Conversion Privilege

A conversion privilege is a provision in a term life insurance policy that allows the policyholder to convert to a permanent policy — such as whole life or universal life — without undergoing a new medical exam or proving insurability. Conversion must typically occur before the term policy expires or before the insured reaches a specified age (often 65 or 70). The permanent policy is issued at standard rates based on the insured's original issue age, regardless of any health changes that have occurred. This feature is particularly valuable for policyholders whose health declines during the term period, as it preserves their access to permanent coverage. Many policies convertible (terms vary by carrier).