5 Options When Your Term Life Insurance Policy Expires

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Options When Your Term Life Insurance ExpiresMany consumers aren’t aware of all their options when their term life insurance expires...or is about to expire.

When you’re approaching the end of your term life insurance policy , here are your choices:

1. Continue your current policy
2. Conversion to a permanent policy
3. Life settlement
4. Purchase a new policy
5. Go without coverage

1. Continue your current policy
This is the option you want to avoid. Your life insurance rates at the end of your term will skyrocket. The rates are typically so expensive you can’t afford them. Even if you can afford them, the rates will go up every year (unless you have a term/ul hybrid policy).

Contact your life insurance company and ask for an "in force illustration" and you'll see your projected premiums will be pretty rediculous.

2. Conversion to a permanent policy
Depending on the life insurance company and their conversion options, you may be able to convert your policy with no evidence of insurability.  Even if you have serious health issues, you may have the opportunity to convert your term policy to a permanent one.

Every company has different guidelines and products you can convert to, contact us and we'll let you know what your conversion options are.

3. Life Settlement
If you're in poor health or you can't afford your term life insurance policy anymore, you may be able to sell it on the secondary market. If the policy is within the conversion period and your health has declined, we can solicit offers from investors who will essentially buy your policy off you.

Typically you need to be over age 65 and in declining health to explore this option.

4. Purchase A New Policy
If you're still in good health, you can purchase a new life insurance policy. Keep in mind that rates will be a lot more expensive because your older so make sure you speak with an independent life insurance agent who can look at all the options on the market for you.

5. Go Without Coverage
If no one is financially dependent on your income or will be burdened from your untimely passing, then going without coverage makes sense.

If your life insurance is set to expire within the next few years, you should start weighing your options now because your age may limit your future choices.

The best thing to do is contact an independent life insurance advisor. We'll weigh all your options and present them to you...so YOU can make the best decision.
 

About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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