Switching terms or conditions of life insurance?
Ok, so let’s say I take out a 20 year term life insurance policy then after 13 years I want to convert to whole life. If I’m currently at a 1a rating, do I have to go through medical exams again and risk having my rating changed? In other words, what happens if I have a heart attack between now and then and then want to change policies? Would they then rate me 4c or something and it end a relatively larger amount?
There are "guaranteed renewable and convertable" riders you can add to that term policy, when you first buy it. As long as you’re not increasing coverage, you could convert it to whole life whenever you wanted to, at the predetermined rate. Not the predetermined term rate, the "guaranteed convertable" rate. It will be a lot higher, as the whole rate is higher than the term rate.
They won’t rerate you, unless you want to increase your cvoerage amount.
Unless your original term policy provided a conversion option, it’s a whole new application for life insurance.
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There are "guaranteed renewable and convertable" riders you can add to that term policy, when you first buy it. As long as you’re not increasing coverage, you could convert it to whole life whenever you wanted to, at the predetermined rate. Not the predetermined term rate, the "guaranteed convertable" rate. It will be a lot higher, as the whole rate is higher than the term rate.
They won’t rerate you, unless you want to increase your cvoerage amount.
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You just need to make sure that the term policy you buy is convertible AND that it’s convertible to something competitive. An insurance broker can help you with that.
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