Agent Owner, Gilmore Insurance Services, Marysville, Washington State
How do you convert a term policy to whole life? The best way is to contact your agent or if you don't have one, the company directly and they will assign you one. Usually a conversion is nothing more than filling out a single page. For a lot of people this is great deal because you no longer have to prove your health. So if your health is bad conversion is a great idea.
That is a great question! Your policy should have a clause that outlines the details of your conversion process, but here's what you want to do. If you purchased the policy through an agent, contact them and let them know what you are wanting to do. They will then tell you if your policy is convertible, and if so what that conversion will buy for you in a whole life policy.
You should be aware that your coverage amount will be much lower, and if you want to keep the face value that your premiums will become much more expensive. Whole life policies are more expensive than term policies are because of their cash accumulation features, and the higher risk to the insurer - they don't have to pay out on many term policies, but have to pay out on nearly every whole life one.
Decide where your budget allows, and what minimum coverage you want to keep, and have your agent work with you on getting as close to those numbers as possible.I think the conversion is a great idea. If you have questions, please don't hesitate to contact me, okay? Thanks for asking!
Most term life insurance policies have a convertible provision to permanent life insurance or in most cases whole life. This is a great feature for those who now have health issues which could cause them not to get a good rate on life insurance or even uninsurable all together. I would contact your agent. It may make sense to convert all or part of your term to perm. If you are still in good health it may make better sense to purchase whole life new and replace the old term policy. In most cases convertible term is not the most affordable option if health is not an issue. Your term life carrier is assuming risk with conversion and that does come at a price.
Just be sure to weigh all of your options before converting. Good luck!
Converting Term to Permanent Insurance requires several things:
1) Your policy must offer that provision;
2) You must take advantage of that provision in the time frame allotted (each policy has its own deadline to convert - such as within x number of years or by a certain age);
3) You can only convert up to the face amount of your current policy, and there will be a minimum face amount, as well;
4) You must convert to the type of policies offered for conversion by your insurance company (some allow you to convert to any of their permanent products, while others may offer a very narrow range of policy choices to convert to); and
5) You may or may not be able to keep the remainder of your coverage in Term insurance.
If your agent is no longer around, contact an agent you trust and give them permission to contact your insurer and develop some options for you. By understanding minimum face amounts, premium "banding", and other features offered by that carrier, a knowledgeable agent can get you the most bang for your buck.
E.g. If you are in good health or still want Term insurance, you may be better off getting a new policy. If you are in poor health, you may be able to save money by converting to a policy guaranteed not to lapse for a limited number of years, rather than paying for a lifetime guarantee. Conversions are easy to execute but can be complicated to decide, so having a consumer driven agent in your corner can really help.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Such a conversion may be possible so long as your term policy includes such a provision. Talk to your Insurance Professional about your contract and whatever options and benmefits may be included in it. In many cases, you may find that you can convert all or a portion of your term coverage into whole life or other form of permanent life insurance. In many cases, this conversion benefit also states that you can do so without having to provide any proof of "insurability", in other words, without any physical exam or reports by your Doctor being needed. Understand that if available, the conversion would take place at your current age and the rates applied accordingly so the younger you are when you decide to take advantage of this option, the better off financially you will be.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Here is a simple 2-step formula to follow:
1. Get prequalified for coverage with another carrier so you can compare prices. This way you will confirm that the premium you will be charged for conversion is the best available.
2. Depending on the results of that analysis, either apply with the new company or simply fill out a conversion application with the term carrier.
There you go. Either way, you will know you have made the right decision :)
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
First, "converting" a Term policy to Whole Life isn't what it sounds like. In most cases there is a time limit by which you must "convert" otherwise you loose the one benefit of this kind of conversion. Some, (very few), providers will actually credit a small amount of what has been paid into the Term policy to the new Whole Life policy as long as you're converting with the same provider.
When "converting" from Term to Whole Life within the allotted time frame, the one benefit that is being "converted" to the new policy is the "classification" of the insured. In other words if the classification was "Preferred" or "Standard", (whatever the classification was), with the Term policy, that same classification will be given to the new policy without having to have another medical exam or underwriting. But the premium for the new policy will be adjusted to the attained age of the insured as well as the benefit amount.
So how do you go about converting your Term to a Whole Life? Contact your agent or the provider, let them know that's what you would like to do. You may be able to or you may not be able to. In either case you most likely will loose any money paid into the Term policy.
Regional Marketing Director, Capital Choice Financial Group,
First of all, determine if you need to carry any protection at your stage in life. Do you any debt, mortgage, or are the kids out of the house. Also, look at your liquid assets. If all is well in those catagories then you don't need protection at all because you're self insured. But, if after your assessment you still see you need some protection look at extending with more term insurance in lieu of conversion to cash value. It is much more cost efficient. But, if you must convert, then if your present policy is qualified to convert then just let them know that you want to do that and they will proceed. In the case that your present company doesn't permit conversion you will have to get another policy.
Manager, Marindependent Insurance Services LLC, California
First off, your term life insurance policy must have a provision in it that allows for it.
Second I would suggest that you reach out to the agent that sold you the policy to discuss the matter with them. If your insurance agent is no longer doing business you can reach out direct to the insurance company, however this is not the preferred method.
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You should be aware that your coverage amount will be much lower, and if you want to keep the face value that your premiums will become much more expensive. Whole life policies are more expensive than term policies are because of their cash accumulation features, and the higher risk to the insurer - they don't have to pay out on many term policies, but have to pay out on nearly every whole life one.
Decide where your budget allows, and what minimum coverage you want to keep, and have your agent work with you on getting as close to those numbers as possible.I think the conversion is a great idea. If you have questions, please don't hesitate to contact me, okay? Thanks for asking!
Just be sure to weigh all of your options before converting. Good luck!
1) Your policy must offer that provision;
2) You must take advantage of that provision in the time frame allotted (each policy has its own deadline to convert - such as within x number of years or by a certain age);
3) You can only convert up to the face amount of your current policy, and there will be a minimum face amount, as well;
4) You must convert to the type of policies offered for conversion by your insurance company (some allow you to convert to any of their permanent products, while others may offer a very narrow range of policy choices to convert to); and
5) You may or may not be able to keep the remainder of your coverage in Term insurance.
If your agent is no longer around, contact an agent you trust and give them permission to contact your insurer and develop some options for you. By understanding minimum face amounts, premium "banding", and other features offered by that carrier, a knowledgeable agent can get you the most bang for your buck.
E.g. If you are in good health or still want Term insurance, you may be better off getting a new policy. If you are in poor health, you may be able to save money by converting to a policy guaranteed not to lapse for a limited number of years, rather than paying for a lifetime guarantee. Conversions are easy to execute but can be complicated to decide, so having a consumer driven agent in your corner can really help.
1. Get prequalified for coverage with another carrier so you can compare prices. This way you will confirm that the premium you will be charged for conversion is the best available.
2. Depending on the results of that analysis, either apply with the new company or simply fill out a conversion application with the term carrier.
There you go. Either way, you will know you have made the right decision :)
When "converting" from Term to Whole Life within the allotted time frame, the one benefit that is being "converted" to the new policy is the "classification" of the insured. In other words if the classification was "Preferred" or "Standard", (whatever the classification was), with the Term policy, that same classification will be given to the new policy without having to have another medical exam or underwriting. But the premium for the new policy will be adjusted to the attained age of the insured as well as the benefit amount.
So how do you go about converting your Term to a Whole Life? Contact your agent or the provider, let them know that's what you would like to do. You may be able to or you may not be able to. In either case you most likely will loose any money paid into the Term policy.
Second I would suggest that you reach out to the agent that sold you the policy to discuss the matter with them. If your insurance agent is no longer doing business you can reach out direct to the insurance company, however this is not the preferred method.
Best of Luck to you in your conversion.