Term Life Insurance Conversion – (Everything You Need to Know About Term Conversions)

What is the term of life insurance?

Conversion of life insurance allows you to trade your term policy for a whole life policy.

Most (but not all) term life insurance policies have the option to convert them to permanent without a medical rewrite.

And while this is the best part of long-term policy, you should be aware of the pros and cons of time-shifting.

At RiskQuoter, we provide you with the information you need to make an informed decision about your conversion options.

How Term Life Conversion Insurance Works

Life insurance conversion is easy because there are no medical records.

Any life insurance policy change requires the following:

  1. Additional Policy Information available
  2. Metaphors of Conversion
  3. Conversion Work

But don’t worry; we’ll help you put this together even if we weren’t your original insurance.

Additional Policy Information available

The first step is to find the following information on the current life insurance policy.

  1. Policy Number
  2. Policy Date
  3. Conversion Time
  4. Your First Health Education Class
  5. Support Cost

We use the information above to determine what is available to update.

With the current legal information, we can help you with the transfer images.

Metaphors of Conversion

Did you know that there are endless possibilities when it comes to defining universal life or whole life insurance?

It’s true, and it can be difficult to understand the 10-30 page illustrations that insurance companies provide.

You have to make decisions about premium payments, death benefits, policy withdrawals, and riders.

That’s where we can be of help to you.

Once we know your goal in conversion, we can provide you with images that match your needs.

We have access to illustrations of the best life insurance companies.

Featured Images

Like we said, the options are endless, but we’re getting the hang of it.

Premium Payment options include:

  • Pay annual premiums until death
  • Minimum age – Pay up to age 65 or pay over ten years
  • Standard Fee – Pay “x” amount
  • Skipping Years – Overpaying, skipping a year, restarting payments

Choices for Quality of Death Include:

  • A complete conversion of the word policy
  • A slight twist on the word policy
  • The Certainty of Death
  • Uncertain Death Benefits
  • Increase in Death Benefit (may need to be recorded at maturity)
  • Endowment Death Benefit
  • Zero cost per 100 Death Benefit

Cancellation Policy and Passengers:

Let’s say you’re looking to use your plan to provide additional retirement income in the future.

In such cases, the policy can be designed to provide you with taxable income using policy credits and retirement savings.

You can also select life insurance riders for your conversion plan.

Conversion Work

When you choose what you want, you sign a copy of the copy and turn it in to give it to the home office.

The home office takes 10-14 business days to complete the process and issue a new policy.

If you are making a small change, the home office will deal with this with a new conversion process and a change letter for the reduced process.

In some cases, we may be able to turn around faster if there is a turnaround time or payment due soon.

When Should You Consider Term Life Insurance Conversion?

In our experience, insurance conversions often occur when the policyholder faces a serious health problem or wants to sell their policy to end their entire life.

The opportunity to convert allows you to have the knowledge of a lifetime so that you don’t have to live.

And because you don’t have the right product and conversion, it’s an easy way.

This is especially useful if you have a high table or extras for health reasons.

Let’s say you are selling a whole life policy. In that case, we can help you get the right picture as the sales companies have guidelines that they want to be viewed.

Advantages and Disadvantages of Life Insurance Conversions

Before you switch to life insurance, consider these pros and cons.

Life Insurance Conversion Benefits

  • No medical records required – You will never be denied!
  • There are no clinical trials.
  • Premiums are based on your health status when you first purchased the policy
  • Lifelong learning is available
  • You can add additional passengers
  • A flexible plan allows you to sell the plan
  • You can change part of your policy

Depending on your individual needs, it may make sense to look at a new policy versus converting your existing policy.

Life Insurance Conversion Cons

  • Your premiums increase significantly on a whole life or international policy.
  • Payment depends on your age
  • Some companies limit the available updates.
  • Change options can be limited by old values.

We will tell you the types of life insurance that are available for you to change.

Final Words

Life insurance conversion can be a great way to save your life insurance.

Contact us to discuss your options if you are considering changing your life insurance policy.

We will explain each type of product available and show you the comparisons so that you can make an informed decision.

Thank you for your time. We look forward to hearing from you.