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  • A Hot Price for U.S. Businesses
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  • Home-Buying Tips for the Single Guy and Gal
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    Welcome to the world of food trucks! When you picture building your catering business, is the image more truck than tent? The mobile food industry has a long and tasty history in the U.S.
  • Staffing Your Catering Business
    Like many entrepreneurs, you may have begun your catering business as the sole cook and bottle washer. But at some point, you will discover that going it alone not only impedes growth, but is a recipe for burnout and collapse. And you’ll face the question of every successful catering business: How do I find and […]

Melendez Insurance Blog

What Happens If I Outlive My Term Life Insurance Policy?

In the vast majority of cases, you won’t get a payout when your term life insurance policy expires. The exception is a return of premium policy, which returns all of the money you paid over the years back to you. However, the premium is usually much higher for this option than it would be for the average term life policy.

To avoid losing the premiums you’ve paid out over the years, you might consider converting your term life policy to a permanent policy like whole life or universal life. For many, life and financial circumstances might have made a term life policy the best choice in the past. Now might be the right time to change to a permanent policy.

The differences between a term life and permanent life policy

A term life policy tends to be more affordable, but only covers you for a specific amount of time. Policy lengths can last from as little as five years to as long as 30 years. You choose what works for you.

Permanent life insurance may cost more, but it lasts your entire life and can build you cash value that increases the longer the policy is in force. Most term life policies allow you to convert to a permanent life policy. Although your premium may go up, you can now have a policy that lasts your entire life and lets you build your wealth.

If you decide to convert your term life policy to a permanent life policy, you may be able to skip the medical exam or other steps that you went through to get your term life policy. It pays to convert ASAP since the sooner you open your permanent plan, the more time your money will have to grow over the course of your life.

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