877.227.4484
CONVERTIBLE TERM INSURANCE POLICY
The Benefits of Convertible Term Life Insurance
Convertible term life insurance is a popular option that combines the affordability of term life insurance with the flexibility of permanent life insurance. Convertible term life insurance allows the policyholder to convert their coverage into various permanent life insurance policies without undergoing medical underwriting or health checks. Consequently, if you initially purchased term life insurance and now require a more comprehensive insurance policy, you can easily convert your term policy into a permanent policy without worrying about qualifying for coverage.
One of the key benefits of convertible term life insurance is the peace of mind it offers policyholders. Convertible term policies give the policyholder a degree of flexibility that traditional term life insurance policies do not, allowing them to adapt their coverage to their evolving needs as they grow older. Interestingly, this flexibility is beneficial for young families. It lets them initially purchase affordable term life insurance and convert it to permanent insurance as their income and assets grow. They are, moreover, providing significant protection for their loved ones, even if they pass away unexpectedly or suffer from a severe illness or injury.
Furthermore, convertible term life insurance policies typically have lower premiums compared to permanent ones. Typically, this is because they only provide coverage for a specific term, meaning that the insurance company’s risk of paying out a death benefit is lower. However, by offering the option to convert to a permanent policy, the insurance company can still provide policyholders with the flexibility and protection they need to manage their financial risks over time.
To sum up, convertible term life insurance is an excellent option for individuals who want the affordability of term life insurance with the flexibility and protection of permanent life insurance. With the option to convert their coverage to a permanent policy, policyholders can rest assured that they will always have the coverage they need, no matter how their needs and circumstances change.
Convertible Term Life Insurance Policy: Exploring the Life Settlement Option
In addition to the option to convert to a permanent policy, some convertible term life insurance policies also offer a life settlement option. A life settlement allows policyholders to sell their life insurance policy to a third party for a lump sum payment. This option can be particularly appealing to individuals who no longer need their coverage, as it allows them to receive a significant amount of money upfront.
The amount that a policyholder receives in a life settlement depends on several factors, such as the life insurance policy's death benefit, the policyholder's age and health, and the current market conditions. Generally, the older and less healthy the policyholder is, the higher the settlement offer. However, it is important to note that the settlement amount is typically less than the policy's death benefit.
The life settlement option can be valuable for individuals with a convertible term life insurance policy who no longer need coverage. It is important to understand the risks and benefits of this option before making any decisions.
At Welcome Funds, we specialize in assisting clients with selling their unwanted or unaffordable life insurance policies. With our innovative auction-based platform, we create competition among top licensed buyers, resulting in multiple offers for each policy. Let us help you get the highest offer for your life insurance policy!
Complete our quick Life Settlement Qualifier or call us toll-free at 877.227.4484 to speak with a Client Care Advocate.
LIFE SETTLEMENT BLOG
Direct Life Settlement Buyers vs. Welcome Funds – Advisor Beware!
Posted: by John Welcom
Welcome Funds has the privilege of working with numerous financial advisors and wealth managers – and have done so for two decades – some who exclusively focus on servicing high net worth clients. One such advisor who is active in the life settlement market — and already understands the value he can create for his clients — had historically negotiated directly himself with two or three leading buyers of life insurance policies. He thought that simply engaging with mor...
How to Sell Your Life Insurance Policy for $4,743,000 Instead of $275,485?
Posted: by John Welcom
Mr. Williams purchased $10 Million in life insurance coverage in 2001 to provide his family with financial security. Over time, his financial priorities changed: his wife passed away, his children became financially independent, financial burdens arose and the estate tax exemption increased substantially.
Suitability of Life Settlements
Posted: by John Welcom
Traditionally, estate planning advisors counsel their high net worth clients to obtain life insurance policies with large death benefits. The strategy is simple: create a vehicle for heirs to receive tax-free income at the time of an insured’s passing so sufficient funds are available to pay large estate tax bills when assets are inherited.
What is the Most Suitable Exit Strategy for Life Insurance?
Posted: by John Welcom
All eyes in the life insurance agency and the financial advisory world have been on New York, where in the summer of 2019, the New York State Supreme Court paved the way for implementation of Insurance Regulation 187. This rule imposes a new standard for agents and brokers when issuing a recommendation to a client regarding an annuity or life insurance product.
How to Get the Highest Life Settlement Offer
Posted: by John Welcom
When you decide to sell a valuable personal asset, you usually want to obtain the highest purchase price for that property. It is sound business sense. However, how do you truly know when you have reached the point of accepting and securing the most desirable offer?
Understanding the Fair Market Value of a Life Insurance Policy
Posted: by John Welcom
When a professional advisor identifies a life insurance policy that a client no longer needs or wishes to maintain, he should ask, as standard protocol, whether that policy may have value in the secondary market. If so, the client may be able to sell the policy in a life settlement transaction, enabling him to receive a higher cash payout than he otherwise would obtain by lapsing or surrendering the policy back to the insurance company.
The Power of a Life Settlement Auction
Posted: by John Welcom
Professional advisors with clients who no longer need or wish to maintain a life insurance policy have options when exploring the secondary market. Many advisors prudently rely on a licensed life settlement broker to assist them in the sale of the policy and with all aspects of the transaction. However, there is still a large number of professionals persuaded to work directly with only one buyer, called a life settlement provider.
Rebuttals to the “Direct Buyer” Model for Life Settlements
Posted: by John Welcom
Most professional advisors who explore the potential sale of an unwanted life insurance policy on behalf of their clients will rely on the assistance of a licensed life settlement broker. Life settlement brokers represent the policy owner in the transaction and have a duty to act in their best interests. Most notably, the broker’s and client’s goal is aligned: to sell the policy for the highest price possible.
Carrier Resistance To Life Settlements: Clients Need To Know They Can Sell Their Policies
Posted: by John Welcom
Consumers who sell their life insurance policies in the life settlement market receive as much as seven times more money than they would have received by surrendering their policies back to the insurance companies. Seven times! However, an estimated 9 out of 10 policies are allowed to lapse before paying a claim, according to the Life Insurance...
The Danger of Trying to “Time the Market” for Life Settlements
Posted: by John Welcom
Most investors in the stock market understand the danger of “market timing” — trying to choose the right day to buy a stock when the price is low and sell it when the price is high.
