You did a great thing in your early adulthood– you bought a life insurance policy. However, you bought a term policy, and you’re going to outlive it. This will leave the people that you’re going to leave behind one day unprotected. Below are a few options that are available to look at for when your term policy expires.
Renew it
Some life insurance providers give you an option to renew your term policy when it expires. This can be a seamless transition, letting you extend the benefits without restarting the whole process of underwriting or getting medical exams. However, since you’re considerably older than when you first purchased the plan, the premium may jump considerably.
Make a new term policy
Some people find that getting a new term life insurance policy gives you the ability to look at options that you didn’t have before. Starting anew gives you the chance to use your experience to reassess your needs when purchasing a new policy. This can include reconsidering the death benefit amount, term length, and your overall ability to pay the premiums. Because you’re older than when you first bought your policy, you’re going to find that your premiums are going to be higher than they were for the same benefit length. On the other hand, your living situation may change, so a higher premium may be more affordable than it used to be.
Buy whole life insurance
You may find that the entire process of buying a new plan is overwhelming, and you’d rather not do it again if your term policy runs out. Buying a whole life insurance plan is a great way to ensure that the people that you love will be protected. When purchasing a whole life insurance plan, as long as the premiums are paid, the policies will be covered.
Convert term to a permanent policy
Converting your term policy to a permanent one may help if your living situation changed during your coverage period. However, not all policies allow conversions, so contact your provider to confirm if it’s available without purchasing new coverage. Permanent policies offer lifelong protection, ensuring your beneficiaries receive benefits without term limits. Keep in mind, though, that permanent policy premiums cost more than term plans.
When your term life insurance policy runs out, it can be a scary thing. Considering all of the options available is the best way to ensure that you’re doing the best you can.