Term Conversion Situations
Hi, my name is Enrique, and I am with Empower Brokerage. Today, I have a quick topic I want to share with you all. I am a life insurance specialist here at Empower Brokerage. I have a background in life insurance as well as banking. For today’s brief topic, I want to talk about term conversion. Even the word conversion sounds a little bit religious. It’s something you have to believe in to use it. Most people are familiar with term coverage. Term coverage is for a set period of time for an individual, hence the name of the coverage.
First Hand Experience in Term Conversion
I recall when I was a young man needing coverage to protect my family. I started a term policy set up to automatically convert to a whole life policy. At that time, I had to be convinced to purchase that type of policy. Being in my late twenties, I didn’t see the value in that type of policy. Then, in my forties, I had that option. In my case, the policy had not been designed correctly. Consequently, I went from a $30 monthly premium up to a $350 monthly premium. Therefore, I didn’t take the conversion because I couldn’t afford it. Within that same time period, I had some health issues, so I was unable to get the cheap coverage I had hoped to get. As a result, I was without insurance and put my family at risk without any coverage. That’s my personal story with term conversion.
Second Hand Experience in Term Conversion
Recently, I got a phone call from an elderly person concerned about their conversion period having expired. Due to age, they knew cost would become astronomical, so we go through the options. Yes, you have to pay more. Luckily, the person is healthy and can get coverage today outside of conversion period. Had the person taken advantage of the conversion privilege, they would’ve been locked into the permanent policy without going through underwriting again. The benefit of switching to the permanent policy lies within the policy lasting the lifetime of the insured. In my case, I wanted additional coverage to take care of my family. In the elderly person’s case, her only concern was final expense. As a result, she required a lower coverage policy than myself. I share knowledge on term conversion because it’s better to be safe than to realize you need to convert once it’s too late.
Life Insurance Questions?
We hope that this information on term conversion is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
Get affordable life insurance quotes by clicking here.
See our other websites: