Reasons to Convert Your Term Life Insurance to Whole Life Insurance
If you buy life insurance, then you take a big step towards securing your financial future. One of the most easily accessible policies is a term life policy, which is generally affordable and will last for a certain number of years. However, the drawback of a term policy is that, although it is budget-friendly, it does not last forever.
Your term policy will only pay out during its term (which might be 5, 10, 20 or 30+ years) and once it expires you will need to buy another policy. Therefore, it might be in your best interest to increase your term policy to a permanent (or whole) life insurance policy, which lasts indefinitely. Consider the benefits of why you should never wait to upgrade your coverage.
If You Enroll in Whole Life Insurance Early, then You Will Lock in Low Rates
When you buy life insurance, your insurer will examine your risk of mortality, which will help determine their risk of having to pay out on your behalf. Each day that you put off getting a whole life insurance policy, the more your risk of death or ill health might increase. Therefore, the more you are likely to pay for your coverage. That’s why we recommend that you upgrade your coverage earlier rather than later.
Policies Have Deadlines for Clients to Convert Them
Many insurers will only allow clients to convert their policies during a certain timeframe. After this deadline passes, they will no longer be able to take this step. Therefore, you’ll need to make the decision to upgrade your policy sooner rather than later. Plus, the earlier you upgrade your coverage, the greater your financial benefit might be during your lifetime.
You’ll Have More Time to Grow a Policy’s Cash Value
When you buy whole life insurance, you’ll have the option to include a cash value benefit on the policy. Under this benefit, a portion of your premium acts as an investment that will accumulate in a savings account over time. Eventually, you’ll be able to withdraw money from this account as a source of income.
The longer you have the cash value account, the more money the investment might accumulate, and the more income support you might be able to receive. Therefore, you’ll have a greater financial benefit available to use during your own lifetime.
While term life insurance policies are great coverage options, you might find additional benefits simply by upgrading your coverage to a whole life policy. Therefore, don’t hesitate to work with your agent to determine the best way to make this upgrade.