If you have a term life insurance policy, you may be wondering what happens when the term comes to an end. Term policies provide coverage for a specific period of time, typically ranging from 10 to 30 years, and premiums are typically lower than permanent life insurance policies. While term policies can be a cost-effective way to provide financial protection for your loved ones, it's important to understand what happens when the term ends.
Here are some things to consider as your term policy comes to an end:
· Renewal: Depending on the policy, you may have the option to renew your term policy at the end of the term. Keep in mind that premiums will increase. Normally these policies renew yearly and increase yearly, and you may need to undergo another medical exam or answer medical underwriting questions that may make you ineligible for renewal.
· Convert to permanent coverage: Many term policies offer the option to convert to permanent coverage, such as whole life or universal life insurance. This can provide lifelong coverage and potentially build cash value over time. However, premiums for permanent coverage are typically higher than term policies but normally lower than the yearly renewable option. Some term polices have a convertibility option, that without any additional medical underwriting - this benefit becomes more valuable to us as we age.
· Purchase a new policy: If you still need life insurance coverage, you can apply for a new policy at the end of your term. Keep in mind that your premiums will likely be higher than your original term policy, as you are older and potentially have new health issues.
It's important to review your life insurance needs regularly and ensure that you have the appropriate coverage in place. Your agent or Independent Life Insurance Broker should be conducting annual reviews to ensure everything is as it should be and your family is protected. If you have not heard from anyone since you purchased your policy, consider speaking with an Independent Life Insurance Broker, such as myself, to help you evaluate and determine which type of policy is right for you or if your current coverage meets your goals and needs. By understanding your options as your term policy comes to an end, you can make an informed decision and ensure that your loved ones are protected financially.
Looking forward to opportunity to serve you and your family,
Ivonne Cabrera
Independent Life insurance Broker
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