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Converting Term to Whole Life

Explore How to Convert Your Life Insurance Policy Today

Converting your term policy to whole life insurance offers lifelong coverage and builds cash value over time. Unlike term policies, whole life insurance never expires, providing continuous protection for your loved ones. We can help you assess if this option fits your needs and ensures you get the right coverage for your future.

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Many term life insurance policies come with a built-in conversion rider, enabling an easy switch to whole life insurance. However, this option is only available during a specific conversion period, which usually begins 2 to 5 years after purchasing your policy and ends either at the end of the term or when you reach a certain age. The exact conversion period can vary depending on your insurance provider.

Features and Benefits

Skipping the Medical Exam

Since you already completed a medical exam for your existing term policy, a medical exam is typically not required when converting, and you usually won’t have to go through the underwriting process again. However, this may vary from policy to policy.

Higher Premiums

Whole life insurance typically costs more than term life insurance, so expect your premiums to increase after conversion.

Limited Permanent Policy Options

While some providers offer a range of permanent policy options for conversion, others may only allow conversion to a whole life policy.

Conversion Deadline

You must convert your term policy within the specified conversion period, which usually begins 2 to 5 years after the policy starts and ends either at the end of the term or when you reach a certain age.

Higher Premiums

Whole life insurance typically costs more than term life insurance, so expect your premiums to increase after conversion.

Limited Permanent Policy Options

While some providers offer a range of permanent policy options for conversion, others may only allow conversion to a whole life policy.

Conversion Deadline

You must convert your term policy within the specified conversion period, which usually begins 2 to 5 years after the policy starts and ends either at the end of the term or when you reach a certain age.

FREQUENTLY ASKED QUESTION

To provide you with the information you need quickly and easily.

  • How Can I Convert Term Life Insurance to Whole Life Insurance?
    Converting a term life insurance policy to a whole life insurance policy is a viable option for those who wish to secure lifelong coverage. This process, known as a term-to-whole life conversion, typically allows you to switch your policy without undergoing a medical exam. This is beneficial if your health has declined since you first purchased the term policy, as it ensures you can lock in lifetime coverage without the risk of being denied due to health issues. The conversion process generally involves notifying your insurance company of your intent and selecting a whole life policy that suits your needs.
  • Why Should I Consider Converting My Term Life Policy to Whole Life Insurance?
    You might consider converting your term life policy to whole life insurance if you want lifelong coverage, want to build cash value, or if your financial needs have evolved since purchasing the term policy. Whole life insurance provides permanent coverage, along with a savings component that grows over time, which can be used for various financial goals, including retirement planning and estate management.
  • When Is the Best Time to Convert Term Life Insurance to Whole Life Insurance?
    The best time to convert your term life insurance to whole life insurance is usually before your term policy expires or when your life circumstances change significantly. Factors such as a new addition to the family, a significant increase in income, or a desire for estate planning may prompt the conversion. It’s essential to check if your term policy has a conversion option and understand any deadlines or restrictions involved.
  • What Are the Costs Associated with Converting Term Life to Whole Life Insurance?
    Converting a term life policy to a whole life policy generally involves higher premiums because whole life insurance offers lifelong coverage and includes a cash value component. While the cost will increase, the benefit of having permanent coverage and the potential for cash accumulation may outweigh the additional expense, especially if your financial priorities have shifted.
  • Do I Need a Medical Exam to Convert My Term Life Policy to Whole Life Insurance?
    In most cases, converting your term life insurance to whole life insurance does not require a medical exam. This can be particularly advantageous if your health has declined since you initially purchased the term policy, as it allows you to obtain permanent coverage without the risk of being denied based on your current health status.
  • What Are the Benefits of Whole Life Insurance After Converting from Term Life?
    Once you convert from term life insurance to whole life insurance, you gain the benefit of lifelong coverage, fixed premiums, and the ability to build cash value over time. This cash value can be accessed through loans or withdrawals and can serve as a financial resource for retirement, emergencies, or other financial needs. Additionally, whole life insurance provides peace of mind by ensuring your loved ones are protected no matter when you pass away.

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NGA Financial is a licensed insurance service in the state of Florida (FL license # L127569). Your privacy is important to us. We collect and use your information as described in our Privacy Policy. Products and their features may not be available in all states. To help avoid requiring a medical exam, our application includes certain health and lifestyle questions.2024© NGA Financial. Alright Reserved