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Term to Permanent Insurance

It seems every day we have to make a decision. Some of the most important decisions in life, we avoid until we absolutely have to face them. This is true for most people as it pertains to purchasing life insurance. There are so many plans and benefits and many individuals don’t understand the difference between term insurance and permanent insurance. If you have term insurance, you would be amazed to know that choosing permanent insurance can be more beneficial.


Term Insurance And Its Benefits


Term insurance is the most commonly purchased insurance amongst individuals.  It is the most reasonably priced type of insurance coverage there is and can fit in anyone’s budget.  The reason this type of insurance is so affordable is because it doesn’t last forever.  Term insurance offers options for the length of time an individual wants coverage: with the option for annual renewal, 10, 15, 20, 25, or 30 years.  The longer term you choose, the longer your rate is locked in.


Some insurance companies provide a benefit of term coverage to be converted from term to permanent insurance.  This is beneficial for those who aren’t able to purchase permanent coverage when they first get their policy but would like that option in the future.


Term policies can be more cost effective and beneficial for individuals who just want coverage for a certain period of time.  It’s important to keep in mind that with term insurance once the life of the policy reaches the end of its term, the policy is no longer in effect or guaranteed.  You’ll have to pay higher rates or find new insurance coverage, which can be difficult if your health has failed.


Permanent Insurance And Its Benefits


Permanent insurance is for those who want their life insurance coverage to last their lifetime.  There’s no specific length of time associated with these types of insurance policies.  These types of policies are for those individuals who want to leave something for their spouse, children, or someone else dear to them. Life insurance can also cover estate taxes. This type of policy doesn’t have a need for any conversion of permanent to term.


If you’re not sure which type of policy would be best for you, you can talk with an insurance agent who can help you decide.  If you have a limited budget, it may be better to start with a term policy with a company that will allows you to convert your term to permanent insurance in the future.