Do you have a life insurance policy with a term that’s ending soon? Let’s go over your options for continuing coverage. It may be more affordable than you think!
Option 1: Get a New Policy
This is almost always the most affordable option. If you’re in reasonably good health and need coverage for at least 1-2 more years, a new policy will be much less expensive than renewing your current policy.
The process works just like it did when you got your first policy, with an application and a medical exam. If you’re interested in non-medical-exam options, we can look at those, too. The good news is we can look at a number of carriers and shop around for the best price.
By applying for a new policy, you can also take advantage of enhanced features like a long-term care or disability rider. Carriers add new features and riders all the time, so we may be able to get you even more for your money with a new policy.
Call me or email me for a customized quote!
Option 2: Renew Your Current Policy
Your term policy doesn’t actually “expire.” As long as you keep paying the premiums, your coverage will remain in force. The catch? You’ll pay more every year, even if you’re in good health. This is because you’re older than when you first applied, and the life insurance company views your age as a potential risk. In many cases, these yearly increases are prohibitively expensive.
My advice? If you’re in good health, it’s smarter to apply for a new policy. You’ll almost always save money over a renewal. If you’re in worse health than when you applied, however, renewing your current policy may be the best way to keep your coverage without having to take a medical exam. Depending on your policy, we may also have a few other options to reduce the price:
- One-time reduction in coverage amount
- One-time reassessment of your health class
Give me a call and I’ll help you find the right renewal solution for you.
Option 3: Convert Your Current Policy
Many term policies allow you to convert to a permanent life insurance policy without the need for another medical exam. This means you wouldn’t have to worry about the possibility of a term ending. Your permanent policy would cover you for the rest of your life.
If you have worse health now than when you first applied, this may be a great option for you. The new permanent policy will be a bit more expensive than your term policy, but your current health won’t be an issue.
Some policies allow you to convert anytime during your term, while others put a time limit or an age limit on your ability to convert. If you’re not sure what your policy allows, give me a call and we can go over it together. If you’re able to convert, we should start the process as soon as possible — at least a year before your term expires.
You don’t have to go without life insurance coverage just because your term is ending! Get a quote for a new policy now, or contact me and I'll help you find the best and most affordable option to continue your coverage.