All about exchanging your Term Life insurance

Go from protected to prepared when you switch from term coverage to permanent lifelong protection.

Getting your term life insurance was a major first step in protecting the people who depend on you. It’s reliable coverage that can keep you covered for a set period of time, until it expires. And because it’s term insurance, the initial rates are traditionally lower than they are for whole life coverage -- that makes it an attractive life insurance option for a lot of people.

Once you have coverage in place, it can be easy not to look much further than the present. But there’s greater security in planning for the future. Your term life insurance provides a valuable way to protect your family today, with the flexibility to ensure greater financial readiness for tomorrow. It’s not just about being insured. It’s about the added peace of mind that comes from being prepared.

So, as time goes on, you may decide you want lifelong protection that can do even more for your loved ones. That’s why many term customers exchange some or all of their temporary term coverage to permanent protection. Permanent protection provides lifelong coverage that never expires. It also allows you to build cash value that grows over time.

Our permanent life insurance also provides the security of a rate that never increases. For many reasons, permanent life insurance usually costs more than term coverage … but term life insurance rates increase at regularly scheduled intervals, getting higher as you grow older. Having one, locked-in rate that you can count on to never change – for as long as you have coverage – can make permanent life a better choice for a lot of budget-minded customers. Since the rate is based on your age when you exchange, the younger you are when you switch from term to permanent life, the lower that rate will always be.

For customers with AARP Level Benefit Term Life insurance, acceptance is guaranteed to switch to permanent life insurance, with no medical exams required or health questions to answer. That’s important – especially since changes in your health as you grow older may make finding permanent insurance difficult or even impossible.

Only you will know if you’re ready to exchange … and since you can switch at any time until your term coverage ends at age 80*, you don’t have to worry about missing your chance. Consider your finances, your beneficiaries, and your long term needs. And know that you have the protection options you need there for you when you’re ready for them.

*If you are currently in a nursing home, you must wait until age 80 to exchange.