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What Is Convertible Term Life Insurance?

A convertible term life insurance policy can be converted by the owner into a permanent life insurance policy during a specific period of time, without requiring an exam or proving the insured is healthy.

Life insurance companies that offer convertible term policies set their own requirements you must meet in order to switch to permanent plans, often setting limits on the amount of time you’ve had your term policy, your current health, and your age.

This is a great way for people to enjoy the lower premiums of a term life policy now, while having peace of mind knowing that they will never have to worry about how their potential health changes could affect their future insurability.

Even better? Most term life policies include a conversion option for free.

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Why choose a convertible term life insurance policy?

As I mentioned, one of the major benefits of having convertible term life insurance is that you get to maintain your health rating from your term policy, meaning you won’t have to get another health exam. With a convertible term policy, you can simply convert to a permanent life insurance policy and have coverage for the rest of your life, even if you have become “uninsurable” since getting your first policy.

Another benefit is that, with some insurance companies, instead of converting the full amount, you can just convert some of your term life policy—called a

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