You might think that anything to do with insurance is complicated, and really, it can be, but it does not need to be. For instance, say you are wise enough to invest in a term life insurance policy, because you know it is the smart thing to do to protect your family financially, in case something happens to you. Before you pull any cash out of your wallet, find out if your term life insurance has a conversion rate. All this means is whether or not the policy may is convertible to a whole life policy, if that is what you want.
Even if you don’t really think you would convert your policy, it only makes sense to have that option available to you, in case something in your life changes and you need to convert it. And we all know how unpredictable life can be on occasion. So just be prepared by having various options at the ready for the future.
Is converting a rigmarole? No, actually it isn’t. You need to find out if you can convert, because it lets you do that without having to offer proof that you’re in good health. So should you develop a serious illness in the months just prior to the end of your insurance terms, you may be able to convert to a whole life policy and not get stung too badly on premium payments. If you don’t have the ability to convert, that is a whole other can of worms and it could well be expensive too.
Be aware that there are some insurance companies that offer low premiums, but do not offer the option to convert. While that might be a nice touch up front, and get you interested in their policies, it won’t do you much good it you want to have the option to convert. Never buy an insurance policy without knowing what it does cover and what it does not, or what it offers and what it does not. Also, don’t compare a policy with the conversion option to a policy without the conversion option. That is apples and oranges, and does not work.
The long and short of it is that you want what is best for your family, and if that involves term life insurance that may be converted to whole life later, then you may wish to go that route. Always do your homework. Ask questions. Then, ask more questions. You have choices and it’s best to make decisions based on solid information, not just pricing.
Clelland Green is with Benepath.com, a leader in providing health insurance quotes. Benepath provides individuals, families, and businesses with affordable health insurance quotes in just a few mouse clicks. To learn more, visit http://www.benepath.com.
