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What is life insurance conversion


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.

What does it mean to convert a life insurance policy?

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 is a conversion in insurance?

The ability, in some states, to switch your job-based coverage to an individual policy when you lose eligibility for job-based coverage. Family members not covered under a job-based policy may also be able to convert to an individual policy if they lose dependent status (for example, after a divorce).

What is convertible life insurance?

Convertible insurance is a type of life insurance that allows the policy owner to change a term policy into a whole or universal policy without going through the health qualification process again.