Hey all, I’m strongly considering using my term policy’s conversion option. It’s with American General and I’d be looking at an indexed universal life (partial conversion). Typically, I’m pretty anti whole or universal but I think I may be one of the people it’s right for.
I have a life insurance need for the next 15-20 years. I prefer 20 to cover my family’s life goals if something should happen to me. My current policy lapses in about five years. Since I got my initial policy to now, I’m a decade older, I’ve had cancer, I have a diagnosed mental health issue (anxiety), and my one surviving parent died. So basically, low 40’s, cancer survivor, and no living parents (they both died under 60 years old). I’m also “obese” according to BMI.
Please help me understand and feel better about converting. My family can afford the quoted rate, it’s actually lower than I thought it would be. I’m just not sure if I should opt for the safe choice of conversion or hope for a better rate in the term market on a 15-20 year policy (basically would cover age 43-55ish, preferred 43-60ish). I did get a rough quote last year (not a firm quote because I didn’t apply) and it was more $ per month for a lower face value. That is what got me considering conversion. I think insurance companies might not want to touch me at all and if they do, it seems the term rates might rival UL anyway.
Also, can they jack up the premiums on IUL? That’s my only significant concern, that they tell me it’s one rate then corner me later and then greatly increase the monthly rate.
Premiums can change, but you usually have some control over them. Be sure to read the fine print and ask your agent about possible increases. It’s smart to consider your options, but if the quoted rate feels good, it might be worth going for it.
Choose a policy that fits your budget and gives you the coverage you need. Don’t stress too much about premiums increasing most reputable insurers won’t raise them unexpectedly. Just be sure to read the fine print and ask plenty of questions.
Converting to an IUL can be wise if you need coverage and your current health makes finding new term insurance challenging. However, be cautious premiums can increase if you don’t understand the terms fully.
Read the fine print and ask your agent about possible rate changes. Staying informed helps you make the best decision for your situation. You’re doing the right thing by seeking advice.
If your main need is a death benefit, start by applying for new coverage. Go through an agent who can fully underwrite your policy and advocate for you. Once you have all the information, then decide about the IUL.
The downside of an IUL is that it’s complicated, with many moving parts, and it’s not always set up with your best interests in mind. Watch both pro and con YouTube videos, and have your agent explain everything clearly. Make sure you fully understand it, and you’ll be fine.
I’ve had one for a few years and have had to adjust my monthly contributions. I started at $500 a month for the first 8 months, then had to lower it to $250. Now, I’m back to putting in $500 a month.