Did you know that you can convert your term life insurance to a permanent plan with no proof of insurability? Many times clients will not be aware of this fact and are excited to hear about this valuable option. Depending on the carrier, there is a period of time that all or part of the policy can be converted to a permanent plan offered by that carrier. Just about every carrier will offer a whole life and or a universal life as a conversion option. For example, if you have a 500,000 20 year term and decide to convert 100,000 to guaranteed universal life, you will then have 100k of guaranted universal life and 400k of 20 year term. It is important to note that this conversion can be done with no proof of insurability. Even if you are uninsurable, you can still do the conversion.
Some companies will actually allow you to convert another companies term to their permanent plan. Usually to be able to exercise that option the company will require that the policy was issued within a certain number of years, with at least a standard non-smoker rate. This can be a great option if the term carrier doesn’t have good permanent policies to convert to. For example, we had a client who had term but wanted to convert part of his plan to dividend paying whole life. The term carrier he was with didn’t offer a whole life product. We were able to place the conversion to whole life with a highly respected mutual life insurance company.
As your needs change, it is important to understand this option.
There are life insurance choices for healthy people after 50 and for unhealthy people obtaining life insurance over 50. If you are healthy or not to unhealthy you obviously have many more choices and the whole suite of products and death benefit amounts are available to you. These products that are fully underwritten will assign you an insurance rating after underwriting which will determine your premium. Depending on your age, 10,15, 20, and 30 year term can be available to you. Also, permanent products like whole life, universal life, and guaranteed universal life. Guaranteed universal life, is very popular with people over 50 as it is a permanent death benefit at the lowest possible cost. While it doesn’t accumulate cash value like whole life, it will guarantee coverage until age 121.
If you are unhealthy and incapable of getting approved through full underwriting, then you can go for the guaranteed issue life insurance. These products are issued even if you are uninsurable in the traditional sense, but you will pay a heavy premium for these products. On top of that you will be limited to face amounts up to only about 50,000.
We generally suggest clients get there life insurance when they are still healthy and can qualify for fully underwritten products. When you get over 50, more health issues can come into play and it is a matter of time before something will affect your insurance rating. While the health issue may not make you uninsurable, it may force you to pay 40% more than you would have 6 months ago for the same coverage. Please call us today at 800-554-5142 and we can walk you through all the various options based on your specific situation.
Getting quotes on term life insurance and return of premium (rop) term life insurance is easier than ever. It is important to make sure that you are getting the quote on the proper type of policy that you are looking for. Through our quote engine at www.paramountlifeinsurance.com you can fill in your information and get a a quote within a matter of one or two minutes. For a (rop) quote you can call us at 1-800-554-9142 or to find the most suitable policy we can offer a free consultation.
There are several things that go into selecting a policy and that includes the length of the term, whether you want money back at the end of the term, what company do you want to work with, and what are the conversion options. If you will keep a 20 year term for only 14 years, then you paid too much and should have selected a 15 year term. Are you better off getting (rop) or should you do a guaranteed universal life as it will be permanent or do you want to have a whole life plan? These are the different options and it can seem confusing and that is why we feel it makes sense to get a consultation with one of our licensed agents. We can help you navigate through the quote process and also be the best estimators of your underwriting rating. For example, if you receive a quote that is overly optimistic or with a company that underwrites poorly for certain circumstances you could be in for a negative surprise when you apply.
Are you backed into a corner and are looking to buy life insurance because you got a bad doctor’s report? Are you concerned that you are hitting retirement and will all of a sudden have no benefits?
We work with clients everyday and often times people are looking to buy life insurance as a reaction to something. While it is important to react to whatever life hands you, it is always better to build a plan before the emergency. If you start to have your agent look for you at an advanced age or once you have medical limitations, you will probably be discouraged with the options. This is why it is important to have a good agent who knows the options on the market as well as which company’s underwrite more favorably for different situations.
With that being said, it is better to button down your life insurance needs before an event forces you into it. The options are usually better and it is usually a lot easier to secure what you want. For example, I recently worked with a client who just developed type 2 diabetes and is now wants to get life insurance. We had talked several times before when she didn’t have this condition and I encourages her to put something in place. Unfortunately, she put it off and know is facing much higher premiums and fewer options. The good news is we work with just about every insurance company out there and were able to take her case to the company’s that underwrite diabetes the most favorably. In fact, we are helping her secure a guaranteed universal life that the premium is guaranteed to age 121.