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Convertible term life insurance offers a different kind of flexibility, allowing you to transition your term policy into a permanent one if your needs change over time. For example, if your ...
Term life insurance: Term life insurance is generally the cheapest kind of life insurance. It provides coverage over a specific term period, usually between 10 and 30 years.
By using the convertible term life insurance provision, the insured can convert a term life policy into a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy.
Whole life insurance: This permanent policy offers lifelong coverage as long as premiums are paid, up to a typical coverage age range of 95–121 years. Whole life builds cash value over time ...
An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. [ 1 ] [ 2 ] These are long-term policies, often designed to repay a mortgage loan, with typical maturities between ten and thirty years within certain age limits.
Stranger-originated life insurance ("STOLI") generally means any act, practice, or arrangement, at or prior to policy issuance, to initiate or facilitate the issuance of a life insurance policy for the intended benefit of a person who, at the time of policy origination, does not have an insurable interest in the life of the insured under the laws of the applicable state. [1]
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