Life Insurance

Term life insurance has an expiration date so there are things to consider as that date nears and you find yourself still needing life insurance coverage. Some options are covered in this report.

Term Life Insurance: 3 Options When Your Policy Is Getting Ready to Expire

Unlike permanent* life insurance, term life is considered temporary coverage. And depending on the period of the term policy you bought, your policy duration might be anywhere from a single, five, 10 or even 30 years. However, what happens afterward?

If your term life insurance is coming up close to the final year and you still need to have coverage in force, there are a few options that might be available for you:

Buy a new life insurance coverage

You might choose to compare rates from various companies and consider replacing your policy with a brand new one. This may mean a new program and probably a life insurance medical examination. Discgolfdir.com For example, if the 20-year term policy which you bought when you're 30 expired, your new rates will be based on your present age of 50. In addition, certain medical conditions may disqualify you from obtaining a new policy. So if you are still in good health, look around and consider applying for a new term or possibly a permanent policy.

Combine policy types

If owning a permanent life insurance policy that earns cash value appeals to you but will not fit in your budget, consider a combination of term and permanent life insurance plan. For example, if you want $500,000 of coverage, you might want to purchase $250,000 of term and $250,000 of worldwide life (or any other mix). This way, you've got your needs covered while securing a permanent policy. Ask your agent about running various quotation combinations to determine what works for you.

Convert your coverage

Check with your agent about your policy's conversion options. Based on your type of coverage, you might have the ability to convert all or some of your policy to a permanent policy without needing to prove your insurability (commonly known as a guaranteed convertibility provision). Some term policies allow you to do so just at certain dates or intervals, so check your coverage. These are just a couple of options which you might have available when your term life coverage expires. Remember, when your policy expires or you quit paying your necessary premiums, your coverage ends. Way Wardsons The following are factors before you create that initial term life buy:

• Try to approximate the duration of coverage (term) that you may need, and attempt to get the longest term you can manage when initially securing a new policy.

• Ask your broker about options for a renewable term policy, in addition to policy riders which have allowing you to buy additional insurance at a future date regardless of your health, or converting some of your term into a permanent policy.

• Consider purchasing a permanent life insurance policy for example universal or whole life which won't ever expire so long as premiums are paid.

Don't wait until your term life insurance coverage has died to review your choices. If your term coverage will be expiring soon, talk with your agent choices that may be offered to you.