How Does Convertible Term Life Insurance Work?

Convertible term life insurance is a type of insurance policy that can provide the benefits of both term and whole life insurance. Here are the basics of convertible term life insurance.

Convertible Term Life Insurance

Convertible term life insurance is a product that starts out as a term life insurance policy. It will have a specific amount of time that it can remain as this type of policy. Then, it has a feature that allows the policyholder to convert it into a whole life insurance policy if they desire to. At that point, the policy will remain as a whole life insurance policy for the remainder of that individual's life.

Benefits

This type of insurance policy is very desirable for many types of people. For example, if you are younger and you do not have a lot of extra income to spend on a whole life insurance policy, you can save some money by getting a cheaper term insurance policy. This will protect you and your family whenever it is most crucial to do so. Then, whenever you get farther along in life and want to guarantee that your family is left with something when you die, you can convert it into a whole life policy.

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