Term Life Conversion: Turning Temporary Coverage Into Lifetime Protection

What Is a Term Life Conversion?

A term life conversion is a policy feature that allows you to convert part or all of your term life insurance into a permanent life insurance policy, like whole life or universal life, without proving you’re insurable again.

That means even if your health has changed since you bought the policy, you can still lock in lifelong coverage.

Key Features:

• No medical exam or health questions

• Keeps your coverage active beyond the term

• Available only within a specific conversion period

Why Convert Term to Permanent?

Converting your term life policy isn’t always necessary, but it can be the right move depending on your financial goals, health, and life stage.

Reasons to Consider Conversion:

• Your health has changed and you might not qualify for a new policy

• You still need coverage after your term ends—such as for estate planning or lifelong dependents

• You want to build cash value that can be borrowed against later

• You prefer guaranteed coverage for life, not a set number of years

When Can You Convert?

Each insurer sets its own rules about when and how you can convert.

Typical Term Conversion Windows:

• Anytime during the term

• Within the first 10 years of the policy

• Before age 65 or 70 (depending on the carrier)

Important: If your policy includes a conversion option, don’t wait until the last minute. Once the conversion window closes, you may lose this option forever.

What Kind of Policy Will You Get?

When you convert, you’re switching to a permanent life insurance policy, such as:

Whole Life Insurance:

• Coverage for life

• Guaranteed premiums

• Builds cash value

Universal Life Insurance:

• Flexible premiums and death benefits

• Potential for cash value growth

• More complex structure

Most insurers offer only certain permanent policies for conversion. Ask your insurance company what options are available under your current policy.

How Much Will It Cost?

The main trade-off? Permanent life insurance costs significantly more than term.

However, since you’re not going through underwriting again, your rate is based on your original health rating and age at conversion—not your current health.

Cost Comparison Example:

Tip: If full conversion is too expensive, consider a partial conversion—keep some term coverage and convert the rest.

Pros and Cons of Term Conversion

Who Should Consider Converting?

Not everyone needs to convert their term policy, but it can be a smart move for certain individuals.

Ideal Candidates:

• You’ve developed a medical condition and can’t get new coverage

• You want lifelong protection for estate planning or final expenses

• You expect to need insurance past your term’s expiration

• You like the idea of accumulating cash value

If your finances are tight or you only need coverage for a specific time (like raising children or paying off a mortgage), staying with term may be better.

How to Start the Conversion Process

1. Review your policy to check for conversion options and deadlines

2. Contact your insurance company or agent to explore available permanent policies

3. Decide how much to convert (full or partial)

4. Complete a conversion form—no new medical exam needed

Most conversions are straightforward and take just a few weeks to complete.

Tips for a Smooth Conversion

• Act early. Don’t wait until your term is almost up—your conversion window may close earlier.

• Ask about available policies. You may have more than one permanent option.

• Consider costs. Permanent coverage is more expensive—make sure it fits your budget.

• Consult a pro if needed. While you don’t need an advisor to convert, talking to one can help clarify your options.

Final Thoughts

Term life insurance is a smart, affordable way to protect your family—but if your needs have changed, term conversion lets you extend that protection for life. It’s a valuable feature that can give you peace of mind—especially if your health has changed or your goals have shifted. Check your policy today to see if this powerful option is available to you.