You made a smart decision when you purchased your term life insurance policy — you knew it was important to protect your family. But it’s been a while since then. Does it still meet your needs?
Luckily, your life insurance policy can grow with you. You’re able to convert most existing term life insurance policies to whole life insurance, giving you permanent insurance. But how do you know if permanent life insurance is the best option for you? We give you five reasons why you should convert term to whole life insurance.
1. Whole Life Coverage Never Expires
Term life insurance is purchased for a pre-determined amount of time — usually 10, 20 or 30 years. When the term is up, you no longer have coverage unless you convert to a more permanent insurance option, like a whole life policy. Whole life insurance never expires and covers you for a lifetime so long as premiums are kept current.
2. Whole Life Insurance Can Build Your Savings
Part of your whole life policy premium goes toward building its cash value over time. This means that converting your term to whole life insurance gives you a valuable savings tool. You can borrow against the cash value of your policy, making a whole insurance policy a way to beef up your savings.
3. It Can Supplement Your Retirement
Whole life insurance policies can also be a tax-advantaged way of funding your retirement. Depending on your policy’s structure, you may be able to use your whole life policy’s cash balance as a tax-free source of income in your golden years.
4. Your Policy Can Provide Funds for Long-Term Care
Because your policy accumulates value based on your paid premiums, you can use this cash value to help pay for long-term care needs down the road. (If you’re looking to plan for long-term care needs, consider talking to your agent about a daily living rider.) This lets you preserve your estate for your beneficiaries.
5. You’ll Provide Security to Your Beneficiaries
At the time of your death, your whole life insurance policy will provide lasting financial security for your loved ones. You can choose how your policy will pay your beneficiaries, and rest assured knowing this benefit never expires, so long as the premiums are kept current.
Convert Your Term Policy to Whole Life Insurance
Contact your Farm Bureau agent to learn how you can convert your existing term policy — you may even be able to get a conversion credit for making the transition.