youre the option to change your policy so that it meets your current requirements. Term life is a relatively cheaper policy on the whole. This is largely due to the fact that the death benefits are not paid off in case the policyholder is still alive by the end of the specified term. Therefore, a person who opts for a convertible term life policy can avail of lower premiums in the beginning. The transition from a Convertible Term policy to a whole life policy is also easier as there is no underwriting involved and it poses no extra risks. Keep in mind though that the conversion period specified in the policy is normally shorter than the duration of the term coverage. Convertible Term Insurance is also often offered as a supplement to a Renewable Term Insurance policy. This will offer you the same benefits of changing to a permanent policy before your term expires. A whole-life policy that begins from a convertible term life policy can also offer static premiums that cannot be altered during the lifetime of the policy. Even if the health conditions and age change, the premiums for such whole life policies do not change. Some whole life policies can be converted to offer cash out values and dividends that are paid out later on. In such cases, this type of policy would be ideal for a young family planning to build on its investments and savings in the years to come. A big advantage with a convertible term life insurance policy is that it allows a person to convert to a whole life policy inspite of any medical condition of health problem that may have cropped up during the term. If you have chosen a convertible policy and have paid all your premiums on time, then you have the right by law to extend your coverage without taking a fresh medical exam. This is a huge reason why a convertibility option is so popular nowadays. In general, if Convertible Term Life Insurance is purchased when you are young enough, it can provide a sound financial basis for building up a decent savings and building up on interest. For some, this type of mixed type of life insurance can be incredibly cost-effective along with providing a great deal of flexibility and a secure future for your family and dependents. About The Author: About AccuQuote: AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers. |
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