When a convertible term life policy is converted to a permanent policy

Convertible insurance policies allow insureds to convert a term policy to a permanent policy. The conversion can happen as long as the conditions of the policy have been maintained and payments made on time, No new or additional screening is required either (assuming payments and other conditions are maintained).

What does it mean to convert a term life insurance policy to permanent?

A term-to-permanent life insurance conversion, or term-to-perm conversion, allows you to extend your life insurance coverage. You may have a 10-,15-, 20- or 30-year term life insurance contract now. Instead of letting it expire, you may be able to exchange it for a permanent policy without needing a new medical exam.

What happens when you convert term life to whole life?

Keep in mind that your premiums will increase when you eventually convert your full coverage to whole life. If you convert earlier, though, you'll have more time to accumulate cash value within the policy. Term coverage is popular because it's less complex and more budget friendly than permanent insurance.

Is it a good idea to convert term life insurance to permanent?

A term conversion is when you convert your term life insurance policy into a permanent life insurance policy. Most term policies will include a stipulation that allows you to convert some or all of your coverage into a permanent policy within a certain time frame.