A few years ago you purchased your term life insurance policy. You pay a very inexpensive premium.
You have enjoyed the security that this policy afforded you over the years.
You have recently discovered that a hereditary disease will likely rear its ugly head.
Even though your youngest is close to graduation you will still need your life insurance policy as you want to protect your mate in case you should die suddenly.
Converting Term Life Insurance
You could try to buy some more term life insurance that would give you a few more years of protection. The problem is that you may not be able to get it because of your recently discovered health problem.
If the company approves a policy you will have to pay considerable more for it. There is only one solution. If your original policy is still within the conversion period allowed by the contract you may want to convert your term policy to a permanent policy.
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Here are your options:
- Universal Life Insurance
You may elect to convert to a universal life insurance policy. This policy may be a good choice as it is based on term insurance. It is a term policy with a savings element attached.
You have the choice of deciding how much of your money goes to pay for death benefit and how much goes to savings. The life insurance company cannot deny your decision to convert your policy regardless of what the state of your health is.
- Variable Universal Life Insurance
One of the more popular choices is the variable universal life policy which is permanent life insurance based but your extra cash goes into an investment like a mutual fund and the like.
The beauty about the thing is its flexibility. These policies are sold by prospectus and the agent must possess an N.A.S.D. license in addition to his usual agents license…series 6 or series 7 license.
- Variable life Insurance
You can also convert your term insurance policy to variable life insurance. This policy is bases on the whole life policy. It is whole life with an investment attached. I find it a bit costly.
Your agent also needs a series 6 or series 7 N.A.S.D. license to sell this product. He is required to present you with a prospectus before you proceed with your purchase.
- Whole Life Insurance
You can also convert your term policy to a whole life policy, which may be a good deal because it lasts to age 100. You may also find this policy to be a bit pricey.
In either case all you need to do to convert your policy is to get an agent to give you a conversion form, which you complete and you get your policy in a couple of weeks.