How is it possible to Convert Life Insurance5870955

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If you own convertible term life insurance, your plan contains a supply that enables you to convert the policy to permanent life insurance (cash worth insurance) for example whole life, variable life, or universal life.

Convertible term policies generally state that transformation must occur in a particular moment following the coverage is released, or before you reach a certain age. When the plan is transformed, you have all the benefits of cash-value life insurance, including lifetime protection, a more stabilized premium structure, and also the tax-favored accumulation of cash value. (You may pay an increased premium for the money value insurance.) And, you won't be asked to provide evidence of insurability at the moment of conversion. As an example, in case you get a $100,000 term life insurance policy, you may elect to convert $50,000 to permanent life insurance while keeping $50,000 in term life insurance. Then, you may either retain the staying term insurance before the term period expires, or later change the $50,000 term policy to permanent life insurance, based upon your needs. The premium you purchase the permanent life insurance policy will generally be based on your age at that time of conversion (attained age), in certain instances it could be according to your age once the first coverage was bought (original age). Ask your insurance broker for particulars. read this