Term life conversion lets you turn an existing term life policy into permanent coverage without a new medical exam. Knowing how it works can help you decide if converting makes sense for your long-term needs.
What Is Term Life Conversion?
Term life conversion is a feature that allows you to convert term life insurance into permanent coverage — such as whole life or universal life — without having to requalify medically. Instead of applying for a brand-new policy, you transition your existing coverage into a permanent one based on the underwriting from when your original term policy was issued.
This option can be especially valuable if your health has changed or if you want coverage that lasts beyond your term period. Understanding how term life conversion works helps you decide whether converting your policy makes sense as your financial goals, timeline, or long-term insurance needs evolve.
How Term Life Conversion Works
Term life conversion follows a straightforward process that allows you to transition from temporary coverage to permanent life insurance without starting over. While specific rules vary by policy, most conversions follow these steps:
1. Confirm your policy is convertible
Review your term policy or speak with an advisor to verify that it includes a conversion option.
3. Choose a permanent policy option
Select the type of permanent coverage you want, such as whole life or universal life, based on your goals and budget.
5. Begin the new premium payments
Once converted, premiums are based on your age at conversion and the permanent policy selected, but no new medical exam is required.
2. Check the conversion deadline
Many policies allow conversion only during a specific window, often within the first 10–15 years of the term.
4. Decide how much coverage to convert
You may be able to convert part or all of your existing term coverage, allowing flexibility and cost control.
Understanding how term life conversion works can help you plan ahead and avoid losing valuable options as your term policy ages.
When Does Term Life Conversion Make Sense?
Term life conversion can be a smart option when your circumstances have changed since you first purchased your policy. Because conversion allows you to secure permanent coverage without a new medical exam, it’s often considered when future insurability or long-term protection becomes a priority.
You may want to consider converting your term life insurance if:
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Your health has declined since your original policy was issued
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You want lifelong coverage that won’t expire
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Your term policy is nearing expiration and coverage is still needed
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You have estate or legacy planning goals, such as leaving money to heirs or charities
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You’re planning for retirement and want guaranteed coverage later in life
For many policyholders wondering when to convert term life insurance or should I convert my term life policy, conversion makes the most sense when protecting long-term coverage options is more important than keeping premiums as low as possible.
Protect Against the Unexpected
Cost Implications of Converting
Term Life Insurance
Cost is often the biggest consideration when deciding whether to convert a term life policy. When you convert, premiums increase because permanent life insurance is priced based on your age at the time of conversion and includes lifetime coverage. The key advantage, however, is that there is no new medical underwriting, meaning your health does not affect the new rate — even if it has changed since your original policy was issued.
Because permanent policies cost more than term coverage, many policyholders choose a partial conversion to manage expenses. For example, converting $100,000 of term coverage instead of the full $500,000 can provide lifelong protection at a more affordable cost while allowing the remaining term coverage to continue until it expires. Understanding term life conversion cost and how to structure it helps you balance long-term security with budget considerations.
Who Should Consider Term Life Conversion?
Who Might Not Need to Convert
Term life conversion is often a good option for older policyholders or individuals whose health has changed since their original policy was issued. It can also make sense for those who want permanent coverage that won’t expire, especially if their term policy is approaching its end. Families who still rely on life insurance for protection may find conversion valuable because it allows them to maintain coverage without requalifying medically. For many people asking who should convert term life insurance, the answer is those who want to preserve long-term coverage options as their needs or health evolve.
Term life conversion isn’t the right choice for everyone. If your coverage needs are temporary and will end when your term policy expires — such as once a mortgage is paid off or children are financially independent — conversion may not be necessary. It may also make less sense for individuals who no longer need life insurance coverage or whose budget doesn’t allow for the higher premiums associated with permanent policies. For some, applying for a new policy or allowing coverage to expire may be a better fit depending on health, financial goals, and long-term planning needs.
Term Life Conversion Deadlines & Rules
Term life conversion options are subject to specific rules and deadlines, which vary by insurance policy and carrier. Many policyholders overlook these timelines, but missing a conversion deadline can significantly limit your options. Once the conversion period ends, converting your term policy to permanent coverage typically requires new medical underwriting, which may result in higher costs or even denial.
Key things to know about term life conversion deadlines:
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Conversion periods vary by policy, so it’s important to review your specific terms
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Some policies allow conversion only within the first 10–15 years of the term
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Missing the deadline usually means medical exams and health requalification are required
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Conversion is optional, but timing is critical if you want to preserve the benefit
Understanding your policy’s conversion rules early helps ensure you don’t lose valuable options as your term policy ages. To review your options, you can get a quote online or call us at (800) 442-9899 to speak with a licensed advisor.
Term Life Conversion: FAQs
What is term life conversion?
Term life conversion allows you to convert a term life insurance policy into a permanent policy — such as whole life or universal life — without taking a medical exam. You keep coverage even if your health has changed since you first purchased the term policy.
How does term life conversion work?
If your policy includes a conversion rider, you can switch some or all of your term coverage to a permanent policy before a specified deadline. The new premium is based on your age at conversion, not your current health.
Can I convert my term life insurance without a medical exam?
Yes. One of the biggest benefits of term conversion is that it typically does not require a medical exam or health questions, even if you’ve developed medical conditions since buying the policy.
When can I convert my term life policy?
Conversion periods vary by insurer but commonly allow conversion:
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At any time during the term, or
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Up to a certain age (often 65 or 70), or
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Within a specific number of years (e.g., first 10–15 years of the term)
Check your policy for exact conversion deadlines.
What types of permanent policies can I convert to?
Most insurers allow conversion to:
Some policies limit choices to specific permanent products.
Is converting term life insurance expensive?
Permanent life insurance costs more than term life because it provides lifetime coverage and cash value. However, converting can be cost-effective compared to applying for a new permanent policy later — especially if your health has declined.
Does my premium increase when I convert?
Yes. Your premium will increase because:
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Permanent insurance is more expensive than term
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Premiums are based on your current age at conversion
However, your rate class is based on your original underwriting — not current health.
Can I partially convert my term policy?
Yes. Many policies allow partial conversions, meaning you can convert only a portion of your term coverage and keep the rest as term insurance. This strategy helps manage costs while securing lifetime coverage.
What happens to my term policy after conversion?
The converted portion becomes a permanent policy, and your term coverage is reduced by the converted amount. The remaining term coverage continues unchanged until it expires.
Is term conversion a good strategy if my health has changed?
Absolutely. Term conversion is especially valuable if you’ve developed conditions such as:
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Diabetes
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Heart disease
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Cancer history
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High blood pressure
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Autoimmune conditions
It allows you to secure permanent coverage that might otherwise be unavailable.
Do all term life policies include a conversion option?
Most modern term policies include conversion, but not all. Some have limited conversion windows or restrict which permanent policies you can choose. Always verify conversion features before purchasing term life insurance.
Can I convert term life insurance after the policy expires?
No. Once a term policy expires, conversion is no longer available. Conversions must be completed before the term ends and within the policy’s conversion period.
Can I convert employer-provided term life insurance?
Sometimes. Some group life policies offer conversion options when you leave employment, but converted policies may be expensive. Private term policies typically offer more flexible and affordable conversion features.
Why do people choose term life conversion instead of buying new coverage?
People convert because:
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Health has changed
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They want lifetime coverage
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They want to build cash value
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They want to avoid a medical exam
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They need estate planning or legacy coverage
Conversion provides security and flexibility later in life.
How do I know if term life conversion is right for me?
Term conversion may be a good fit if you:
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Have health concerns
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Want permanent coverage
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Are nearing the end of your term
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Want to lock in lifelong protection
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Need estate or retirement planning tools
An experienced agent can review your policy and help you decide the right timing and amount to convert.
