Term life insurance can be a great benefit for your family if you pass away within the time period designated in the plan. However, if you are fortunate enough to see that time frame come to an end, it is wise to change to a whole life insurance plan. This way, your family will be covered financially, no matter how long you live. There are other financial benefits to choosing a whole life insurance plan as well.
Can I convert my term life insurance to whole life insurance? Use the guide below to find out how to make changes to your life insurance and if it’s the right move for you.
Which is Better: Term Life or Whole Life Insurance?
Insurance decisions can be complicated, and it’s not always easy to decide what’s best. Which is better: term life or whole life insurance? Ultimately, your individual circumstances will determine which type of life insurance is best for you. Even a life insurance policy with a very small payout is better than no coverage at all, and there is never a bad time to start planning for the future.
Term life insurance can be a great option when you are younger. It may be easier to pass the medical exam, it may be more affordable, and you have plenty of time to change coverage later in life.
Whole life insurance generally has higher monthly premiums, and may be harder to fit into your budget if you are just starting out in your career. However, there are other financial benefits, and even if you start out with a term life insurance plan, it is possible to convert to whole life insurance later.
Benefits of Whole Life Insurance
In addition to having a policy that never expires during your lifetime, whole life insurance is a key part of your financial plan. Whether you want to ensure your dependents are financially stable or leave a legacy behind, whole life insurance can help you.
When making payments for a term life insurance plan, it serves only one purpose. With whole, or permanent, life insurance you have options. Part of your monthly payments will be put in a tax-deferred account which will grow over time. You can borrow from this amount, sort of like getting a loan from yourself, or you can cash it out and choose not to use it as life insurance. This can benefit you if you have had the policy for many years and it has had plenty of time to grow.
You may experience a decline in your health as you grow older, making premiums higher and insurance more difficult to acquire. You can convert all, or only a portion, of your term life insurance to a whole life insurance plan whenever it is the right time for you.
If you have a family member, such as a child or sibling with special needs, who depends on you financially, you can ensure they will be taken care of after you are gone.
How to Convert Term Life Insurance to Whole Life Insurance
When signing up for term life insurance, make sure you choose a plan that is convertible. Take note of the time period in which this is acceptable so you don’t wait too long and miss your opportunity. This will make it much easier to make changes and you will most likely not need to take another physical exam.
Talk to your insurance agent about changes you may want to make in the future. Ask lots of questions up front and gather all the information you need to correctly change your policy when the time comes.
Pacific Wealth Solutions
It’s time to start prepping for your family’s future. Request a free quote from Pacific Wealth Solutions to begin the simple, no-medical-exam-required application process!
Term Life Application Steps
Step 1: Apply Now
We will take you to the Coverpath term life page.
Fill out the “Get a Quote” questionnaire and click, “Apply Now.”
Step 2: Create an account.
Manage your policies and investment accounts.
Get help from MassMutual directly, or you can always contact PWS via live chat or email on our website.
Set preferences and notifications. Get helpful financial resources.
Step 3: Submit the application.
Sign in to your account and finish your application.
Submit the application and wait for approval.
Permanent Life Application Steps
Step 1: Apply Now
Navigate to the Permanent Life Insurance page.
Click “Apply Now” and fill out the questionnaire.
After the questionnaire is filled out, we will send you a customized link to continue the process. That’s it!
Start planning for your future and apply for permanent life insurance.