You’ve done the right thing by securing a term life insurance policy to safeguard your family’s future. However, whether your term spanned a decade or three, you’re now on the cusp of outliving your term life insurance. The end of your term life insurance policy isn’t the end of your options. Yet, the question arises: What’s next? Let’s delve into the options you can consider upon your term life insurance’s expiration.
Renew Your Term Policy
Your current life insurance provider might allow you to renew your existing term life policy. The transition occurs seamlessly in certain instances, extending the same benefits without the need for a new underwriting process or medical examinations. Nonetheless, if you’re older than when you initially procured the policy, the premium may experience a considerable increase.
Opting to renew your term policy might initially seem enticing. However, before you finalize your decision on extended-term insurance, it’s advisable to consider alternative avenues.
Invest in A New Term Policy
Starting with a fresh term life insurance empowers you to explore diverse policy term options. A new policy also lets you reevaluate your coverage requirements. Reassess the benefit amount, the necessary term length, and whether you can afford the premiums.
Since a few years have passed since you first secured your initial term policy, expect a higher premium rate. However, considering that your life situation may have evolved, the premium could be more budget-friendly if you don’t require the exact extent of coverage or duration. Acquiring a new term life policy might still align with your family’s circumstances. It’s worth exploring the features the term life insurance can hold for your loved ones.
Invest in A Permanent Policy
Whole life insurance, the most prevalent form of permanent life insurance, ensures coverage as long as premium payments persist. These policies often resonate with individuals in their retirement years who may require a less substantial death benefit and possess the means to afford the premiums. Some permanent policies accumulate cash value, accessible during the policyholder’s lifetime.
Convert Your Term Policy
A permanent policy guarantees coverage for the remainder of your life, unburdened by term constraints. Although, it may be at a higher premium than a term policy. Assess your current term policy quickly, as specific policies only permit conversion within a predefined coverage window and before reaching a specified age limit.
Long-Term Care or End-Of-Life Policies
Conventional term life insurance or whole-life policies may not align with your preferences. Consider specialized plans tailored to specific life scenarios. Policies integrating long-term care coverage is one example.
