Term Conversion

Term conversion is the exercise of a conversion privilege — a provision in a term life insurance policy allowing the policyholder to exchange the term policy for a permanent policy (such as whole life, universal life, or GUL) without new medical underwriting. The permanent policy is typically issued at the insured's original issue-age rates or attained-age rates depending on the carrier, and no evidence of insurability is required. Conversion must be requested within the conversion period defined in the policy — often before a certain age (e.g., 65) or before the term expires. Term conversion is particularly valuable for policyholders whose health has changed since the original policy was issued.