What type of term insurance is best for applicants who may need a larger death benefit in the future?

Convertible term insurance is the most suitable choice for applicants who may need a larger death benefit in the future. This type of policy provides the option to convert the term policy into a permanent insurance policy, such as whole life or universal life, without having to provide evidence of insurability.

By selecting convertible term insurance, policyholders can initially secure a lower death benefit for a set term at a more affordable cost compared to permanent insurance. As their need for coverage increases—perhaps due to changes in financial responsibilities such as raising children or taking on more debt—they can convert their policy to a permanent plan, which typically offers a higher death benefit and accumulates cash value over time. This flexibility is beneficial as it accommodates changing life circumstances and provides a safety net if health issues arise, making it easier to secure coverage later.

The other types of insurance mentioned do not offer the same flexibility. Non-convertible term insurance, for example, lacks the option to transition into a permanent policy, which may leave the applicant without the necessary coverage as their needs evolve. Whole life insurance, while it provides lifelong coverage and cash value accumulation, generally has significantly higher premiums than term policies, which might not be affordable for everyone at the beginning. Renewable term insurance provides the option