How is it possible to Transform Life Insurance5294810

De BISAWiki

If you own convertible term life insurance, your policy contains a provision that lets you to convert the policy to permanent life insurance (cash worth insurance) such as whole life, variable life, or universal life.

Convertible term policies generally say that conversion must occur in a specific time following the policy is released, or before you accomplish a certain age. When the coverage is converted, you have all of the benefits of cash value life insurance, including life coverage, a much more stabilized premium construction, as well as the tax-favored buildup of cash value. (You may pay a higher premium for the money value insurance.) And, you won't be required to provide proof of insurability during the moment of transformation. As an example, when you get a $100,000 term life-insurance plan, you can opt to convert $50,000 to permanent life-insurance while keeping $50,000 in term life-insurance. Then, you can either maintain the remaining term insurance until the term period expires, or later transform the $50,000 term policy to permanent life insurance, based upon your requirements. The premium you pay for the permanent life insurance coverage will generally be according to your age at the moment of conversion (attained age), but in a few cases it may be according to your age once the original coverage was bought (original age). Ask your insurance broker for particulars. more information