How can I convert part of my term life insurance to permanent life insurance?

If you own convertible term life insurance, then your policy probably contains a provision that will allow you to convert the policy to permanent life insurance.

This will include universal life, variable life or whole life.

This type of policies usually claims that conversion must take place within a certain time after the policy or before you turn a certain age.

When you do convert your policy, you will be able to enjoy all the benefits of cash value life insurance, tax-favored buildup of cash value, lifetime coverage and a more stabilized premium structure.

You also won't be required to provide proof of insurability at the time of conversion. Keep in mind that you will pay a higher premium for the cash value insurance.

For example, you can opt to convert $50,000 to permanent life insurance while keeping $50,000 in term life insurance (if you have $100,000).

Afterwards, you will be able to either convert the $50,000 term policy to permanent life insurance or keep the remaining term insurance until the term period expires.

Age at the time of conversion will affect the premium you will pay for the permanent life insurance policy.

In some cases, your age when the original policy was purchased (original age) might be the factor affecting the premium that you will pay.

In order to clear out any misunderstandings, it is highly recommended that you contact your insurance agent and find out the details.

Keep in mind that converting term life insurance to permanent life insurance is not difficult, however, rewarding.

Life insurance is crucial and finding out everything that you can do with your policy to best suit your needs will pay off at the end.