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- Term life insurance expired? Consumers have a few options
- May 28th, 2010 9:09 AM
Many Americans choose term life insurance over whole life insurance because it’s a more affordable option. But despite the low prices, there is one caveat. Policyholders who purchase a 30-year policy run the risk of outliving their coverage.
Individuals whose term-life insurance runs out always have the option of purchasing a new term policy, CBS Money Watch reports. However, they will have to undergo a medical exam and pay the premiums tied to their age and health, which may be higher than the original policy. They may save money by shopping around and comparing the prices of different insurance companies, Money Watch suggests.
Those in poor health have the option to convert their term policy to a permanent one, albeit at a higher price. However, there is no medical exam and individuals may be able to offset the price by purchasing a smaller policy, the website reports.
While most do not revel in carrying higher premiums than their original policy, it may be worth it to know that beneficiaries and loved ones will be taken care of in the event of the policyholder’s death. Life insurance can be instrumental in paying for funeral costs, estate taxes, or simply supplementing their survivor’s income.
This article was originally published by Life Quotes, Inc.
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