What is term life insurance with the option to convert?

Answer

This is term life insurance with the option to convert the policy to whole life insurance without providing evidence of insurability. This exchange involves the issuance of a whole life policy at a premium rate.

Convertibility may require that you take a physical exam. Your new rates for the permanent life insurance policy will usually be higher than for your term life policy.

Also, you are usually required to convert by a certain date.

First answer by Ksmail. Last edit by Hadley77. Contributor trust: 30 [recommend contributor]. Question popularity: 12 [recommend question]