Is Your Term Life Insurance Expired or Expiring Soon? Here Is What You Should Do
A term life insurance policy only covers you for a set period, meaning it comes with an expiration date. Generally, term life insurance will cover you for 5-30 years, depending on your policy type. As per the term life insurance rule, your beneficiaries will get the death benefit if you die during the policy period. However, what if your term life policy is about to expire while you are alive? Let’s discuss.
What Should I Do After My Term Life Insurance Expires, But I’m Still Alive?
A life insurance policy is essential to provide your family with a financially secure future even after your death. So, if your policy expires, you can renew it. However, consider your current situation before renewing your policy. The reason is if your business is stable and you do not have any dependents or outstanding mortgages, you may think about cancelling the coverage.
If you still have dependents or outstanding debts, you should consider renewing your policy and talk about this with your insurer before 6 months of your policy’s expiry date. This will help you avoid coverage lapse while providing enough time to explore various coverage options.
What Are My Options If My Term Life Insurance Expires, But I Still Need One?
If your term life insurance policy is about to expire, but you still need coverage, you can go with any one of the following options:
Renew Your Current Policy
Most insurance providers will provide an option to extend your policy’s term until you attain a certain age (usually 75 years, but it varies from provider to provider).
Renewing your current policy means you don’t have to experience coverage lapse and again take a medical examination to qualify for the policy. However, renewal comes with higher premiums (5-10 times more than your previous coverage). The increase in premiums is perhaps because you are continuously covered despite your current health condition.
Buy a New Policy
If you are healthy enough to qualify for life insurance through a medical exam, you can forgo your existing coverage and opt for a new policy. You have several policies to choose from, including no medical and guaranteed policy, term life policy, whole life policy, universal life policy, etc. Among these, you can choose the best one according to your financial needs, health conditions, and personal preferences.
Convert Your Term Life into Permanent Life Coverage
You can convert your term life policy into a whole (permanent) life policy to enjoy additional cash value. All the premiums you pay for the whole life coverage will grow over time, ensuring a guaranteed death benefit to your beneficiaries.
However, you must pay higher premiums, and all term life policies cannot be converted into whole life coverage, meaning you won’t be able to choose a policy of your choice. Instead, you must choose from what your provider offers.
Based on your current financial status, health condition, and specific needs, you can choose any of these options to enjoy continuous coverage.
Secure Your Life with Jackstone Insurance
Life is full of ups and downs, but we will be there to support you throughout your life with our best-in-class life insurance coverage. Contact us today at Jackstone Insurance Agency to get started.
