What should a policyholder with a convertible term insurance policy do if they become healthy again?

A policyholder with a convertible term insurance policy should check if a new policy is cheaper before policy expiration for several reasons.

Firstly, a convertible term insurance policy typically gives the policyholder the option to convert to a permanent life insurance policy without having to provide evidence of insurability. However, if the policyholder's health improves, they may qualify for more favorable rates associated with a new policy due to their improved health status.

By comparing the cost of converting their current policy with obtaining a new policy, the policyholder can make a more informed financial decision. If the new policy offers lower premiums or better coverage options, it could be a more advantageous choice.

Additionally, waiting until the policy expiration date to make decisions could lead to missed opportunities or changes in the insurance market that may benefit the policyholder. Therefore, actively investigating new policy options while considering conversion allows for strategic financial planning in alignment with current health circumstances.

This approach takes into account both the individual's health improvements and the broader insurance landscape, ensuring that they secure the best possible insurance coverage at the most reasonable cost.