Common Gap. DEFINITION of 'Common Gap'. A price gap found on a price chart for an asset. These gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point. In general, there is no major event that precedes this type of gap.
Most term life insurance policies sold today come with a conversion feature that allows you to convert some or all of your term life insurance policy to a permanent policy like whole life, universal life or variable life. Some term policies also allow you to convert your term policy to a permanent policy in phases.
Term life insurance policies serve a purpose. So do whole life insurance policies. The purpose of term life insurance is to protect your family for a specific time period. If you buy the right term life insurance, it does the job beautifully well. On the other hand, whole life insurance has two purposes. The first is to protect your family. (And if you face estate taxes, whole life insurance does protect you against that problem while term life doesnât.) The second purpose of whole life insurance is to make insurance companies and agents lots of money.