What is convertible term life insurance?
Definitions and Vocabulary
With so many different insurance products on the market, it is understandable that someone might wonder what convertible term life insurance is. There are many different types of term life insurance policies, and convertible term life insurance policies are growing in popularity all the time, so understanding convertible term life insurance is important when it comes to making sure that you get the best term life insurance product for you.
Basic Term Life Insurance
In order to understand what convertible term life insurance is, you first need to understand what basic term life insurance is. Term life insurance is a product that provides extra protection for your family against the worst for a set period time, which is also called the term. Terms can be from 5 years to 30 years. Once the term is reached the policy expires, you no longer have that coverage, but you also no longer make payments for the policy. For example, if someone has a 15 year term life insurance policy, they will make payments every month for 15 years, if they survive the term of the policy then it simply expires. This is where convertible term life insurance comes in.
Convertible Term Life Insurance
Convertible term life insurance starts off with a term, for example 15 years, but also has a window of time where you can change the term life insurance into whole life insurance without having to undergo additional health checks and can bypass other parts of the application process. This lets you stay with a company you know and trust, while saving time on the life insurance application process. As a result, many people enjoy convertible term life insurance policies because of the flexibility they allow. Each convertible term life insurance policy is different, so make sure to research in order to find the best term life insurance for you!
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