Is it Possible to Transform Life Insurance2664020

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In the event you own convertible term life insurance, your policy contains a provision that allows you to convert the policy to permanent life insurance (cash worth insurance) including whole life, variable life, or universal life.

Convertible term policies normally state that conversion must occur in a particular time after the policy is issued, or before you achieve a specific age. When the plan is converted, you enjoy all the benefits of cash value life insurance, including life protection, a far more stabilized premium construction, as well as the taxfavored build-up of cash value. (You may pay a higher premium for the money value insurance.) And, you will not be asked to supply proof of insurability at the time of transformation. As an example, in case you get a $100,000 term life insurance coverage, you may 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 before the term period ends, or after transform the $50,000 term coverage to permanent life insurance, based upon your needs. The premium you purchase the permanent life insurance coverage will ordinarily be based on your age at that time of conversion (attained age), however in a few circumstances it may be based on your age once the initial policy was purchased (original age). Ask your insurance agent for details. continued