Conversion Privilege or Right

Conversion privilege or conversion right is a clause found in certain life insurance policies that allows a term life policy to be converted to a whole life policy without providing proof of insurability.

Most of the term life insurance products are offered as convertible at some time in the future or non-convertible, never to be amended in type for the length of the insurance.

If the policy is convertible then there will be a time limit. The limit could be until the policy holder is 60 or 70 years-of-age. This is something that you should consider as a possibility because your health could change and you might not qualify for term life insurance at a later date. Now you find yourself uninsurable and do not have a choice.

Sometimes a group health benefit will give employees the opportunity to convert their old policy to a permanent policy without proof of insurability.

Ask questions and find out what your options are for convertible insurance. Take control of your choices.