0:00.0	Hey everyone, welcome back to Finance Friday.
0:07.3	This is another special edition of Money Girl where I answer all the questions that you have about money.
0:13.5	I love hearing from you, and I want to answer your questions.
0:17.3	So be sure to reach out if you have something finance related that's on your mind.
0:22.2	You can leave me a voicemail by calling 302-364-0308. You can leave your name or remain anonymous.
0:31.8	Today's topic is a good one. It comes from Anna. She sent me an email saying, I'm 56 and my husband will be 55 in November.
0:42.5	We both have term life insurance for $750,000. However, the policies will expire in 29 with the option to convert to whole life. We have a 17-year-old daughter and a 21-year-old son,
0:58.3	and we want to leave them money when we're gone. Before our term insurance expires, does it make
1:04.9	sense to convert to whole-life insurance? Or should we take out new term policies? Thank you so much for this question,
1:13.3	Anna. You are definitely in a common situation where it's time to reevaluate your life insurance
1:20.3	needs and determine what's next for you and your family. This podcast will review different
1:26.4	types of life insurance and four options to
1:29.5	consider before your term coverage expires. When we're talking about life insurance, there are
1:36.8	two basic types. You can kind of divide this whole world into two main categories. You've got temporary
1:43.9	or term policies and permanent
1:47.3	policies. Term life insurance only ensures your life for a period of time, and it's what you
1:54.6	choose. It could be 10, 20, or 30 years. If you pay the fixed annual premium and you die within the term, your beneficiary or
2:04.4	beneficiaries will receive a guaranteed death benefit. For instance, Anna may have purchased a 20-year
2:12.8	$750,000 term policy when she was 40. Therefore, in 2029, four years from now, her policy will
2:21.2	expire when she's 60. Now, permanent life, this is the other main life insurance category,
2:28.2	covers you no matter when you die. And as you can imagine, a permanent policy is more expensive than term insurance. And it's also
2:37.6	more complex because in addition to paying a death benefit, it involves an investment that builds
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