If you still have a healthy body, you can consider buying another term life insurance policy to cover major expenses. Depending on the insurance company and your history, you might need to pay higher premiums the second time around. However, if you’re looking into buying a short-term policy of 5 to 10 years, you might be able to negotiate the costs. You can schedule an appointment with an agent from your insurer to guide you in your decision-making process.
Extend Your Policy Year by Year
If you only have a few years left to pay off your financial obligations, it’s a good idea to opt for a renewable term life insurance that you can pay annually. The only downside in choosing this option is that you have to deal with the changing rates of your insurance policy. You can also ask your insurance agent if you can extend your current term life policy every year. This helps you avoid medical exams and save you the hassle of going through another application.
Consider Switching to Permanent Life insurance.
Term life insurance has its own advantages but so does permanent life insurance because it lasts for a lifetime. The downside to switching to a permanent life insurance policy is that it will probably be a higher premium, but they might have more flexibility or benefits. You can choose from three types of permanent life insurance—universal, whole or variable. Most insurers offer you the option of switching to permanent life insurance when your term life insurance ends and you need more coverage.
Just a few things to remember, you need to decide whether or not you are converting your term life insurance policy to a permanent one before it ends. There is also a cutoff for the age of policyholder depending on the insurer.
The decision that you make after your term life insurance ends can affect your financial situation for years. This is why you need to sit down with a trusted financial advisor such as your insurance agent to walk you through the steps to know what’s best for you.
At American Trust , we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (305) 270-2220. Get your free quote today by CLICKING HERE.