Protection Planning Common Questions |
Can I convert all or part of my term life insurance to permanent life insurance?
Answer:
Yes, as long as you've purchased a convertible term life insurance policy. Keep in mind that convertible term life insurance usually has a conversion deadline, which is the date by which you must convert. And when you do convert your policy, you can expect your premiums to increase as you'll have permanent and not term insurance. The new premiums will be based on your age; this may be either your current age or the age at the time you took out the policy (an original date conversion). If you convert to your original age, you'll have to pay all back premiums and interest when you convert. The good news is that you won't have to prove your insurability (e.g., through medical exams) at the time of conversion.
Related Content
Life Insurance And Estate Planning Questions
- Why do I need life insurance?
- Do I need life insurance if I'm single?
- Is it less expensive to buy life insurance while I'm young?
- What is term life insurance?
- What is whole life insurance?
- What is group life insurance?
- Can I convert all or part of my term life insurance to permanent life insurance?
- Are withdrawals from a cash value life insurance policy ever tax free?
- Can an insurance company require me to submit to a medical exam before granting me a life insurance policy?
- When I die, is my beneficiary required to take a lump-sum payment of my life insurance death benefit?
- Will I be taxed on the growth of the cash value of my life insurance? What if my policy pays dividends?
- Will my beneficiaries have to pay taxes on the proceeds of my life insurance policy?
Life Insurance Articles
Estate Planning Calculators
Products:
GE 37222 (03/07)
