Rose Street Advisors Community |
Life Happens

1. Timing: The level premium paying term is running out…and you still need coverage. Life insurance premiums increase exponentially once the original level term time period expires. For example, year 21 of a 20-year level term policy can see the annual premiums rise 30X over the previous annual premium (in one case, the premium jumped from $1,420 to $45,510 in year 21). 

2. Cost: Life insurance costs are largely based off the age and underwriting class of the insured. As we age, most of us don’t get healthier.  In addition to being older, qualifying through medical underwriting for new coverage could be challenging.  Term conversions are based on the underwriting rate class you earned when the term policy was originally purchased, which could be a significant cost-savings benefit.

3. Convenience: The underwriting process, which includes medical and personal history assessments, can be invasive and time-consuming. Conversions avoid the underwriting process and can be completed quickly.

4. Flexibility: You’re tired of renting your life insurance and want to control how long the coverage lasts and how you pay premiums. Permanent insurance allows you, not the insurance carrier, to determine how long the coverage lasts and how you pay premiums.

5. Change in Circumstance: Your situation has changed and access to tax-deferred cash values for future retirement income and/or tax-free (income, capital gains and federal estate) liquidity at your passing helps accomplish your estate planning objectives.

If you have term insurance and would like to understand your options, an advisor at Rose Street Advisors would be pleased to help.