Should I convert my term life policy to permanent (whole life) life insurance?
Most term life insurance policies allow you to convert the term policy to a permanent life insurance policy without a health examination. Is this something I need to do?
Some reasons why it may be a good idea for you are:
- Your term policy is about to expire, and you want to keep coverage past the term
- You want to extend your life insurance coverage but term has become too expensive because of your age or is no longer available
- You are setting up an estate or are concerned about estate taxes
- You are setting up a trust in your will
- You need a non-taxable investment option
Converting term life to whole life insurance can be an excellent way to continue your life insurance coverage and build cash value that you can borrow if needed.
There are many ways to structure these type of policies so be sure to work with your attorney, insurance professional, and financial planner.