Consumers may benefit from term life insurance conversion
Most Americans understand the functions of a term life insurance policy, but many may not know how it can save them money when they convert their policy to a plan that provides coverage for a longer period of time.
In addition to the value of term life’s renewability provision, these types of policies may also contain the option for you to exchange your term life policy for a permanent plan.
Not only do you get more permanent protection but you can also do it without any evidence of insurability, explains Edward Graves, author of “McGill’s Life Insurance.”
As with everything in life, there are two sides to every story.
Edward E. Graves, author of “McGill’s Life Insurance” says that while some argue that term life insurance is great for those who need temporary coverage or have a lack of funds to buy permanent insurance, others are quick to point out its faults.
One of its great strengths in being temporary can also be its weakness.
As an employee, you might feel that employer-provided group life insurance covers all your family’s death benefit needs. It’s tempting to rely solely on group coverage because you may feel there’s no need to spend the money on extra coverage.
This type of thinking can be dangerous beyond the old phrase of “it’s never a good idea to put all your eggs in one basket.”
If you happen to have a life insurance policy through the government’s Veterans Group Life Insurance (VGLI) program, there are a number of coverage options to take into consideration.