What is convertible term insurance and which riders one should get with it to be more useful?

Question

What is convertible term insurance and which riders one should get with it to be more useful?

Answer 1

most term policies are convertable to a certain date that will allow you to convert or change your policy to a whole life or universal life policy with no underwriting.  this option can be quite usefull especially if you happen to become ill and uninsurable.  the coverage amount on the term policy is the same coverage you would receive on the whole life or universal life policy.

as for riders, most companies offer child insurnace riders or spousal riders.  they can be added on to the policy at most any time, but you would want to contact your life insurance company or agent to determine the company's procedures on adding riders.

Answer 2

A Convertible Term Insurance Policy allows you to convert it to a Whole Life type policy without proof of insurability.  For many people, this is not the best choice.

For riders, assuming you are married and have kids (or any combination there of), you should add them on as a rider to save money. For every policy you have, you get hit with a policy fee per year.  Less you have, the better.

Also, if you are going to need more coverage now and less later, see about having the primary policy be the amount for long term and add on additional coverage riders for the length of time you will need the additional coverage.