First of all, congratulations! Come on you have outlived your policy which is never expected when you are opting for term life insurance isn’t. So congratulate yourself on happily beating the assumption on which this insurance’s whole existence depends. And secondly, at least your children won’t fight over your insurance cover which totally belongs to your spouse as per the policies of the first nominee holder. Well, let’s discuss the problems and solutions which entail because of outliving your policy.

Well surprisingly the term insurance which is taken by you never ‘expires’, yes that’s a fact that only the term period i.e., a tenure which you choose expires and not the whole policy. By time period I mean the tenure choose by you such as 30, 40 years in order to provide financial security to your family after your life. After the time period expire you have the option of continuing your policy on a year-to-year basis till the age of 95, but with much higher cost. You need to read further to know about other options available in such a situation.

Extend your insurance cover

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You can continue paying your premiums till you reach the age of 95 as your insurance policy doesn’t expire but your time period does as already explained earlier. This may be a good option if you wish to continue for a few more years i.e., 2-3 years and also if you have changed in health issues which wouldn’t let you qualify for other policies. But the cost will increase significantly by every year, you can check the same by checking estimated annual premiums for the policy and year that follow.

Convert your insurance cover

This is one of the good things about modernization that all the term insurance have this option available in this period of time. It can be either present in your policy by conversion option or exchange option. This option allows you to convert your term insurance policy into a permanent life policy which knew as universal life (UL) policy.

Conversion policy varies from company to company but the most common ones are mentioned below:

  • Entire Term

 This option allows you to convert your policy at anytime period of your term insurance i.e., you can convert your term insurance policy even before your time period expires.

  • Period:

This option allows you to convert your policy for a particular time period which you wish for.

  • Age:

This option allows you to convert your term insurance policy up until a specific age, which may be 70years.

One of the most important things to use this option is to exercise this before the expiry of your time period, so a better plan accordingly. The best thing about this option is that you won’t have to provide evidence of insurability for conversion into a permanent policy. It is a really useful option for those whose health condition changes by the expiry of the time period of the policy. Usually, insurance companies charge more for the availability of this option than non-universal life policy.

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Renew your cover

You can also renew your life cover, this one of the least expensive options in which you just have to opt for a new term insurance policy which requires the same procedure as it did before, including your health check-up which plays a really important role while taking a term life insurance. This is one of the cheapest of all but just requires the insurability of your good health. It is most suitable if your age is below 70.

Please check your policy carefully before opting for any of the options in the future!


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