Finding the right life insurance fit is the best policy

At its most basic, life insurance is a promise you can make to your loved ones. You choose a life insurance policy, pay premiums to a life insurance company and if you die, a death benefit is paid to your beneficiaries to help take care of life’s expenses (e.g. mortgage, college tuition, taxes and more).

For many, the first life insurance purchase happens when getting married or starting a family. It makes sense because you suddenly find that someone else is now depending on you. You will find there are many types of life insurance. So which policy, or policies, should you consider? A good place to start is by answering the following questions.

How long will you need life insurance protection?

Time is a consideration when purchasing life insurance. Term life insurance is the simplest type. For a low out-of-pocket cost you choose the specified time, or term, of coverage. Permanent life insurance is designed to last for your entire life, provided appropriate premium payments are made.

Do you want to build cash value?

Permanent life insurance offers you something that term life insurance doesn’t — the opportunity to build cash value within your policy. As you pay premiums, you build cash value within your policy over time that you can access for any reason.

Do you need flexibility for your financial future?

One important way you can have flexibility is through riders. Riders are additional benefits you can purchase with your policy that allow you to adjust to changing circumstances.

Examples include a waiver of premium rider, which would pay your policy premiums if you’re unable to work because of a disability. An accelerated benefit rider would allow you to access death benefit values of your policy should you experience a chronic or terminal illness. The availability of riders varies by product and state, so be sure to review available riders with your financial professional.

How much and how long would you want to pay for protection?

There are two things to answer here. First, do you want to know exactly how much you’ll pay in premiums to keep your policy in force?

With term life insurance and whole life insurance (which is a permanent policy), you have set premium amounts.

Universal life insurance is a permanent life insurance policy where you can, with some restrictions, adjust how much you pay in the future. Second, many permanent life policies require you to pay premiums over your lifetime, but there are policies where you only pay for a set period of time and the policy is then considered paid up. Your financial professional can help you explore the advantages to both.

Take this first step to find what fits you

As you can see, there are a lot of questions to consider when finding the right life insurance fit for you. A great next step is to meet with an AuguStar financial professional who can discuss your needs and goals and help you explore the possibilities life insurance can offer you.

Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

The optional Accelerated Benefit Rider provides for a partial acceleration of the policy death benefit in the event that the base policy insured is certified by a licensed physician as being chronically ill or terminally ill. By taking an accelerated death benefit payment, a lien is created against the policy death benefit. The lien accrues carrying charges at an adjustable rate we declare. The lien, including the lien carrying charges, will be deducted from the total death benefit otherwise payable to the policy beneficiary(ies) and will reduce the cash value available for policy loans, surrenders, or the exercise of any non-forfeiture option.

The required premium for the policy must still be paid even if an accelerated death benefit is taken. If an accelerated benefit is taken and the policy lapses or otherwise terminates, a taxable event may occur. Any death benefit provided by an optional Accidental Death Benefit Rider is not available for acceleration under this rider.

Any accelerated benefit you elect to take under this rider may be taxable. Consult your tax advisor on all tax matters. Adding the rider to a life insurance policy or the taking of rider benefits may affect eligibility for certain public assistance programs and government benefits.

The Accelerated Benefit Rider is not designed to be a substitute for long-term care insurance, health insurance, or nursing home insurance. Rider benefits and features may vary by state.

Products issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

Three uses of life insurance that may surprise you

You’ve probably heard of using life insurance to protect family and loved ones. Both term and permanent life insurance policies can help give you that peace of mind. But, permanent life insurance can do even more than that:

Funding an education

Whether as a supplement to a college savings plan (like a 529 Plan) or on its own, a permanent life insurance policy can provide you with flexibility to meet college expenses by using your policy’s cash value to take out tax-free loans to help pay for any college expenses (qualified or not).

This could help potentially qualify for higher financial aid amounts because current FAFSA™ guidelines don’t count your life insurance policy’s cash value as an asset.

Providing income in retirement

A life insurance policy can be a key part of a retirement plan to help provide supplemental retirement income. Compared to Roth or traditional IRAs, a life insurance policy may allow you to save more with no caps on eligibility based on income. Advantages of using life insurance include:

No penalties for accessing the cash during your working years and no requirement that you take distributions by a certain age.
Properly structured policies provide the owner with tax deferral during the lifetime and the ability to access cash value on a tax preferred basis.

Gift to grandchildren

Some grandparents today are choosing to provide future financial benefits to their grandchildren. One way to do that is to buy a life insurance policy on the child and then gift it to them when they become adults. The cash value inside the policy may be used to:

Purchase a first home
Start a business
Supplement retirement income
Provide cash to their spouse or great grandchildren at a time when they may need it most

Find a fit for you

Life insurance will always be foremost a product where your loved ones would receive a death benefit should you die. But it definitely is not one-size-fits-all product, so it’s important that you talk to a financial professional to determine the right fit for you.

There are many considerations you’ll need to make, such as timing, the amount of death benefit to meet your needs, the right type of life insurance or your insurability. Your financial professional can help you explore the ways life insurance can benefit you.

FAFSA® is a registered trademark of the U.S. Department of Education.

Distributions, for any purpose, are not taxed under current law provided the policy avoids Modified Endowment Contract (MEC) status and remains in force.

Withdrawals from 529 plans are tax-free if used for qualifying education expenses.

Clients should consult their own tax advisors regarding the comparative tax benefits of 529 plans, as well as the potential taxation of distributions from both 529 plans and permanent life insurance policies.

If you are considering the use of policy loans as retirement income, you should consult your personal tax adviser regarding potential tax consequences that may arise if you do not make necessary payments to keep the policy from lapsing. Consult your financial representative before taking a withdrawal or loan, as withdrawals and loans may cause loss of the no lapse guarantee. In addition, withdrawals may incur substantial charges and tax penalties.

Certain policy loans may result in currently taxable income and tax penalties. If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation. Optional riders may be purchased for an additional cost.

Products issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features, and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

Life insurance loans: Flexibility when you need it

In addition to providing financial protection for your loved ones, owning a permanent life insurance policy (whole life, indexed whole life, universal life, indexed universal life or variable universal life insurance) can offer some flexibility when you need it.

When you own a permanent life insurance policy, your policy has the potential to build cash value and you may be able to access the cash value if you need it through a policy loan.

The loaned funds can be used however you’d like. Loans can serve as a source of supplemental retirement income, help with a loved one’s college tuition, or help pay for unexpected expenses.

How do life insurance loans work?

When you borrow money, the cash value in your policy acts as collateral for the loan. The loan does accrue interest and is added to the loan balance.

You have control over when and how you repay the loan. If the loan is not repaid before your death, the policy death benefit will be reduced by the outstanding loan balance.

Here are some pros and cons to consider:

Pros

No credit check, income, or approval process. Your financial representative or customer service can share if any forms are required for a loan request.
You choose your payment plan. There is no required payment plan or payback date for a life insurance loan.
The loan is not reported to credit agencies and will not appear on your credit report.
Policy loans are not taxable as long as the policy stays in force.

Cons

Loan interest is charged and added to the loan balance.
The death benefit will be decreased by the amount of the outstanding loan and loan interest.
To keep the policy insurance coverage, the policy’s loan balance cannot exceed the total cash value in the policy, since the cash value is serving as collateral for the loan. If the balance and any interest exceeds the total cash value, payment may be due, otherwise the policy can lapse which would result in loss of insurance and adverse tax consequences.

Loan FAQs

Have more questions about loans? These frequently asked questions may be helpful:

How much can you borrow for your life insurance policy?

The amount of money you can borrow against your policy is directly connected to the policy’s cash surrender value – the higher it is, the more you can access in a loan. You can’t, however, borrow more than the cash value of your policy (including the loan’s interest charges). To find the cash value of your policy, you can log into your account and check the “Cash and Loan Values” sub-tab under “Policy Summary.” Use this value as an estimate only. The value may be different due to incoming payments, expenses, etc. To get the most accurate loan value, please contact Customer Service by clicking the “Contact” tab (be sure you are logged into your account). You can fill out the contact form to start the loan conversation. Or, call 800.366.6654.

Are there tax implications to taking a loan?

Generally, loans are tax free. However, if your policy were to lapse, and you had borrowed more money than you paid into the policy, then there may be tax implications.

When do you have to repay a life insurance loan?

With a life insurance loan, you get to choose when and how you want to repay the loan. There is no set payment plan.

How do you repay the life insurance loan?

Loan payments may be made in full or partial payments via automatic bank draft or check and are applied to the current year’s interest first and then to principal. There may be other payment options depending on the type of life insurance that you own. Talk to your AuguStar financial representative or Customer Service at 800.366.6654 to find out which options may be available to you.

How do you make a loan request or borrow from your policy?

Start by talking to your AuguStar financial representative or by calling Customer Service at 800.366.6654. Depending on the amount of your loan request, you may need to complete a form. Limited loan amounts are available via phone.

How long does it take to get a loan?

From the time the request and any necessary paperwork is received, it usually takes five to 10 business days to process the loan and send a check or to direct deposit the loan proceeds.

Consult your representative before taking a withdrawal or loan. Withdrawals and loans may cause loss of the no lapse guarantee. In addition, withdrawals may incur substantial charges and tax penalties. Withdrawals and loans will reduce the death benefit and cash surrender value. Surrender charges may apply to withdrawals. Consult your policy to see if surrender charges apply.

If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

This material provides general information that is designed to be educational in nature and is not intended as specific tax or legal advice to any particular individual nor the law of any particular state. Please seek the advice of a qualified tax or legal professional for your specific situation.

How much life insurance do I need?

Although it is easy to see the benefits of having life insurance as a way to protect your family, it is more challenging to determine the right amount. To help you figure out how much you need, here are a few starting points to consider.

Calculate your potential premiums

There are various ways to get a ballpark figure on how much life insurance coverage the average family should have, but one of the easiest places to start is a life insurance calculator. This term life insurance calculator will calculate annual life insurance premiums based on the coverage amount you input. You may be surprised to find that term life insurance is more affordable than you thought.

Think about your expenses

While a calculator can be a place to start, the figures are just a guideline and don’t reflect your unique needs. Talking to your family and loved ones will help you identify those needs. Here are some questions to consider:

What’s the plan to move forward if you’re no longer around to help care for the family?
What are the total expenses of your mortgage, taxes, and other monthly bills?
Do you have any outstanding debt?
What is your plan for college tuition costs?

If you can project these expenses out over five years, you’ll have an idea of the minimum life insurance coverage you’ll need.

A financial professional can help

You and your family may have other unique needs that should be addressed, too. Perhaps you own your own business, have a blended family, or care for a family member with special needs.

Talking with a financial professional is an important step in helping you find a solution that fits your unique needs.

Not only do they bring expertise in helping you design a strategy, financial professionals can ask helpful questions to guide your conversations, and help you think about financial challenges from a different perspective. They will help you determine how much coverage you need and can also show you ways life insurance can be used beyond helping to provide protection for your loved ones.

What to expect when applying for life insurance

You’ve worked with a financial professional and are ready to apply for life insurance coverage with AuguStar Life. What’s next? While your financial professional will help guide you, here’s a quick overview of what you can expect.

Step 1: Complete your application

The answers on your application serve a few important roles. First, it helps us understand the type of protection you want to put in place, including the amount, type of coverage, customized features, and beneficiaries of the policy. Second, it serves as a roadmap to help our underwriting team quickly and efficiently evaluate your request for coverage. We’re here to help you shoulder important financial risks posed to your family or your business if you’re no longer there. To do that, we need to be able to understand the risks by asking you questions about:

Your occupation, sources of income, net worth, current debt and financial obligations
Any life insurance coverage already in place
Your medical history, including conditions you’ve been or are being treated for, hospitalizations, and prescriptions
Whether members of your immediate family (parents and siblings) have experienced specific medical conditions
Recent or scheduled foreign travel
Personal habits (like smoking, drinking, or recreational drug use) or activities (like scuba diving or mountain climbing) that impact your risk profile

All information you provide is collected, stored securely and kept confidential. While some of the questions might feel a bit detailed or personal, it’s important that you answer them honestly and completely. We want to protect your interests, and the interests of all of our policyholders, so we can maintain fair and competitive prices for protection. Additionally, to protect our policyholders, there are provisions that allow us to cancel or deny coverage if it’s determined that answers provided were fraudulent.

Step 2: We review your application

This step is known as underwriting. Our team will evaluate the information provided in your application, and based upon that information, including your age, health history, amount of coverage requested or other factors, they may request an exam. That exam may include:

Measurements of your height, weight, pulse and blood pressure
A small blood and urine sample
A review of some of the information submitted on your application

If an exam is required, your financial professional will help you schedule it at a time and place that is convenient for you.

Sometimes, we may request additional information to better understand your risk profile. For example, we may order copies of your medical records, documentation that verifies financial information or additional tests, such as an EKG. Occasionally, this part of the application process takes the longest, as we cannot always control how quickly we’ll receive the records we’ve requested.

These pieces of information help underwriters decide if you are eligible for coverage, and if so, the right rates to charge based upon your risk profile.

Step 3: Review your offer for coverage

Once approved, we’ll give your financial professional the details of our offer for coverage to review with you. You’ll have time to review the policy, ask any questions you have, and see whether any adjustment may be made to the coverage before putting it in place. If everything meets your expectations, the financial professional will deliver the final policy to you and help you complete the final steps to put the coverage in place.

We’re here for you

We want you to be confident you’ve selected the right coverage, and have the peace of mind that comes with understanding your policy and the value it can provide for you and your loved ones.

Where future planning meets indexed whole life insurance

There are many ways to build up assets you can use in the future. Roth IRA plans are popular in part because of their tax benefits. Assets inside a Roth IRA generally grow tax-free if the Roth has been established for at least five years and the money is taken out after you reach the age of 59 ½.¹ What’s not to like?

There’s another option that provides similar tax advantages and a few other benefits as well¹: indexed whole life insurance (IWL). An IWL policy can grow assets on a tax-deferred basis² while also providing a few benefits you may not have considered.

Protection

Life insurance provides a tax-free death benefit many times the size of the annual premium. While it can’t replace you, the benefit can provide the funding to ensure that your plans come to fruition and deliver the benefits to your loved ones just as you would have done.

Controlled volatility

When you own an IWL policy, your premiums ultimately wind up in accounts linked to market indices with a floor of 0% asset performance to protect you from steep market downturns.³ In order to provide this floor there is also a cap to the amount that can be earned inside the account. You might think of this as downside protection with upside potential.

Eligibility and contributions

Roth IRAs do have some limits based upon income, as well as limits on how much can be contributed annually. A life insurance policy can be purchased, provided you’re healthy, irrespective of how much you earn. And the only limiting factor on your premium size is the amount of death benefit purchased. Please note, that unlike a Roth IRA, your life insurance policy is a long-term commitment with premium requirements for ten years.¹

Distributions

IWL policies provide you with a variety of ways to access the money inside the policy. Working with your financial professional you can determine which one makes the most sense for you. You may even have the option to change the mode of distribution depending on your risk tolerances or the economic environment. What you get is flexibility in how you access your asset, and that’s a good thing.

When planning your future you should weigh multiple options for how you save money. A Roth IRA can be a fine asset to own, but an IWL may suit your needs more. Or perhaps owning both can make sense for you. Discuss this with your financial professional.

¹ Constellation Insurance, Inc. and its affiliates do not provide tax or financial planning advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax or financial planning advice. You should consult your own tax or financial planning advisor before engaging in any insurance transaction.

² Life insurance cash values grow without being subject to current taxation. Cash values can be accessed by way of policy loans without being subject to taxation. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

³ The deduction of any applicable policy fees may result in a loss of account value when market performance is poor.

Roth IRA contribution and eligibility requirements as of 1/1/2026.

The purchase of an indexed whole life insurance policy is a long-term commitment and is subject to underwriting approval. Life insurance policies contain exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For complete details of coverage, contact the company for additional information. Before purchasing any indexed whole life insurance policy, you should request a policy illustration and carefully compare both the guaranteed and non-guaranteed elements.

Indexed whole life policies are issued as Policy Forms ICC22-IWL-1/U and any state variations.

Indexed whole life insurance issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features and rider availability vary by state. Guarantees are based on the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

Life insurance can help with many needs and stages in your life

You have goals for your future, but sometimes you need a little help to reach them. Life insurance can be used in ways you might not expect when creating a smart financial plan.

Why life insurance?

Life insurance helps protect your family or business from the financial impact caused by your death with a death benefit that in most cases is paid tax-free.

Your beneficiaries can use the proceeds to help:

Cover living expenses
Pay off debts
Take care of final expenses
Provide for your children’s education
Make sure your business keeps operating

Protection and more

Life insurance can do more than protect your loved ones if you die, it can also be there for other needs in life. From supplementing your retirement income, starting a business, or paying for college, many permanent life insurance policies have the potential to build cash value that you can use during your lifetime.

Flexible protection

Meet the unknowns in your life head on by tailoring your policy with riders that can provide early access to your death benefit in the event of a terminal illness or chronic illness or help paying your premiums if you become disabled.

Protect what matters

Life insurance from AuguStar Life means you have our promise to help you protect what matters most while helping you pursue potential for tomorrow.

Three things to consider with indexed universal life coverage

Indexed universal life (IUL) has become a popular form of life insurance protection in recent years. That is likely due to its ability to provide you with death benefit protection for your loved ones along with the following features:

flexibility of payments – you have the option to change the amount of premium you pay
adjustable protection – if you have changing life circumstances, you can adjust the value of what your policy is worth
Growth potential – your policy’s cash value can grow based on the performance of market indices
Protection from losses – although your policy’s cash value can increase based on market performance, you can’t lose money as a result of market losses

While these are some of the standard benefits you can expect, not all IUL policies are the same. There are different benefits and features among them, and it is important you understand how all of these will impact your IUL policy. Most life insurance policies are big purchase decisions, so it’s highly recommended that you speak to your financial professional with any questions you have. While these may not be all the questions that you may have, here are three things you should definitely ask them when looking at an IUL.

What are your options for accessing your cash value?

The cash value that accumulates within your IUL policy can be accessed to supplement your retirement income, fund a college education or pay for any unexpected expenses. The two methods to access the cash value are through policy loans or full or partial surrenders of the policy. Your IUL policy may offer different types of loans. Make sure you discuss the pros and cons of the loan types available to you with your financial professional. A full or partial surrender of your policy has very different implications and should also be discussed.

What impact will fees have on your IUL’s cash value?

With any IUL policy you are considering, you need to ask about fees. You may choose to select optional features with your policy known as riders. These can provide living benefits that customize how the policy works for you. They may include financial help if you are chronically or terminally ill, access additional coverage for yourself in future years, extend life insurance coverage to your children and more. Knowing the cost any additional riders you select is an important discussion you need to have with your financial professional.

Different IUL policies have different levels of internal fees. The fees come from different options on a policy, such as boosting potential policy performance or offering additional protection options. One thing they all do is reduce cash values. AuguStar Life’s Virtus Indexed Universal Life II policy is focused on lower expenses to help make a better policy experience for most clients.

How will an IUL perform in different markets?

One way a financial professional can help you understand the differences between one IUL policy versus another is to run an illustration. This hypothetical scenario can show you how the policies could perform for you over time, especially in regards to the build-up of cash value within the policy and its distribution. Because you have the option to allocate your IUL premiums into an index based account (such as the S&P 500 or Russell 2000) you can see the potential increase in the cash value.

While it’s easy to get excited over any IUL’s potential during positive market conditions, it’s also important to know what might happen during challenging market conditions. Remember how we just said you need to consider fees? Imagine a few consecutive years where the markets are down. While your IUL may have a 0% minimum interest crediting rate, you have to consider any fees your policy may incur. A bad year of returns plus added fees for your policy could be an unwelcome surprise. A lower fee product like AuguStar Life’s Virtus IUL can help reduce costs during years of zero performance.

An IUL can be a great option for many seeking death benefit protection, flexibility and the opportunity to build cash value for their future. It is safe to say that when you take an IUL and add all of its available options, it can make for a very complex life insurance product.

Understanding all of the ways it can help you can seem overwhelming. It really is important to work with your AuguStar financial professional to determine what IUL works best for you now, while also giving you the flexibility to meet any changes in your future years. They will help answer the questions above and more when helping you determine if an IUL is for you.

The S&P 500^® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by the AuguStar Life Insurance Company.

Standard & Poor’s^®, S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the AuguStar Life Insurance Company.

The AuguStar Life Insurance Company’s Orbiter® annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500^® Index.

Don’t overlook the benefits of converting term life insurance

One of the benefits of term life insurance is that it can provide affordable protection for your loved ones for a short period of time (typically 10-20 years). A downside is that since the coverage was only designed to be temporary, the price of the protection will start to increase after the original term is up.

Some term policies offer life insurance conversion privileges, which is the right to turn your temporary coverage into permanent protection.

While there may be limits on this feature — including how long the option to convert lasts, age restrictions, and guidelines on what permanent life insurance policies can be chosen — here are a few reasons why you might consider converting to permanent life insurance, if you have the option.

Benefits that can last a lifetime

With permanent life insurance, you own a policy that can last for your lifetime. You’ll always have it as long as your premiums are paid. Your policy is private and protected from probate and creditors to some degree in every state.

Your premiums now help build cash value

While traditional term insurance can have lower premiums, it doesn’t build cash value. Depending on the type of permanent life insurance policy you choose, you’ll have different opportunities to build cash value.

Certain whole life insurance policies allow for dividends and compound cash value growth. Indexed universal life policies allow you to be more flexible with the premium you pay and offer different options to build cash value and earn interest.

The accumulation of cash value can serve many purposes during your lifetime, including supplementing your retirement income, helping cover education expenses, and serving as useful emergency fund.*

Additional underwriting may not be needed

For most conversions, no additional medical underwriting is needed, allowing for your new permanent policy to be issued sooner. That’s a good thing, because your health could have changed from the time you qualified for your term life policy. However, be aware that some requests, like increasing the death benefit or adding on certain optional features, can trigger additional underwriting requirements.

Convert to meet your need

You typically convert only what you want to a permanent life insurance policy. For example, you may have purchased a $1 million term insurance policy when your children were young. If they are grown and on their own now, you may want a smaller amount of insurance.

Your life insurance conversion amount may be eligible to be less than what your death benefit was for your term life policy. You may be able to keep the rest of the unconverted term coverage in place (and convert that portion later, too) if you choose to. The earlier you convert, the more time you have to take advantage of the benefits of permanent life insurance.

Talk to your financial professional or insurance company to see if you may be eligible to convert some, or all, of your term insurance coverage into permanent insurance.**

*If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals, if taken, will reduce the death benefit. Withdrawals (partial surrenders) and loans from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the withdrawal or loan is taken and, if taken prior to age 59½, an additional 10% federal tax may apply. Always consult with a tax advisor regarding your particular situation.

**Conversion options vary by term product.