Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
If you have a term life insurance policy and the guarantee period on it is expiring, you have a several options:
1) you can continue to pay premiums as the policy will be annually renewable, however, the premiums will start to go up each year (based on age) by a substantial margin.
2) If the conversion period is still available, you can convert all, or a portion, of the face amount to a permanent policy with new medical underwriting.
3) you can stop paying premiums and let the policy lapse, thus ending your coverage.
4) you can apply for a new policy (can be with the same carrier or a new carrier) to secure a new term or permanent insurance policy.
Please feel free to contact me for help. Thanks very much.
When your term life insurance policy expires, either it just ends, or it can be continued with extremely high rates, and the rates can then go up every year. In essence, the only way most people would keep the policy going at the new annually renewable rates would be if they are seriously ill and cannot get another policy that would pay an immediate death benefit. That's why it is best to have a fund for permanent needs on the side, if you take out a Term policy. Term life insurance is meant for temporary needs, because you never know if you can qualify for a new policy when the term ends.
President, Lane Independent Agency, Southern California
OK. So you bought that term insurance to save money. It was certainly cheaper to start than that whole life you were offered. But now the term has expired. Most companies will allow you to keep your term policy past the expressly stated number of years, but no longer with that fixed premium. The premium will escalate and escalate quickly, kind of like sky rocketing. What to do? Well you could try to get yet another term policy, for another ten or twenty or so years. But if you are no long longer insurable, you are out of luck. That is why whole life would have been a better choice in the long run. Or, if you are lucky, and are still insurable, you can go for either another term policy, or jump to a whole life policy. Remember, premiums on term, even in good health, will only get higher each time you get another policy. If you can, you may want now to jump to that whole life policy you could have gotten for a lot less years earlier. Thank you. GARY LANE.
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1) you can continue to pay premiums as the policy will be annually renewable, however, the premiums will start to go up each year (based on age) by a substantial margin.
2) If the conversion period is still available, you can convert all, or a portion, of the face amount to a permanent policy with new medical underwriting.
3) you can stop paying premiums and let the policy lapse, thus ending your coverage.
4) you can apply for a new policy (can be with the same carrier or a new carrier) to secure a new term or permanent insurance policy.
Please feel free to contact me for help. Thanks very much.