convert to permanent?
Hello,
Looking for an opinion independent from my agent.
My term life insurance with Nationwide has one year left with level premium until it switches to increasing every year.
The only reason I have insurance is for my business, where it's required for my SBA commercial mortgage loan. I initially bought this policy when I was younger and the coverage overlapped when it was needed for the loan. No dependents.
For the cheapest coverage until the end of this loan (> 20 years), should I get a new level term policy? This policy had 10 years of level premium, so I expect I'd have to shop around again in 10 years two more times for the cheapest coverage, unless there are 25 level terms. If I stayed with this policy, the annual premium ramps up fast and there's no way I'd want to pay the premiums listed on the sheet for 25 years. Unfortunately, shopping around will necessitate more medical exams and reseting my age.
The idea of having a permanent policy to leave a death benefit to my spouse (she has her own independent career) or charity seems appealing, along with the utility of a cash value policy. I have a good health status on my current policy and can convert without another medical exam. Would this be a better cheaper option in the long run? I don't know.
I am sophisticated and disciplined enough to invest money not used for permanent insurance in the markets, but I'm curious if buying permanent insurance brings an overall better benefit at the end of life, and might be cheaper if just converting my current policy.
In the end, there's just a lot of moving parts here and I'm not sure the best direction to go.
Another option could be a decreasing term premium in line with covering the commercial mortgage.
(current age in early 40s)
submitted by /u/YeahOkayGood
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