When you have people that depend on you financially, it is important that you have coverage through a life insurance policy just in case something might happen to you. Many people choose term life insurance in the earlier years of life. However, if you purchased term life insurance many years ago, you may be getting close to the expiration date. While this can bring on feelings of anxiety, it shouldn’t as there are several options that are available to you. InsureWise is here to talk about some of the different options that you should look into when your term life insurance policy is getting ready to expire.
Can I Renew My Term Life Insurance?
The easiest option that you will find is to renew the current term policy that you have. Many companies make this as easy as possible to keep their customers. However, before you do this it is a good idea to look at all of the options before you. You might find that there is another option that fits your current circumstances and lifestyle better.
Purchase a New Term Life Insurance Policy
As far as term life insurance policies are concerned, there are several different options that you can choose from. You might find that a different company could fit your current needs better than the company you’re currently with. You might see that your premiums change when you decide to go with a different company. Some people might see the premiums reduce in cost, but you are more than likely older than you were before and so you may see an increase.
Purchase a Permanent Policy
Sometimes, it might make sense to go a different route than a term policy and purchase a permanent policy. Many people don’t want to have to worry about a term policy expiring. The most common type of permanent life insurance policy is a whole life insurance policy. This type of policy will provide you with coverage as long as you are paying your premiums.
Convert Your Term Policy into a Permanent One
You might find that the company you are working with has the ability to convert your term policy into a permanent policy. This might be a great option if a permanent policy is what you are looking for. It can be easier to continue working with the same insurance company that you have had in the past. You should know that not all insurance companies have the ability to convert your term policy though.
Purchase a Renewable Life Insurance Policy
If you think you are only going to live for another couple of years, you may decide a term policy or a permanent policy are not the right options for you. In this case, you may want to consider a renewable policy that needs to be renewed annually.