For those who want coverage in effect at the time of application, under certain limitations, companies will extend conditional coverage based on the terms outlined in their "conditional receipt". The terms must be complied with prior to conditional coverage, so careful review is imperative if selecting this option. All conditional receipts maintain limits on the amount of coverage conditionally provided and the length of time it is in force. Those using this alternative typically have no other coverage in force and have an immediate need for some form of protection. . even if limited.
Hello Neal, it took me awhile but i actually read over half of the comments on this website. I would still like to get your opinion on my situation. Im 40 years old my wife is 37. Im in the process of getting a 500k term policy for 30 years, and 100k for my wife. my 500k is split into two policies 250k for 20 years and 250k for 10 years. if i die within 20 years of now both policies pay out equaling 500k, but after 20 years if i dont die i loose the 20 year policy and only pay on the 10 year. and only 250k will be payed out if i die within those remaining 10 years. I would like to see what your opinion on this is.
Of course, overall your premiums increase significantly, since whole life insurance is more expensive than term life insurance. The advantage is the guaranteed approval: You does not have to undergo a medical exam as a new customer would. Any long-term medical conditions developed during the term life period cannot be used to adjust premiums upward. Even if there haven't been major changes in your health, insurance companies continually review underwriting standards as new technology becomes available, and you could suddenly go from a preferred to a lesser rating if you tried to buy a whole new policy.