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Raley, Watts & O’Neill Insurance

Since 1950, Raley, Watts & O’Neill has been serving the insurance needs of our clients. We started as a one person operation in Lexington Park, MD and are proud of our small town heritage. We have worked hard to maintain the fundamental principles of our roots while we have grown into a company that serves clients throughout the Mid-Atlantic, the United States and Internationally. We pride ourselves on getting it right and taking care of the needs of our clients. We simplify the insurance process and take the time to make sure each of our clients understand their options, what they are buying and where their money goes. Our committed staff has the expertise and extensive experience in a broad range of insurance products and services like Commercial, Personal, Bonding, Safety/Risk Management, Group Health, Life and Financial Services. We would welcome the opportunity to demonstrate to you how working with Raley, Watts & O’Neill is about more than just insurance; it is about a long term relationship. We always strive to never veer from our values – C.A.R.E

Term Life Insurance: The Conversion Option

Gordon O’Neill Gordon O’Neill , 12/2/2015
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Term life insurance is temporary, but it doesn't have to stay that way. Most term life policies sold today can be converted to permanent whole life or universal life which will provide coverage until you die and can offer significant advantages. When you convert from term life to permanent, you won't have to answer questions about your health or undergo a medical exam. If you bought a policy when you were in excellent health but then later got sick, you’ll maintain the health rating you had when you purchased coverage. If you're relatively young, the conversion feature also allows you to build your life insurance investment gradually as money becomes available. More and more people are using this strategy to accumulate a life insurance nest egg for their beneficiary(ies). For instance, you might convert $100,000 of a $1 million term life policy to permanent life every few years. When shopping for convertible term life coverage, ask yourself:
  • Is there a deadline for converting? Although some policies let you convert at any time until the end of the term, others only allow conversion during a specific period.
  • What are your conversion options? This will depend on the insurance company and the quality of its portfolio.
  • What are your options if you don't convert? Once your policy reaches the end of its term, the premium spikes and is no longer guaranteed. To keep coverage in force, you’ll either have to either pay a far higher rate or shop for a new policy, which might be difficult if your health has declined.
We’d be happy to review your financial situation and offer our recommendations. Just give us a call.