My life insurance, which is 100K of term is coming to an en

by davidg » Wed Dec 19, 2007 02:44 am
Posts: 2
Joined: 19 Dec 2007

Help on making life insurance decision!

Total Comments: 14

Posted: Wed Dec 19, 2007 07:08 am Post Subject:

Once your term policy ends, you can either purchase another policy with a different term or can go without coverage. In the second case, your family will not receive any further compensation at the unfortunate event of your untimely death.

On the other hand, purchasing another policy may shoot-up the premium rates for you, because you have grown old by the time the term policy ends. Therefore, a new scale of premium rate will apply.

You need to weigh both the consequences and decide accordingly. This is my small try to show you both the sides of the story. Hope you liked it :)

Posted: Wed Dec 19, 2007 07:23 am Post Subject:

Hi there!

I could empathize your situation but I'm quite sure that the expiration of your term doesn't signify the end of your coverage. It would be possible for you to enhance you coverage for an extended term (& for this you don't need to re-qualify or forward your proof of health). This would save you another health test. But at the same time you need to note that the premium rate of such policies are bound to get affected each time you gotta renew them, due to your increased age at the end of each term. However you need to shop carefully as you need to compare the premium rates of such a policies during the initial years & see whether it is too high! In that case it would be better for you to buy a supplement policy or a brand new term life policy. Hope you got what I meant to convey! Thanks, Gorgeous_apegal

Posted: Wed Dec 19, 2007 09:39 am Post Subject: Why don't you convert?

Hey!
Why don't you convert your term policy to a permanent one ? Well, this is very much possible & you may need to show an age proof & trudge through the waiting period before you are permitted to shift. But remember, that you'd obviously need to pay more towards your policy premiums once your into a perm. policy (even though the benefits would remain the same). But yeah, there is another benefit coming with it - your premiums would remain even throughout. Got it ? Wishing you the very best!
Roger S

Posted: Wed Dec 19, 2007 09:42 am Post Subject: Your insurance cake!

But yeah, there is another benefit coming with it - your premiums would remain even throughout.



What about the cash value on it!
Believe me- you'd have your cake & eat it too!

Regards,
Sasha

Posted: Wed Dec 19, 2007 10:40 am Post Subject: Read all things carefully..

Why don't you convert your term policy to a permanent one ?


Well, that doesn't necessarily mean that you'd need to convert the entire policy to a permanent policy (if conversion is at all allowed in your case). But yeah, before deciding about all these you'd certainly need to go through the policy clauses & the limitations carefully.
Regards, Fatman

Posted: Wed Dec 19, 2007 07:36 pm Post Subject:

I believe Roger S gave the best advice when he advised to look into converting your policy into a permanent policy. Thats probably the best way to go. Another option is to just shop wth other companies and see what kind of rates you can get on a whole life and universal life policies. A lot depends on your age, height, weight, health status, and whether you smoke or not.

Posted: Wed Dec 19, 2007 10:52 pm Post Subject:

Good job everyone! There are a number of great suggestions here.
I'm just glad davidg wasn't writing because his life insurance policy was going to end against his will.

Davidg, if you'd like a little help with this, feel free to send me a message.
I can absolutely guarantee you that you'll not be sent in an unsafe direction.

Merry Christmas,
Mark

Posted: Thu Dec 20, 2007 05:27 am Post Subject:

Hi.OP, good question.

There's been some good responses to your question, and I'd like to clarify just a couple of things.

First of, not all term policies are either renewable or convertible. You'll have to check your policy to see if it's either. If it's renewable, you'll be able to renew without any proof of health, but the other posters are right about the points they raised.

Term insurance is based on your "attained age" for rating premiums. Depending on how long the term contract runs for (1 yr, 5, 10, 20 years, etc.), the price will be affected by the length of the policy as well as your age and other rating factors.

Converting to permanent insurance can be a wise decision, assuming the policy allows it, depending on a number of factors. Your agent (if he/she is any good) can easily explain the pros and cons of converting to permanent insurance. Normally, you can convert up to the amount of coverage you were carrying on the term policy, and there are no proof of health requirements. Typically, get ready for some sticker shock if you elect to convert the entire face amount.

But, if you do convert the policy to perm, your premiums will remain the same throughout the life of the contract, and won't be affected by age or any other factors assuming you keep paying the premiums.

Hope this helps. Look at your contract and find the language that addresses these issues. It should be fairly straightforward, and again- your agent should be able to help.

Good luck!

InsTeacher 8)

Posted: Sat Jan 05, 2008 07:34 pm Post Subject: Help on Making a Life Insurance Decision

If your term life insurance policy is ending you want to consider a few things before it expires:

1. Find out if you can renew the policy and at what rates.

2. Find out if you can convert the policy to whole life insurance and what it would cost, if you want permanent life insurance.

3. Find out if you need to take a physical exam to renew the policy, or to purchase a new term life insurance policy.

If your policy has expired, you may need to apply for a new term life insurance policy, if you still feel you need coverage.

The rates charged will be higher, based on your current age and health. It may be a good idea to compare term life insurance quotes before choosing a plan. That way you can find out the premium before speaking with an agent to pursue the application for coverage.

Link removed - Lakemen

Posted: Mon Mar 31, 2008 06:12 pm Post Subject:

Well, you need to figure out how many more years you need the insurance. If less than 10, I wouldn't bother with whole life. At your age ,your rate will obviously be higher than term. Believe me, the cash value accrued during that time will not be much . And to get it out , you'll need to borrow against it or surrender your policy. Even at your age, I can guarantee you'll be paying more for whole than term. Just get a term life and use the difference in premium to invest on your own. Life insurance is for your love ones, and not for you.

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