Converting Your Term Insurance to Permanent Insurance

Vince: Say that I have term insurance and my term insurance is going to expire. Should I get another term policy? Should I get a whole life policy? What makes the most sense?

Brenda: It still depends on what you want to protect.

Vince: Okay.

Brenda: If your term policy is coming to an end and you still have large expenses or bills that need to be protected, term could still be the right answer for you. If you have reached a point in your life where maybe it’s just final expenses, you may want to consider a small whole life.

Vince: Okay.

Brenda: Because for those same burial final expense sort of things and you could accomplish that from your term policy by converting a piece to whole life.

Vince: And what do you mean by converting a piece to whole life?

Brenda: Literally taking a piece of your term policy and changing it into a whole life policy.

Vince: So I still have a term policy and I still have a whole life policy?

Brenda: You could keep the balance of your term in place to the end of the term. But you’ve put this whole life in place that will be there when the terms goes away. It doesn’t require any underwriting. There is no medical questions.

Vince: Hum.

Brenda: One of my favorites to be able to explain to people.