Life Insurance Fort Lauderdale Florida FL
Reader’s Question:
It has been 10 years now with my 15 year term life insurance. I don’t think I’ll need the term anymore because my children have left me in our home in Fort Lauderdale. Can I change my term life insurance to the insurance with cash value?
Jack
Fort Lauderdale FL
Are your children financially stable now? If so, then indeed you may not need the term life insurance anymore if you think your children are financially capable. But if not, it might be more practical to continue with the remaining five year term. After all, the cost is less compared to upgrading to permanent life insurance (life insurance with cash value). Besides, you may pay considerable amount in permanent life insurance because of your age. And if you have current health problems, you will also pay higher premium.
If you have enough cash today for a permanent life insurance, better invest the extra in some business or other cash value investment such as bonds or stocks separately rather than investing it in permanent life insurance. This is because permanent life insurance will have relevant cash value starting somewhere on the 12th year. If you are 50 years old now, you will be 75 years old to utilize the investment side of the permanent life insurance.
Anyway, if you have other reasons for shifting, you may check your policy if your term life insurance is convertible. If it is, then you can change to permanent life insurance without going through the process of insurability. If the term life insurance is not convertible, then you would need to purchase permanent life insurance anew from the same or other life insurance company in Fort Lauderdale FL. You’ll have to start with new application and submit to insurability requirements such as medical examination and questionnaires and possibly pay at higher premium because of your age or health problems.
Tags: permanent insurance, permanent life insurance, term life insurance, term policy