Making the switch from term to permanent life insurance

Making a decision on life insurance isn't easy, because so much planning is involved. And much of that planning depends on trying to predict the future.

Most people don't have a magic crystal ball that easily lays everything out for them, so when they're reviewing life insurance options, they evaluate term and permanent life insurance quotes and make the best choice they can at the time.

Term life insurance is a short-term option. It generally lasts as long as you choose, 10, 15, 20 or 30 years. Your premiums will stay the same the entire time, and if you were to pass away during the term, your beneficiaries would get a cash death benefit. The advantage is, this insurance is cheaper than other variations of life insurance. But it typically doesn't build any cash value, according to Dave Ramsey, of the radio call-in show, "The Dave Ramsey Show."

Term life insurance can be a good option for young families, stay-at-home parents, or individuals who have a life insurance policy that they want to supplement.

Permanent life insurance lasts until you die, or you stop paying the premiums. Also, part of the money you pay into your permanent life insurance policy is set aside in an account where it can grow a cash value that you can tap into later on. There are several types of permanent life insurance, each with different advantages.

You can switch from term to permanent life insurance if circumstances in your life change. Check with your life insurance company on its specific requirements.

Generally, convertible term insurance will allow you to make this switch - without needing a health exam, but you could be paying higher premiums, according to Timothy Gorman, publisher of Best-Free-Insurance-Quotes.com

Researching the life insurance options available to you and your family is a very good idea, and ask questions of your life insurance agent about the flexibility of switching between term and permanent coverage.