Buy Term Life Insurance and Convert to Permanent

Keep reading to find out why converting your term life policy to permanent can have its advantages.

People typically buy term life insurance because it's affordable, practical, and easy. You simply buy term life insurance for one low price for a specified length of time, also called a term. But what if your needs change, your term policy is set to expire, or you decide you want permanent insurance?

Fortunately, the best term life insurance provides the best of all worlds. You can buy term life insurance now and then convert it to permanent insurance later.

Sometimes called going from "term to perm," converting your best term life insurance to a type of permanent insurance is easy. It doesn't typically require a medical exam and the best term life insurance offers the conversion option, even if your health has declined.

Buying Term Life Insurance? Consider the Option to Convert to Permanent

Here's why converting your term life insurance to permanent is a good idea:

• Permanent insurance typically builds cash value. Even the best term life insurance policy does not.
• The money accrued with permanent insurance is tax deferred. In other words, while the money remains in the policy, you won't pay federal income taxes on it.
• Under current tax laws, your loved ones will not pay federal income taxes on any death benefits. (This is also true when you buy term life insurance.)
• You can access the cash value of your permanent insurance.
• It costs nothing to convert your best term life insurance to permanent insurance.
• You can often choose to convert all or just part of your term life insurance policy to permanent insurance.
• Some permanent insurance policies will cover you all the way to age 100.

Term Life Insurance: Do It While You're Young

When you buy term life insurance at a young age, the premiums are typically quite low. As you get older, buying term life insurance policy can mean paying much higher premiums. So if you buy term life insurance and it expires, you could be faced with a shocking increase, or being denied coverage due to a health change or other factors. Converting your best term life insurance to permanent insurance could be the ticket to keeping your coverage ─ and peace of mind.

Keep in mind, that just like when you buy term life insurance, the premiums for permanent insurance will likely be lower if you convert while you are younger. So the earlier you convert your best term life insurance, the more likely you'll get lower premiums.

Buying a term life insurance policy is easy. Converting it to permanent insurance is, too! To get an accurate term life insurance quote or information on converting term to perm, request a free and easy term life insurance quote today.

Matrix Direct strongly suggests that any life insurance owner, proposed owner, insured or proposed insured retain the services of qualified tax, accounting and legal counsel for advice on tax or legal advice surrounding their specific factual situation.