Are cash value insurance polices convertible to term life insurance? I want to get rid of my whole life insura

Answer 1

You cannot convert whole life into term, but you can convert term into cash value. Why? If you convert cash value into term, you have to do something with that cash value. More likely you will have to surrender your whole life and pay penalties on it. You should do a 1035 exchange on your cash value into a variable annuity. That way you will avoid taxes, but surrender charges may still apply.

When you get term, you should invest the difference. Put into a IRA or Roth IRA that invests in mutual funds (not in CDs). If you don't have one, go get one. Any financial company can help you out with that (though you want to avoid companies that require you pay a fee).

Answer 2

No, you have to cash it in and use the $$ to purchase some term insurance.

It does go the other way, though; some term policies are convertible to whole life.

Answer 3

Think of it as a ladder, you can only go up with term on the bottom. You can convert Term to UL or WL but not backwards. The only way would be to cash out of the WL policy, be aware of taxes on the money above what you have paid, then apply for the term. If you have had any medical or other events in your life that could affect your insurability, then closely review this option. Good Luck.

Answer 4

Coco Mo Jo is correct. Most whole life policies are convertable to term. Some are automatic if you stop paying the premium. The length of the term depends on the cash value of the policy. The information regarding conversion privileges should be contained in the policy. READ IT! If you have questions, call the agent. They will likely try to talk you out of it, however since their commissions are greater with whole life.

Answer 5

Most are, you should find information about converting your existing policy to term insurance in the last few pages of your policy. Also, if you stop making any payments on the whole life policy you should be covered under their extended benefits. Both of these will be written in your policy. Take a few minutes and read your policy carefully. Good Luck !

Answer 6

From my experience point of view, it cant be done. but seom term can be converted to life policy though.
what u can do is that u can convert ur whole life insurance to paid up rather then cancel it away.
are u following the buy term invest the rest strategy? cause its a double edge sword..... cheers.

Answer 7

You may be able to convert the policy to term insurance.

Check your life insurance policy for "Conversion Privileges". This will explain to you any conversion or convertibility privilege provided in your policy.

Most conversion privileges are for term life policies to be converted to whole life insurance policies.

If you have further questions, the phone number of your life insurance company should be on the first page or attached to your life insurance policy. Contact them and ask about all your conversion options to change your coverage to term life insurance.

Check on quotes for level term life insurance. This is the most common form of term life coverage. It provides you with life insurance protection for a specific number of years - usually 10, 15 or 20 years. The rate will stay the same for each year of your policy. And, the death benefit remains the same throughout the entire term of your policy.

You can get a free report explaining term life insurance and your options at http://www.term-life-online.com/term-life-insurance-free-report.html

Answer 8

Not without a taxable event.

Answer 9

whole life is a permanent form of live insurance and not convertable into term. (term to perm but not perm to term). if you wish to have a term policy instead, i would apply for a new term policy with the same company and have your new term policy replace your current whole life policy. a taxable event will only occurr if you receive more money back from the whole life policy than what you paid into it. 9 chances out of 10, this is not the case as the amount of premiums that you have paid in does not exceed the cash value.

another thing to remember is that by paying the whole life premium on time most likely guarantees your policy to age 100 (or close to it - check your policy). term policy premiums are only level for the amount of years your polic is designed for - 5, 10, 15, 20 or 30 year policy. after that level period has expired, your premiums will increase drastically and will continue to increase each year after.

an option that may be available on your whole life policy (again, check your policy) is either a reduced paid up policy or extended term insurance. a reduced paid up policy is one that uses the surrender value of your current policy to "purchase" a paid up policy (where you don't have to pay any more premiums) but the death benefit is reduced and will not be for the current amount that your policy is currently for. extended term insurance is again using the surrender value of your policy to purchase "term insurance" that will provide you with the same amount of coverage that your policy currently has, but only for a certain amount of time. your insurance company should be able to provide quotes on the reduced paid up and extended term insurance should you decide to go that route.