by Hope
My quarterly life insurance payment came out of my account this past week. And it prompted me to take a look at my policy. As I was looking around on the site, I saw “Conversion Option expires: 12/24/2021.” No idea what that meant.
My policy is good for 4 more years. When my ex-husband and I originally purchased the two policies, one for me and one for him, we planned it so that the amount would be enough to take care of the kids through high school. And in just 3 short years, all my kids will have graduated high school.
(I continued to pay for my ex-husband’s policy for a number of years after we split, but eventually just let it lapse. As far as I know, he does not carry any life insurance. The few times we have spoken about “what ifs” he always insists that he should be the beneficiary. Ha, NOT!)
What are My Options
Ok, so I called my life insurance policy holder to find out what conversion means.
For those like me, in the simplest terms, conversion means I can convert my term life policy to a whole life policy with no need to reapply/re-qualify (ie medical exam) if I do it before the conversion date. After that, it will require a new application, perhaps even looking at alternative providers and plans and carefully going through reviews like this Globe Life review to choose the best possible policy for my needs. A medical exam would also be needed.
These are the options in a nutshell…
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| Coverage | Monthly Rate | Term | |
|---|---|---|---|
| Current Policy | $250,000 | $22 | Expires in 2024 |
| Options to Convert or Add | |||
| Whole Life | $50,000 | $72 | Rest of my life |
| Whole Life | $100,000 | $188 | Rest of my life |
| Term Life | $100,000 | $32 | 10 years |
| Term Life | $250,000 | $59 | 10 years |
Any way I go, my cost would go up almost double to keep the same coverage. And significantly more to go with whole life. Ugh!
Calling for Advice
I jumped on a call with my dad to get his advice. And the point that stuck with me was that this insurance is not for my benefit. So what is my goal with life insurance?
When it started, it was very clear, to care for the kids through high school if something happened to me.
Now, I’m not sure.
If everything continues to go as planned, I will be debt free before my current policy expires and all my kids will be at least 1 year out of high school. But I don’t know that any or even most of them will be self sufficient by then.
My initial thought is to extend the existing coverage out 10 more years. The rate is not terrible. And hopefully by 10 years they will all be pretty self sufficient. If, God forbid, something did happen to me, it would help get them all through college and maybe provide a small inheritance.
But I’m not sure…and I have a year to make any moves; although, the costs do go up every year I age. So BAD community, share your wisdom with me when it comes to life insurance please.
If you’re looking for more on insurance, consider reading our article on insurance policies you might need after 50.
Hope is a resourceful, solutions-driven online business manager with over two decades of experience helping clients streamline operations, manage projects, and grow their businesses through digital marketing and technology.
But life has a way of rewriting your plans.
A year ago, Hope made the decision to move in with her aging parents full time – a season she wouldn’t trade, even as it came with its own financial and emotional weight. Earlier this year, she lost her mother, and is now walking the tender, disorienting path of grief while learning what “forward” looks like from here.
Hope came to the Blogging Away Debt community in 2015 as a single mom raising five foster and adoptive children. She’s written through job changes, financial setbacks, and the bittersweet transition to an empty nest. Her kids are finding their footing in the world now – and so is she.
Rooted in faith and fueled by the same perseverance she’s brought to every hard season, Hope is ready to face her finances with fresh eyes and an honest pen. She believes that clarity, courage, and community can change the trajectory of anyone’s story including her own.
She lives in Austin, TX with her dad, loves adventures with her dog Addie, and is figuring out, one step at a time, what this next chapter is meant to be.
