Uh-Oh you just realized my term life rate will increase as of next year.  What are your options?

Your term price goes from 500 dollars a year to 1200 dollars a year next year.    You still need to have the full 500,000  dollar face amount as you need that much at a minumum to cover your liabilities and for income for your family.

Option 1-  You keep your existing life insurance policy and hold onto it despite the increase, but at least you will still have the coverage you need and you don’t have to re-apply and do medical.

Option 2- If you are healthy, you can re-apply for a new term policy and see where the rate comes out.  The chances are good that you can get a less expensive policy with term rates dropping dramatically over the last couple decades.  Not much downside here, except you have to do a new medical exam.

Option 3- You can convert some or all of your existing policy without any further qualifying or medical exam to some type of permanent life insurance.  This can be a great option as this will provide the insurance not only for the remainder of the time that you need it, but also will provide your family a death benefit when you pass along irregardless of age.  On top of that, you will start building equity in the cash value that you can use down the road to borrow against for your expenses or for opportunities.  The downside is that it will cost more to do this than getting a new term, but will avoid any future increases in premium.  Often times, a client will convert say 100,000 of the face amount to permanent and keep 400,000 of term.  That way you get the benefit of both sides of the equation.