Convertible Term Life Insurance

What Does Convertible Term Life Insurance Mean?

Convertible term life insurance is a policy that gives the policyholder the option to convert a term policy into a permanent one at the end of the term, without incurring penalties or undergoing a medical exam. This feature is commonly referred to as a conversion privilege, guaranteed renewable, or guaranteed insurability.

Insuranceopedia Explains Convertible Term Life Insurance

Convertible term life insurance allows the policyholder to expand their coverage to meet changing financial needs or life circumstances. However, this conversion will result in higher premiums. Despite the increased cost, it offers the benefit of permanent life insurance at an older age without requiring proof of insurability.