What is Convertible Term Life Insurance?

What is Convertible Term Life Insurance?

To fully understand the nuances of Convertible Term Life Insurance, it is important to understand the breakdown of the two components of the policy. First, the “term” portion of the policy refers to the period of coverage. Someone with term coverage pays for a specific amount of time, ranging anywhere from one year to thirty years. Universal coverage is the alternative to term coverage, and it refers to an individual being insured for a lifetime.


The Convertible portion of the policy allows the insured individual to convert to a whole life insurance policy at a later date. The convertible policy also allows the insured individual to pay lower rates in the preliminary stages of their lives. The payments eventually balloon as time progresses to account for the higher cost of advanced age. However, the convertible policy holder can change their policy to whole life insurance. At this point they would pay substantially lower their payments.


Why Sell your Convertible Term Life Insurance?

The convertible term life insurance policy is a poor choice of investment. Most large, front load investments such as CD’s outpace the annualized 1 to 2% returns that convertible term life insurance generates.
Is it really worth your time to own these policies? You must take several factors into account when you consider whether or not it is worth your while or not. First, you have to decide if your health is really in such poor shape that you have the potential to lose your life abruptly. There are internal and external factors to consider. First do you exercise, and make it a point to consume proper nutrition? If so, then you are at a much lower risk of suffering from an abrupt ailment.


Next you’ll have to consider you habits. Are you the type of person who enjoys regular skydiving? How about base-jumping, or diving? If you don’t regularly do these things, or things like this you are at a very low risk of abrupt death. If you do exercise and refrain from high risk activity, there is no immediate need for the term insurance, especially when you could realize between 3-6% annually realistically.


Windsor Life Settlements

The life settlement brokers here at Windsor Life Settlements can help you sell your life insurance policy for cash! Contact Windsor Life Settlements today to see if your Convertible Term Life Insurance policy qualifies for sale. If it does, we will find a suitable buyer and get you the most for your policy.