What is a convertible term in life insurance?

A convertible term in life insurance refers to a type of term life insurance policy that offers the policyholder the option to convert their term policy into a permanent life insurance policy without undergoing additional medical underwriting or proving insurability. This feature is highly valuable for individuals whose health may deteriorate over time; being able to convert to a permanent policy ensures they can continue their coverage even if they develop health issues that would prevent them from obtaining new insurance.

This flexibility is one of the key benefits of convertible term insurance, as it allows policyholders to adapt their coverage to meet changing life circumstances. The conversion can typically be done within a certain timeframe or before the end of the term, depending on the policy terms. Thus, a convertible term policy provides the security of having the option to secure lifelong coverage without any additional qualifying hurdles at the time of conversion.