convertible life insurance

A convertible life insurance policy grants the policy holder the right to convert their policy from term life insurance into permanent life insurance. The basic distinction between the tow is given by their name - a term insurance lasts from 1 to 30 years, while a permanent lasts indefinitely - and a permanent life insurance also places some of the money into investments. With a convertible life insurance, the policyholder has the option to switch, adding the stability of a permanent policy and investments. The worst possible thing that can happen is for a term life insurance to expire, at which point the money placed into it dies with the policy. So when circumstances change and a permanent life insurance seems more feasible, one insurance policy will simply convert into the other, which would be much harder to do had there not been a convertible policy.

Fast Facts

most term life insurances are actually convertible
a convertible life option wont require the policyholder to be rechecked for health

convertible life insurance - Financial Planners, Articles and Q&A

No results for "convertible life insurance"

Search Results for "convert life insurance"

Articles

Results 1-5 of 55 for "convert life insurance"

Equity Indexed Life Insurance

Equity Indexed Universal Life Insurance, also referred to as EIUL, can be defined as permanent life insurance ...
- Site: financialplannernetwork.com
- 2 of 2 user(s) found this useful
Estate Planning

Are you in need of professional advice regarding estate planning?...
- Site: financialplannernetwork.com
How to Buy a Home

The purchase of a house is probably the single largest financial investment that a person undertakes in their ...
- Site: financialplannernetwork.com
- 2 of 3 user(s) found this useful
Dual-Income Households

Money is the number one problem couples fight about. It's often the spark that ignites bickering about ambitio...
- Site: financialplannernetwork.com
Financial Glossary - A
- Site: financialplannernetwork.com