Most people opt to purchase term life insurance which provides coverage for a specified period. This plan tends to be cheaper, but below are some of the reasons why you can convert your term life insurance policy to a permanent life insurance plan.
Availability of cash value
Permanent life insurance policies provide you with cash value which accumulates over time. You can withdraw the available cash value for use in case of emergencies. If you wish, you can forfeit your permanent life plan for cash. This is not possible with term life insurance
Investment for your dependents
A term life insurance policy is a safety net in the event of sudden death, but except in particular cases, it is most likely that you will outlive your life insurance policy. Permanent life insurance policy though is an investment that you build for your dependents. They benefit from your life insurance policy at any time you die.
If you convert from a term life insurance to a permanent insurance plan, you may not need a new medical evaluation. The initial results of the medical assessments for your term life insurance plan will still be used regardless of any new development.
Consistent premium rates
Unlike term life insurance plans with premiums that may change periodically, permanent life insurance plans allow you to pay the same amount of premium. This means that if you buy a permanent life insurance policy, you do not have to worry about rising premiums.