Friends, we know that families like ours have different needs than other families. We have vulnerable children that require lifelong financial and medical support. And let’s face it – we can’t solve the medical support needs without solving first for how to pay for the medical. It’s what’s keeping us up at night – even when we are exhausted from caregiving all day.
One tool I want you to know about is convertible term life insurance. It’s a tool that can help caregivers still in their earning years. It provides a way to purchase life insurance at a lower cost now, with the option to purchase permanent insurance later on without requiring medical underwriting.
Your Needs
When you are still in your earning years, life insurance needs to fulfill several needs –
- Income replacement or providing income for loss of caregiving,
- Loss of saving that came with that income/caregiving,
- Income to cover the financial and long term care needs of the child with a disability.
Convertible term is offered at a lower price point than permanent insurance, which can often allow you to meet all three needs mentioned above, without going beyond your budget.
TLDR
- Life insurance is an important tool for special needs families.
- Convertible term may be a less expensive option for families in their earning years.
- Convertible term gives the option for families to convert more later when their expenses are lower.
How Convertible Term Life Insurance Can Help
Convertible term life insurance is a type of life insurance that provides coverage for a specified period of time, typically 10, 20, or 30 years. During the term of the policy, the insured pays a fixed premium. If the insured dies during the term of the policy, the death benefit is paid to the beneficiaries.
One of the key benefits of convertible term life insurance is that it can be converted to a permanent life insurance policy at any time during the term of the policy. This means that the insured can lock in a low premium rate now, and then convert the policy to a permanent policy later on when they are older and their health may have changed.
Another benefit of convertible term life insurance is that it can be used to purchase long-term care insurance. Long-term care insurance is a type of insurance that provides coverage for the costs of long-term care, such as nursing home care or home health care. By converting a term life insurance policy to a permanent policy, the insured can use the death benefit to purchase long-term care insurance without having to undergo medical underwriting.
Learn More Today
Convertible term life insurance may be an important tool in your special needs financial plan – allowing you to put the guardrails on as you walk the path, and potentially reducing the risk to your family’s well-being. It falls in the “Protect” portion of our “Care. Protect. Grow.” model.
Have more questions? Book a consultation with us today by clicking here.
Do you have a recommendation for a future topic? Send me an email at kristin@allneedsplanning.com. I look forward to hearing from you! Convertible term life insurance is a tool that can help caregivers in their earning years.
Investment Advisory Services offered through Sound Income Strategies, LLC, an SEC Registered Investment Advisory Firm. All Needs Planning and Sound Income Strategies, LLC are not associated entities
