Extending Your Life Insurance Coverage
It’s common for life insurance policyholders to ask if they can extend their coverage when reviewing their plan. Unfortunately, the answer isn’t always so straightforward. You can’t extend the length of your policy, but there are a few great alternatives that might be right for you.
Generally, it is best to purchase life insurance with the longest term available for your age. If you outlive your term insurance policy, then you may have to be another policy when your health may have declined and you have aged – making premiums more expensive. It is important to lock in cheaper rates while you are young and healthy.
If you’re reaching the end of your life insurance policy’s term, you should know what options you have available. The most obvious option is to buy a new life insurance policy. Of course, you’ll need to re-apply and go through the process all over again. However, it will always be a cheaper option than paying the premiums on your current policy after your term has run out.
Fortunately, the industry listens to consumers. Now, there is the possibility of evolving a term life insurance policy into a permanent life insurance policy. Keep in mind that not all policies include these types of options, and many have guidelines about “when” you can do these conversions. It’s important to talk it over with your agent and fully understand your policy.
We always recommend purchasing the longest term policy that fits your budget, unless you have a shorter need for a specific purpose. By doing this, you will lock in your current health class until the end of the term, rather than purchasing a new policy more frequently, risking higher premiums due to negative changes in your health.
Do you have questions about finding the right, affordable life insurance policy? Talk to the team at Kneller Agency today to get started!
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