Do you know what to do at the end of your 5-year, 10-year, or even 20-year term life insurance policy? If you are smart, you will quickly convert it to another insurance policy. But this option will not be as expensive as the 5, 10, or 20 term policy. That is why it is always best to start with a whole life policy, or purchase a 20-year policy. If you couldn’t afford to start with whole life, and needed a choice that was easier on your wallet, all is not loss. This is especially true if you find yourself with an unexpected health situation There are options for people like you who hold a term life policy. They include:http://www.houstonhealthchoice.com/what-is-a-health-insurance-denial/
• Convert your term life policy into a universal life insurance policy-
A universal life insurance policy is based upon term life insurance. It is a permanent but flexible choice when it comes to insurance. This type of policy is the kind that you can cash in if in need. You can decide what percentage of the insurance policy goes to death benefits, and how much to your savings account. The insurance company cannot stop you from converting your policy. This is especially important when you have an unexpected health issue creep up. Your family will be provided for financial even if you are not.
• Convert your term life policy into a variable universal life insurance policy-
This type of insurance policy is popular and permanent like the universal life insurance policy. This policy allows any extra money to go into a mutual fund, where it will net you more money. You can decide where your money goes.
Experts say that it where universal life insurance combines life insurance and savings, variable universal life insurance combines life insurance and investments. As with stocks, you can decide how aggressive you want to be with any combination of mutual funds, growth investments, or tax-deferred earnings.
• Convert your term life policy into a variable life insurance policy-
A variable life insurance policy is permanent life insurance that builds cash value. There is an investment component to this type of policy. You can choose to invest in stocks, bonds, money markets, and other investment choices to increase your yield. There is a built-in death benefit with this policy and you can take a loan from it. Only a licensed agent can offer these policies and they must present you with prospects before your transaction is complete. This type of policy is not for everyone because it can be quite costly.
• Convert your term life policy into a whole life insurance policy-
This is where you should have started from the get-go. Whole life insurance polices are expensive from the start, but are worth their weight in gold. The last until age 100, which means you won’t have to go through the whole term life insurance conversion process in the first place.need more information? go straight from the source.
No matter which type of conversion you attempt, it all starts with a knowledgeable broker, especially if you are considering universal or variable life insurance. Contact your insurance broker today.
