Term life insurance is a popular option for people with problems that disqualify them from affordable universal policies. Eventually, the policy’s term will end, leaving the policyholder to determine what they should do next. If you have a policy nearing its expiration, you might wonder what to do to prepare.
Medical Profiles helps people connect with the policies they want with mobile or in-office paramedical exams. We’ll help you navigate your options with the brief guide below.
What Is Term Life Insurance?
Term insurance offers life insurance coverage for a period specified in the policy’s underwriting. For example, you might purchase a policy with a five- to 30-year term. As that term draws to a close, you’ll explore your options to continue coverage without any gaps.
How Term Life Insurance Works
Most whole or universal life insurance policies require a medical exam for candidates to qualify. On the other hand, term insurance typically has more lenient qualifications for potential policyholders. You might buy term life insurance because of its simplicity, affordability, and accessibility.
However, those affordable life insurance rates come with their share of drawbacks. Term policies offer no cash value. Therefore, you cannot access a savings plan if your plan expires.
You must also navigate other coverage options as the term ends. What options should you explore?
Steps To Take Before the Policy Expires
You should ideally begin shopping for further coverage at least a year before your term life insurance coverage expires. That way, the term’s end doesn’t catch you off guard, leaving you with coverage gaps and vulnerable periods. Consider the approaches listed below to plot your next viable steps.
Extend Your Term Life Coverage
One of the more obvious approaches involves simply renewing your current term life insurance policy. Some life insurance providers supply current policyholders with guaranteed renewability. However, you might pay higher rates with each term renewal.
Look Into Conversion
Some providers allow their term policyholders to convert their current policy into whole life or universal coverage. Speak with your agent about conversion qualifications or limitations in advance. Remember, choosing this route can lead to more expensive premiums with limited death benefits and may not be ideal for your family’s coverage needs.
Combine Smaller Policies
Some people craft an insurance mosaic of sorts. They’ll blend numerous, inexpensive policies to acquire the desired death benefits. You can combine coverage options that include:
- Group life insurance policies
- Individual burial policies
- Life insurance riders
- Final expense policies
The combined benefits may cover funeral and final medical expenses while supplying your loved ones with a modest death benefit for stability after you pass. However, you’ll have numerous types of coverage to maintain and upkeep for years.
Choose New Coverage
If you want better coverage without excessive inconvenience, you can shop for universal or whole-life coverage. You’ll jump through more hoops to obtain these policies, but the rewards often outweigh the challenges. One of the best approaches to secure whole life insurance is to prepare in advance by:
- Speaking with your doctor to address any current or past health concerns
- Eliminating bad habits or substance use to lessen their health effects
- Engaging in daily exercise and consuming nutritionally balanced meals
- Working with your doctor to regain control of existing health problems
When you use this approach a year or two before your term coverage ends, you’ll have more success in obtaining affordable yet generous universal life insurance.
Expand Your Coverage Options With Help From Medical Profiles
Is your term life insurance coverage set to expire soon? Let’s increase your coverage options with a paramedical exam that comes to you! Call Medical Profiles at 832-251-3926 to book your appointment for a mobile exam. Learn more now.
