Since 1994
By the Termco teamLicensed life insurance agents since 1994Updated
What a conversion privilege is
A conversion privilege (or conversion option) is a clause in many term life policies. It lets you exchange your term coverage for a permanent policy from the same insurer, such as whole life or universal life, without proving you're still insurable. The new policy is usually issued in the health class you had on the term policy, even if your health has gotten worse since.
The deadlines that matter
Conversion rights don't last forever. Policies typically limit conversion to one of these, whichever comes first:
- A number of years into the policy, or before the term ends
- A maximum age, often somewhere around 65 to 70
Some policies allow conversion to any of the insurer's permanent products; others limit you to one specific "conversion product." These details vary a lot between insurers and are worth comparing before you buy. Find your deadlines in the policy's conversion provision, or ask the insurer or your agent.
What converting costs
Your new permanent premium is based on your age at conversion, not your age when you bought the term policy, and on permanent-insurance pricing. That means it will be much higher than your term premium. You can usually convert only part of your coverage to keep the cost manageable, and let the rest of the term coverage continue or expire.
When converting makes sense
- Your health has changed. If you've been diagnosed with a serious condition, converting may be the only way to keep coverage at a reasonable price, or at all.
- Your needs became permanent. A child with special needs, a business obligation or estate-planning goals can turn a temporary need into a lifelong one.
- Your term is ending and you still need some coverage. Converting a portion before the deadline can lock in permanent coverage without new underwriting.
When a new policy may be better
If you're still in good health, buying a new policy, term or permanent, may cost less than converting, because you can shop every insurer and qualify on your current health. Compare both before deciding. Don't cancel existing coverage until a new policy is approved and in force.
Choosing a term policy with conversion in mind
When comparing term policies, ask: How long can I convert? Until what age? Which permanent products can I convert to? Can I convert part of the coverage? Two policies with similar prices can have very different conversion rights. Termco agents walk through these details with you. Start with your estimates, or read term vs. whole life first.
About the prices on this page. Every price shown is an example estimate from Termco's own pricing model, the same one behind our quote tool. It's calibrated to typical published term rates from insurers rated A- or better, but it is not a quote from any insurer, not an offer of insurance, and not a guarantee. Your actual rate depends on the insurer and its underwriting of your full application.
See estimates for your age and health
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Frequently asked questions
Can I convert my term life insurance to whole life?
Often, yes, if your policy has a conversion privilege and you're within its deadlines. You can usually convert without a medical exam, but the new premium is based on your age at conversion.
Do I need a medical exam to convert term life insurance?
Usually not. The point of a conversion privilege is that you can switch to permanent coverage without proving you're still healthy.
How much does it cost to convert term to permanent?
More than your term premium. Permanent coverage is priced for lifelong protection and based on your age when you convert. Converting only part of the coverage can keep the cost manageable.
When does the conversion option expire?
It depends on the policy. Common limits are a set number of years, the end of the term, or a maximum age, whichever comes first. Check your policy's conversion provision.
Related guides
- Term Life Insurance After 50: What It Costs and How to Buy
- What Disqualifies You From Life Insurance? Common Reasons for a Decline
- How Is Term Life Insurance Priced? The Factors That Set Your Rate
- How Much Is $500K Term Life Insurance for a 40-Year-Old?
- Term life insurance by state
This page is general information, not medical, legal, tax or underwriting advice. Underwriting decisions are made by each insurer and vary by insurer and individual.