Life Insurance , Health Insurance

Why is conversion so important? Here is an example. I recently met with a fifty-year-old who purchased a term life insurane policy five years ago. He has a preferred non-tobacco rate from his carrier for 10 years. This person is seeking my advice because he has had some problems with prostate cancer, and cannot find a carrier to insure him at an affordable rate.

He would like to replace his 10-year term policy with a policy that will last forever. This is a common situation: when people can qualify for life insurance, they don't want it, or they buy the cheapest coverage they can find. When finally they really need a good policy, they discover they can't qualify for one.

Even though his prostate was removed, my client is still showing a PSA reading. Since there is no conversion privilege offered with his insurance policy, he will not be able to continue his coverage after the age of 55. This is a big problem for him, because he wants his home to be paid off for his spouse should he pass away. If he had just spent a little more money and purchased a policy that was convertible to begin with, he would be able to continue his coverage regardless of his health insurance status.
Even though his prostate was removed, my client is still showing a PSA reading. Since there is no conversion privilege offered with his policy, he will not be able to continue his coverage after the age of 55. This is a big problem for him, because he wants his home to be paid off for his spouse should he pass away. If he had just spent a little more money and purchased a policy that was convertible to begin with, he would be able to continue his coverage regardless of his health status.

When shopping for life insurance, always be aware of the rate class of policies you examine, and find out where you stand. This will help determine a cost that is more realistic. If you are considering Term Life Insurance, be sure to inquire about the conversion privilege. If the policy is convertible, find out how competitive the products are (that you can covert into), and how they compare with other permanent products on the market.