When is the best time to change to permanent life insurance?
It’s easier to change when you are younger. Why? • As you get older, your health may decline. It may cost more to get new insurance. • In some cases, an insurance company may refuse to cover you. Tip: Don’t wait so long that it becomes hard to change to permanent insurance. Review your life insurance often and ask yourself, “Is term life insurance still right for me, or do I need to change?” How do I make it easier to switch? If you think you may want permanent insurance some day, plan ahead. There are two ways to make it easier to change: • Get convertible life insurance. This may cost more, but it lets you convert to permanent insurance without a medical exam. • Some workplace insurance plans let you convert, or change, automatically if you leave the company. Again, there’s no medical exam. Example: Let’s say that you buy a 20-year term policy with a 10-year conversion clause. This means you can change to a permanent policy within the first 10 years. Nine years into the contract, you
