Question by ratmforever: What does convertible term insurance mean?
I have two questions:
1. What does convertible term insurance mean?
2. Is there a term insurance that allows you to pay the same premium forever? Example: My age is 25, my premium at this age is /year. Can I still pay the /year even if I already 65 years old and older?
Best answer:
Answer by Common Sense
“Convertible Term” means you can convert the policy to a whole life product at any time, at the current rate for your age. There are very few times this is an advantage.
If you buy the term policy with a disability waiver, you won’t need an expensive (rip off) like whole life.
Whole Life Insurance for most, makes no sense after age 65 (or sometimes after your house is paid off & the kids are out of college).
Don’t ever think of a life insurance policy as an investment. It never is.
Consider a five year renewable term policy or better yet a 30 year life certain (or both, laddered).
Paying for life insurance forever (except for tax purposes by the extrealy rich) is only a beneifit to the sales rep. and the insurance company.
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