Convertible Term Life Insurance?

2 Answers

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  +1 Votes 1  0

  Pinyo on May 29, 2010

  When I bought my life insurance, I bought 30 years convertible term life. The premium difference was minimal and the flexibility to convert term life into a permanent life (or whole life) insurance was a very attractive flexibility.

  You should ask your agent for the price difference. I believe the difference is so minimal that many companies make it the default option anyway.

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  +1 Votes 1  0

  lrgche on May 29, 2010

  Pinyo makes a good point that there may not be a significant price difference, but the atual need for the option of converting would be based on your basis for needing life insurance in general.

  For my situation, the basis for life insurance is to simply cover expenses such as college for my sons and the mortgage on our home in the event that I, the bread winner of the house, were not there to provide an income.

  Once those needs are removed, my need for life insurance greatly dimishes. So, over the next 30 years our home will be paid for, our sons “should” be out of school & on their own, able to provide for themselves. On top of that, our other finances should be able to provide my widowed wife, who would have a paid for house and no kids at home, enough to live comfortably.

  Therefore my need for converting at the end of term would be nonexistent.