If you purchased your term life insurance with Empire Life, you made a great choice.
If you’re thinking about changing your temporary or term life insurance policy to a permanent one and have a convertible policy at Empire; we can help you make the best decision for your situation.
Term life insurance pays out a death benefit if you pass away during the term that the policy is in effect. On the other hand, a permanent policy pays a death benefit no matter when you pass away; the policy covers you for life, not just a set term. As well, a permanent insurance policy can have an investment component that builds up cash value you can access while you’re living. One of the benefits of this is that you can borrow from the reserve via a loan.
You can either repay the loan or never pay it back to yourself…it simply lowers the death benefit amount your beneficiary receives.
As with most life insurance products, it has to be beneficial. When you bought your Empire policy it was the best choice, but sometimes a whole life policy becomes more appropriate as your life changes. Below, we’ll look at some of these situations.
Common Reasons to Convert a Term Policy to a Permanent Policy
- You wanted permanent insurance when you bought your Empire term policy but you couldn’t afford it. Now your financial circumstances have improved and you want the benefits permanent life insurance gives you.
- You’re concerned about your estate taxes, and want your beneficiaries to have the financial protection of a permanent policy. You don’t want your estate taxes to affect how much they receive from your death benefit.
- You’ve met with a financial planner and they recommend you get permanent life insurance.
- Your health is changing or you’ve developed health issues since you bought your Empire term policy and you don’t think it will be adequate; but you know you won’t qualify to buy another policy. Converting your empire policy now means you don’t have to have a medical exam.
- Your life insurance needs have changed, and permanent insurance is a better product for you. Some people, such as those with special needs children, or those who own a business, prefer permanent insurance. Converting to a permanent policy will lock in your insurance coverage and may provide much needed tax planning.
There are two important issues to keep in mind when you’re thinking about converting your Empire policy:
Your Age: If you’re going to convert your empire policy you should do it sooner, rather than later. The cost of life insurance increases with age. If it’s on your mind, do it as soon as you can to get a better rate.
Convert Before it’s too Late: If you don’t convert your Empire policy be the conversion date, you’ll have to have a medical exam. The cost for a permanent policy will be substantially higher, if you even qualify.
If you’ve decided to convert or not sure if your current policy is convertible, it’s time to contact a life insurance broker. At Shelter Bay Financial Corp., we’re experienced life insurance brokers working with all the top carriers in Canada.
If you have an Empire Life policy, we can help even if we weren’t your original broker. We do online appointments and can use screen share software so you can easily see the information we see while completing and signing new applications or conversion applications.
You don’t need to come into our office to get your life insurance coverage.
To learn more, please call toll free 1.888.498.5288.