July 21, 2022
My Term Life Policy is About to End. What Should I Do?
Do you have a term life insurance policy? Term life policies are designed to provide temporary coverage. Sometimes we compare term life to renting an apartment, whereas whole life is more like owning a home. Because term life is designed to be a temporary life insurance solution, you should review your policy before the policy term expires. Your policy may provide options like the ones listed below, and sometimes those options are only available to you during a specific window of time.
Some term life policies allow you to renew after the end of the initial term. This typically ranges between 10 and 30 years. If you renew your policy, you’ll keep your life insurance coverage. However, it often comes at a higher cost. Watch your premiums closely because they may rise each year as you age. Depending on your situation, it may be in your favor to continue paying for your term policy (even at a higher price), or it may be better to purchase new coverage. It’s important to talk to a life insurance agent who can provide you with valuable guidance. Your agent can assess your current needs and evaluate if you’re likely to qualify for a new life insurance plan.
If your policy has a conversion option, you can convert part or all of your term life coverage to permanent life insurance, like whole life or universal life. A life insurance agent can help you understand your policy’s conversion requirements. For example, conversions might have to occur during a specific time period. Conversions are automatically approved, and they can be extremely valuable to people who do not want to go through underwriting. If your health has worsened since purchasing your term life policy, you’ll be able to get permanent life insurance without answering any medical questions or undergoing a medical exam.
Talk to Your Agent
It’s critical that you speak to a life insurance agent to be sure you understand your current policy, as well as all of your options. BetterLife agents can evaluate your life situation holistically, taking into account your family’s needs, your finances, and your health, to make a recommendation. If you’re not sure who your agent is, please contact our Home Office so we can connect you with an agent.
At BetterLife, we believe knowledge is power. Are you interested in expanding your knowledge even more? Click here to learn about permanent insurance that will last a lifetime.