Converting from term to permanent policy Author:    Posted under: Life InsuranceLife Insurance Types


The debate on life insurance between term and permanent policy has been an on-going battle. “Which is better?” is the consumers’ most asked question when it comes to policy life insurance. It is important to understand what life insurance means and do we really need to purchase it?

Perform a mini-need study. Take the time to find out your ideal policy, it vary on individual needs.  If you’re young, insurance is the last thing you’ll think of purchasing, but how about helping your parents.  If you’re married, you think of your spouse and children if ever you go back to God’s loving arm.  How about when you die, funeral cost is very expensive and you don’t want to leave your family savings at stake. If you want to have pension, then figure how insurance will help you. To term or to perm.

Bankrate.com explains the coverage of each policy. Term insurance provides coverage for a predetermined period of time. Permanent life insurance offers coverage for an open-ended period of time, as long you continue to pay the premiums. The premiums are higher than those of term insurance, but these products also accumulate a cash value that the policyholder can borrow against or receive upon surrendering the policy.

Let’s say you already owned Term Insurance and realized that there’s a need to convert it to Permanent Insurance. Making the conversion from Term to Permanent contract may be vital to your general financial program depending on your objectives. Here are some suggestions for converting a term policy.

Contact your insurance agent from whom you bought the term policy and have consultation or call the insurance company to locate the agent for you. Go over the convertibility feature that the company offers under your term policy. Settle on which plan will give you with the best benefits at the cost you can afford. If you know which plan to go through then have  the conversion paperwork, read it thoroughly and make sure to have a copy before signing. Policy contract is not like a magazine that can be seen anywhere in the house, it is an important document that needs to be place in a safe position.

Added security and protection for your family is usually the main reason why Term holders convert it into Permanent. If you are one of those who are taking the next step, contact your agent now and begin the conversion.
* http://www.bankrate.com/calculators/insurance/type-insurance.aspx#ixzz17UfZ8Bhd

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