Expiring Term Insurance
In this video I am going to discuss your options when your term life insurance is nearing term end.
Term life insurance offers budget-friendly, temporary risk protection. It can be customized to your life, because one of the main benefits is flexibility: you can choose term length, the coverage amount, and you’ll have different options that term ends.
When your term coverage is coming up for renewal what are your options?
1. Renew
· This is the default: When the original term expires, if you don’t do anything, your term life insurance will automatically renew on a yearly basis until its ultimate expiry date.
· You don’t need to requalify or answer any more health questions.
· When your coverage renews each year, your premiums will increase to a contractually guaranteed rate that was set out when you applied for the policy. If your health status hasn’t changed since you applied for your last term coverage, often the renewal rates are less attractive than you can find by applying for a new policy.
2. Re-apply for coverage
· If you decide you want to be covered for longer, Unity will survey the market to find you new coverage among all carriers.
· In this scenario, you will need to requalify for coverage. Sometimes that may involve answering health questions and financial underwriting, depending on your age and the amount of coverage.
3. Convert to permanent insurance
· If you decide you want to be covered for longer, permanent coverage provides coverage for life, and investment and advanced planning opportunities.
· In most cases, you can convert a term policy to any permanent plan that is offered by that carrier for conversion at any time after the first anniversary of the policy.
· Your premiums will be based on the coverage you choose.
· You don’t need to requalify or answer any more health questions.