Time to Convert?

Short-term housing

Appeal: Renting lets you enjoy all the comforts and shelter a home provides, but with limited or no maintenance. If you might relocate in a few years, renting can save you thousands of dollars in buying and selling fees. Depending on your situation, a rent payment may initially cost less than a mortgage.

Drawback: Rent payments can increase each time you renew your lease, and your landlord may not offer a new lease. There is no return investment on the money you pay for rent, unlike the equity homeowners build.

Short-term insurance

Appeal: Term life insurance can be the most affordable option when you need a high protection amount but have limited resources. Term plans can provide temporary coverage while you raise a family or pay off the mortgage.

Drawback: Payments that were level for 10, 20 or 30 years, depending on the length of term you selected, may increase dramatically after the end of those 10, 20 or 30 years. The older you get, the sharper your premiums may increase – with no cash value to show for it. Eventually, term insurance can become very expensive. You could end up unable to afford coverage at the time you need it most.

A permanent option

The good news is Modern Woodmen term plans offer a conversion option. This allows you to convert all or a portion of your term life insurance to a permanent plan without blood tests or medical questions.

With permanent life insurance you can:

• Lock in your premium. You could pay more at first for whole life insurance, but your rate will never increase. The total cost over time may even be less than comparable term coverage. Plus, Modern Woodmen whole life plans allow you to structure your premiums to last for 10 years, 20 years, to age 65 or to age 121. Or choose to pay it all at once in a single premium.*

• Lock in insurability for life. Permanent insurance can provide lifelong protection. As long as you pay the required premiums, your certificate can never be cancelled, regardless of age or changes in health.

• Enjoy living benefits. Permanent life insurance plans can build cash value. You can borrow cash value to help pay a child’s college costs, supplement your retirement or take advantage of a business opportunity.

Term life insurance provides great protection. But like buying a home, permanent coverage may be the best option for you in the long run. Your Modern Woodmen representative can help you decide based on your unique needs and budget.