4 Reasons to Convert Your Term to Whole Life Insurance ASAP
Term life insurance is an attractive option for securing your financial future. Term life is inexpensive, and it gives you the coverage you need to pay off final expenses. However, the drawback to term life insurance is it only lasts for a term, typically 10, 15, 20, or 30 years. Although term life insurance is a budget-friendly option, you should consider converting it to permanent insurance as soon as possible.
Lock in Low Whole Life Insurance Rates Early
Life insurance providers base insurance on mortality rates, and as you grow older your mortality rate increases. Each day you delay getting whole life insurance you risk paying a higher premium for whole life insurance. Instead of being comfortable with term life insurance, you should set a goal date to convert and lock in a low whole life insurance rate. Start by talking to your life insurance agent to check the rates for whole life insurance to get an idea of the rate you will pay. Once you know the rate, set a goal to convert your policy before your next birthday.
Your Health Can’t Prevent a Conversion
If you’ve had your term life insurance policy for a long time, you may have developed health conditions that concern you. Converting your policy to a whole life policy doesn’t require a medical exam. Since your life insurance carrier completed a medical exam when you purchased term life, you don’t need to undergo another medical exam. You shouldn’t let the thought of denial due to health affect your decision to convert your policy.
The Deadline for Converting Your Policy Is Approaching
Your ability to convert your term policy is on a clock. Until you convert your term policy, you are coming closer to the deadline which will prevent you from converting. As you know, it’s easy to forget to maintain your life insurance policy, many people do. However, you don’t want to lose this amazing feature. You should talk to your life insurance agent as soon as possible to discuss your options for whole life insurance.
Grow Your Cash Values
Whole life insurance has a unique feature that lets you build cash value over time. Your cash value balance increases with each payment, and you can use it as you see fit. For the most part, people who have permanent insurance like to use their cash value for emergencies because they have the choice of paying the money back or not. However, it takes a while to accrue a significant amount of money in your cash value balance. The earlier you convert your policy, the more time you’ll have to build a substantial cash value balance.
Although term life insurance is an excellent option, it’s not permanent. As soon as you can, you should convert your term life policy to a whole life policy.