What’s a term-to-perm conversion?
It’s when you turn all or some of your term life policy into a permanent life policy. This helps lock in coverage for life without another health exam or underwriting.
Who can convert?
You can usually convert your term policy after its first anniversary as long as it’s in good standing. Some restrictions may apply.
For more details, review your policy.
When you should consider converting
Here are some examples of when it may make sense.
- Your policy’s initial term is ending soon.
- Your health has changed or you’d rather not go through another medical exam.
- Your financial situation has changed since you took out your term policy.
- You want coverage that’s guaranteed to last for the rest of your life.
How switching to a permanent policy could help you
With whole life insurance, you may be able to:
- Pay off remaining debt so it’s not left to loved ones.
- Care for family members with special needs.
- Pay for funeral and final expenses.
- Leave a financial legacy for loved ones, your business or charity.
- If your policy has cash value, you may be able to use it to supplement retirement income.
How much coverage should I convert?
It depends on your financial goals and needs.
Some people want enough permanent coverage to help support their children’s education or spouse’s retirement. Others simply want to ease the burden on loved ones after they pass.
What happens to the term coverage I don’t convert?
You can choose whether you want to cancel your remaining term coverage or keep all or some of it. To maintain your term policy, you need to keep at least $100,000 of coverage.
Convert your term life policy FAQ
Generally, the earlier you convert your term policy the lower the cost will be for your new permanent policy.
You can keep them the same or change them. View your beneficiaries.
If you cancel or convert your entire term policy, your child rider will move to your new permanent policy. If you keep your term policy, the child rider will stay with it.