Convertible term life insurance is a type of term life insurance that allows policyholders to convert their term policy into a permanent life insurance policy without providing evidence of insurability. The conversion can be done during the period set by the policy, which may end before the term does (for example, at a set age). The new premium is typically based on the insured person’s age at the time of conversion. It’s a term policy with the conversion privilege; how conversion works is explained under “term conversion”.
Key aspects of convertible term life insurance include:
Conversion option
Allows switching from term to permanent insurance.
No evidence required
Conversion does not require proof of insurability.
- New premiums are calculated based on the age at conversion.
This option provides flexibility for policyholders who may want permanent coverage later without undergoing additional medical examinations.