Converting term life insurance to permanent coverage uses the conversion feature included in many term policies. This feature allows you to convert some or all of your term coverage to a permanent policy (whole life, universal life, or IUL, depending on the carrier's offerings) without a new medical exam or health underwriting. Your original health classification is preserved, which can be extremely valuable if your health has changed since the term policy was issued.
To convert, contact your carrier or agent and request the conversion process. You will select the type of permanent coverage, the amount to convert (all or a portion of the term face amount), and any riders you wish to add. The new permanent policy's premium will be based on your current age at the time of conversion but at the rate classification from your original term policy.
Key conversion terms to understand include the conversion deadline (many carriers require conversion before a specific age, such as 65 or 70, or before the end of the term), the available permanent products (carriers typically limit conversion to specific products), and whether partial conversion is available (converting a portion while keeping the rest as term).
Conversion is particularly valuable in two scenarios: when your health has deteriorated since the term policy was issued (preserving your original health classification), and when your coverage needs have shifted from temporary to permanent (moving from income replacement to estate planning, legacy, or wealth transfer goals). Many policies are convertible, though terms vary by carrier. A licensed agent in our network can review your conversion options and timeline.