As your life changes, so do your life insurance needs. For example, getting married, buying a home, having children, and getting a promotion at work are all possible reasons to buy additional life insurance. It is not usually necessary to replace your existing policies; however, as you can easily add new policies to account for any changes that have occurred in your insurance needs.
For obligations that have definite expiration dates, such as your home mortgage, purchase term life policies. These policies will give your family the peace of mind of being protected should you pass away, but they will not drag on interminably after the mortgage is paid. Term life policies can be converted or renewed rather than allowing them to expire, but it is probably less expensive to simply replace a term policy with a whole life policy.
Whole life policies do not expire and will not usually need to be replaced. The idea of whole life, also called permanent life, is to protect your interests for your entire lifespan. If changes in your life necessitate getting more insurance, you should keep the existing policy and pick up a second life insurance policy. The advantage of purchasing multiple whole life policies is that they will, in turn, provide you with financial tools that you can make use of while you are still living without jeopardizing the benefits for your survivors if you should pass away.
What you are likely to discover is that converting or replacing life insurance policies will not give you any type of financial gain. In fact, conversion will cost you and replacing a policy has the drawbacks of additional premiums costs as well as the inconvenience of having to undergo a medical exam for qualification purposes. Instead, allow term policies to expire and supplement your existing life insurance with additional policies.
Compare life insurance quotes.