Renewable vs. Convertible Term Life Insurance

Renewable vs. Convertible Life Insurance – What’s Right For You?

The words “renewable” and “convertible” are two of the need-to-know terms when discussing term life insurance policies. They play a big role in the quality of your plan and therefore you should know what they mean and what they do.

The first is a renewable term life policy. This means that you can renew the your life insurance coverage without having to take a physical exam to re-qualify. In other words, as long as you’ve paid your premiums on time and are in otherwise good standing with your provider, this option allows you to automatically renew your coverage without getting a physical or answering personal health questions. NOTE: Many renewable policies include a clause that will only allow you to renew up until a certain age because your overall health generally deteriorates with age.

The other highly valuable adjective in term life insurance is “convertible.”  No, we’re not talking about your dream car. Having the option of convertible term life insurance means that at the end of your current term policy, you’re able to turn it into a permanent policy. A term policy is generally purchased by those with an illness or those needing to get through other trials in which financial concerns are paramount. But as life circumstances change, this is a great option to have. The advantages of a permanent policy are the ability to cash out any accrued earnings and the opportunity to erase the big question mark that looms over the end of a traditional term policy.

Whether you’re interested in continuing with the less expensive term policy, or looking to convert into a more permanent solution, you should talk to a certified life insurance provider today to find out how to add one of these options to your plan. Misfortune seems to follow those who are least prepared. The sooner you act, the sooner your loved ones are prepared and safe.