What is Convertible Term Insurance?
Convertible term insurance means that should you decide that you want your term life insurance policy, or you want life insurance to extend beyond the term period of twenty or thirty years. You bought a twenty year term policy; the premiums were level for twenty years; in the eighteenth year of this contract (this policy is a contract) you say, “Gee, you know, I still love my family, I still want the life insurance in force, but I don’t have good health. What do I do?” You see that in the twenty-first year under the policy – because there’s a page right inside the policy that says in the twenty-first year your premium goes from three hundred dollars to thirteen thousand dollars, and you say, “Oh my goodness! I can’t afford that.” You call up your agent and he says, you can convert your policy to a universal or whole-life policy where the premiums stay level for the rest of your life. You won’t have to have a policy where the premiums go up each year. You can levelize the premiums. With
