I’m 50 with a term life policy that expires when I’m 60. Should I convert to whole life, and if so, when?

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    The term "convert" usually means an internal replacement to a permanent policy. While many carriers do not offer a whole life policy, you will be able to convert into a universal policy with certain guarantees depending upon the conditions of your term contract. That said, your decision should be based on your need, financial situation and other factors.

    If conversion makes sense for you, I would do it sooner than later, especially if your current carrier allows conversion into any of their current permanent products. If not, and your health is acceptable, consider purchase of a permanent product from another company.

    This and other questions about conversion should be asked to your current agent and discussed fully with your proposed beneficiaries to make sure of the best decision on your part.
    Answered on October 4, 2014
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  2. 1045 POINTS
    Karl Renwanz
    Renwanz Insurance & Financial Solutions, Carlsbad, CA
    If your current term policy has the option to "convert" to a permanent life insurance policy, the advantage of converting now is that you can get a lower premium than you could at age 60. Either way, you should not have to re-qualify for coverage under your current policy conversion.

    Insurance companies often have limitations as to the type of policy you can convert to and you need to find out exactly what type of policy they would allow you to convert to and make sure it fits your needs. It is a good idea to check out other offerings from other insurance companies as well - you never know when a fresh start could get you a better "fit" for moving forward with permanent life insurance. Of course, you would have to qualify for a new policy with another company, but it costs you nothing to check it out.
    Answered on October 6, 2014
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  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! I think it is great that you are on top of your insurance situation. I'd advise you to call your agent, and ask about the ability to convert your policy. Make sure that your policy will allow it; and if so, how much coverage it would give you. Then look at whether that is enough coverage. If not, then you will want to think about adding some additional coverage, either in another term policy, or some additional whole life, depending upon your budget. I do not recommend by any stretch to renew it, as it will get very expensive very quickly. If you need help, please feel free to contact me, okay - I'm happy to help. Thank you for asking!
    Answered on October 6, 2014
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  4. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    If the only conversion option your policy offers is Whole Life, the rate is probably going to be quite a bit higher than if you take out a new, no lapse, Universal Life policy. However, when you convert Term Life, you are rated the same on your Whole Life that you were rated on your Term policy. So if your health has declined, you may be getting a good deal by converting. If it has not declined, I personally would check out a new policy to see how much you can save.

    As to when to convert, it depends on several factors.
    1. HOW MUCH you want to convert. If you want to convert it all, it may be a good idea to do it now, while rates are lower. They will go up quite a bit over the next 10 years.
    2. YOUR HEALTH. If you have very poor health, you may just want to pay those low Term rates another 10 years. If you have excellent health, it might be a good time to convert or look at what else you can get in a permanent policy.
    3. WILL YOU NEED LIFE INSURANCE after age 60? By the time you are 60 you should have a good idea of whether you will need that much coverage. You have some time to get a feel for how your retirement is going to pan out before you make this big decision. You cannot reverse it and go back to Term, once you have converted your policy.

    Please feel free to contact me to help you ascertain what prices are out there for you, or help you figure out what direction to go. Best wishes.
    Answered on October 6, 2014
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  5. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    If you are sure that you will die prior to your age 60, don’t do anything. If you suspect you might live past age 60 you will need to ask yourself a few questions. Will you have needs that will last the balance of your life? These would probably be money to cover final expenses and a cushion to offset any lost income that would result if you died and your spouse would have a reduction in benefit. If you have a permanent need, you need a permanent policy.
    Answered on October 6, 2014
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  6. 113 POINTS
    Brandi Jo Newman
    Founder, BrandiJoNewman.com, Texas
    Yes.

    Yesterday.

    Call me. I can get you a policy that will give you cash in retirement tax free. Also increase your retirement income by at least 30%.

    Whole Life policies allow you to spend everything else you've saved for retirement and then give you protection against inflation and volatility.
    Answered on October 14, 2014
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  7. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    Hahah! I like Brandi Jo's answer above best! But the answer to your question, "Should I convert to Whole Life and When?" depends on a number of things. Will you be retiring at 60 or are you retired now? How much liquidity do you have now? Will you have a need for insurance when you turn 60? So the answer to your question depends on your goals and needs for insurance. You should talk with an insurance adviser. Personally I think you should've started with Whole Life, but that not being the case if you are going to convert your term policy you should do it immediately.
    Answered on August 28, 2015
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