Four tips on what to do when you outlive your term life insurance policy
Buying life insurance is a difficult decision, and no one wants to think about their eventual passing, but what is one to do if they outlive their term life insurance policy?
- If you are approaching the expiration of your term life policy, you can convert it to a permanent policy, such as a whole life or universal life policy. The premium may be higher, but the protection of a permanent policy is valuable and you may be able to skip some of the medical exams.
- You can buy a new term life policy. This will not include the previous policy, and thus you’ll be starting over from scratch, but this option will offer you a lower monthly premium than converting your previous policy. That said, it may be that your needs are not the same as when you first bought your policy, which can affect the price of your premiums.
- If your needs are not the same as when you bought your initial policy it might also be beneficial to buy a new whole life or universal life policy. The premiums will still be higher than buying a new term life policy for the same coverage, but this will be guaranteed to last and grow for your entire lifetime.
- For some, the best option may be to buy a new whole life or universal plan that upgrades their previous plan. Many choose term life policies for financial reasons, and years later the same individual may be able to afford a much better plan that will provide their loved ones with more than just security. For those who have done well financially, buying (or upgrading to) a better policy that is guaranteed to last a lifetime could be the best choice.
When buying life insurance it all comes down to what you can afford, and what you need. Some are just looking to cover their funeral and pay their debts, others may want to send their children or grandchildren to college or leave their spouse enough money to live comfortably once they are gone. It is up to you to decide what kind of policy is best for you and your family.
For more information about obtaining a new life insurance plan or upgrading an existing one, talk to your Yetter Insurance Agent. We’ll help you choose the right plan that fits your needs. Contact Yetter Insurance today at our Milford office. Visit www.yetterins.com or call 570-296-8329.