Not all term insurance is created equal! For a slightly higher premium, convertible term insurance policies can be customized with additional features to improve how term insurance fits your life now…and in the future.
Conversion lets you keep your protection longer than originally planned by switching your term policy for a permanent policy that can provide protection for life. It also guards against the risk of a future health decline limiting your ability to get new coverage in the future by removing the requirement to qualify medically when you convert. Unlike many term policies, convertible term insurance policies have an optional feature that extends the period of time you have to make the choice to convert.
If you’re worried about your family being irresponsible or naïve with a large lump sum of death benefit, convertible term insurance policies allow you to choose how much benefit is paid as a lump sum and how much is paid in installments. You can even structure the installments as monthly payments for up to 30 years. This lets you match your benefits with your goals like a lump sum to pay off debts and installments for future living expenses.
While you may not be worried about the potential for a chronic illness or care event today, it may become more important as you get older. Convertible term insurance policies have an optional feature that lets you add chronic illness protection to a new permanent policy when you convert your term policy. It also avoids the need for qualifying for the feature at the time of conversion.