Is it Possible to Transform Life Insurance1506091

De BISAWiki

In the event that you own convertible term life insurance, your policy contains a supply that lets you to convert the policy to permanent life insurance (cash value insurance) for example whole life, variable life, or universal life.

Convertible term policies generally say that transformation must happen in a certain time following the coverage is issued, or before you accomplish a particular age. Once the coverage is transformed, you have all the benefits of cash value life insurance, including lifetime coverage, a far more stabilized premium structure, as well as the tax-favored buildup of cash value. (You may pay a greater premium for the cash value insurance.) And, you will not be asked to supply evidence of insurability at the time of transformation. For example, for those who have a $100,000 term life insurance coverage, you may choose to convert $50,000 to permanent life insurance while keeping $50,000 in term life insurance. Then, you may either maintain the staying term insurance before the term period expires, or later transform the $50,000 term coverage to permanent life insurance, based upon your needs. The premium you purchase the permanent life insurance policy will ordinarily be according to your age at the time of conversion (attained age), however in a few instances it can be according to your age when the initial policy was purchased (original age). Ask your insurance broker for details. read more here