When considering converting a convertible term life insurance policy, what should C focus on the most?

When converting a convertible term life insurance policy, focusing on the cost of the new policy is crucial. This conversion often involves transitioning from a temporary coverage plan to a permanent one, and this shift can significantly affect policy premiums.

The cost of the new policy is a primary consideration because permanent insurance typically has higher premiums than term insurance. Ensuring that one can afford these premiums while also evaluating the potential long-term benefits of permanent coverage is essential. Understanding the financial commitment involved helps policyholders make informed decisions that align with their budgets and long-term financial goals.

While the benefits of permanent insurance and the length of coverage are important factors to consider during conversion, they are often intertwined with the policy's cost. Higher benefits might justify a higher premium, but if the cost is prohibitively expensive, it may not be a viable option. Similarly, the length of coverage impacts the overall cost and potential benefits realized from the policy. Hence, a thorough understanding of the new policy's cost leads to better decision-making.