The short answer
Life insurance isn't a separate product. It's a term life policy, and for you the difference is mainly how carriers review the application and set the rate. Rules vary by carrier, so comparing several through an independent agent is the simplest way to find a good fit.
This guide answers the most common questions about best life insurance for families.
Conversion is one of the most useful features in a term policy, and one of the least understood.
Here is how to convert term life insurance to whole life, step by step.
Part of our complete guide: Term Life Insurance: The Complete Guide.
Quick answer
Conversion skips new health questions within the policy's window. You can often convert part of the amount. The new premium is based on your age at conversion.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Best life insurance for families: is life insurance a good fit for you?
- Getting your application ready
- How much life insurance do you need?
- Term conversion: can you change term into whole life?
- Converting term to permanent: should you convert now or later?
- When the term ends
- Optional riders and what they do
- Do you need a medical exam?
- Which term length fits which need?
- Who term life insurance is for
- Frequently asked questions
Best life insurance for families: is life insurance a good fit for you?
It can be, when there's a clear need: someone who depends on you, a debt or cost you don't want to leave behind, or a goal the policy is designed for.
- Often a good fit: you who want coverage they understand and can keep paying.
- Often a good fit: anyone who wants to compare several carriers before choosing.
- Maybe not: if existing coverage already meets the need.
- Maybe not: if the premium would strain your budget; a smaller amount may fit better.
We cover this in detail in Term Life Through an Independent Agent.
Getting your application ready
- Decide the purpose and amount.
- List medications and doctors.
- Compare several carriers.
Compare rates from several carriers in about two minutes. Free, no obligation.
How much life insurance do you need?
Add up debts, the mortgage, the years of income your family would need and future costs like school, then subtract savings and any coverage you already have.
It's fine to start smaller and add coverage later if your budget changes, as long as your health still qualifies.
Term conversion: can you change term into whole life?
Conversion is a quiet but powerful feature. Your health could change in ways that make new coverage hard to get. A conversion option lets you keep coverage for life anyway.
When you shop for term, compare conversion rules, not only the price.
Converting term to permanent: should you convert now or later?
- Your health has changed and new coverage would be hard to get or expensive.
- The conversion cutoff is near and you still need coverage for life.
- Your needs have become permanent, such as a dependent who will need support for life or estate planning goals.
- The term is ending and renewal rates would climb every year.
You don't have to convert everything. Converting part of the amount keeps permanent coverage affordable while the rest runs out with the term.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares term life insurance options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
When the term ends
Outliving your term is the good outcome. It usually means the mortgage is paid and the children are grown. If you still need coverage, plan a year or two before the end date so you have time to convert or compare.
Optional riders and what they do
Riders let you shape a policy around your situation. Here are the ones people ask about most. Not every carrier offers each one, and terms differ.
Living benefits
Accelerated benefit riders can pay part of the death benefit early after a qualifying terminal, chronic or critical illness. Many carriers include a terminal illness rider at no added cost.
Waiver of premium
If a covered disability keeps you from working, this rider can keep the policy going without premium payments for as long as the disability lasts, subject to the policy terms.
Return of premium
Pays back the premiums you paid if you outlive the term. It raises the cost, so compare it with a plain term policy before deciding.
Child and spouse riders
Add modest coverage for family members to your own policy. They are convenient, but a separate policy for a spouse is often more flexible.
Do you need a medical exam?
Many carriers now offer policies that can be approved without a medical exam. Instead of needles and a nurse visit, the insurer uses your answers, prescription history and other records.
- Faster. Decisions can come in days, sometimes the same day.
- Easier. No appointment and no lab work.
- Trade-offs. No-exam policies may cap the coverage amount, and some cost more than fully underwritten policies for healthy people.
Whether you qualify for a no-exam decision depends on your age, health history and the amount you want. Some applicants are moved to an exam partway through. An agent can tell you which carriers are likely to approve you without one.
Which term length fits which need?
The right term ends when the need ends. This table shows common pairings.
| Term | Often used for | Things to weigh |
|---|---|---|
| 10 years | A short loan or a gap until savings catch up | Renewal later costs more |
| 20 years | Raising older children, a shorter mortgage | A popular middle ground |
| 30 years | A new 30-year mortgage, young children | Higher price, longest protection |
| Two policies | Needs that end at different times | Laddering can lower total cost |
Who term life insurance is for
Often a good fit
- Parents with children at home. Homeowners with a mortgage. Anyone whose income supports others. People who want a lot of coverage at a lower price.
Maybe not the right fit
- People who need coverage for life, such as for final costs or estate planning. People who want cash value they can use later. In those cases, permanent coverage may fit better.
