Although many consumers appreciate the benefits of whole life insurance many will start out with term policies because of their lower costs. Later in life they may wish they had taken out permanent coverage but may feel it is too late and too expensive to start again from scratch. A convertible term life insurance policy may be an alternative solution worth looking at.
How Does a Convertible Term Life Insurance Policy Work?
Basically these policies will work like standard term products. The policyholder will be given life insurance for a specified number of years until the close date. But, unlike standard policies, a convertible product adds some flexibility to the mix.
So, for example, the policyholder may be given the option to change their insurance to a different type (such as a whole life product) if the company offers this as a product. Here, they can simply ask to have their term coverage converted to permanent if they wish to make a change.