Life Insurance Basics
What is a life insurance conversion privilege?
A conversion privilege allows you to convert a term life insurance policy to a permanent life insurance policy without medical underwriting. The conversion must be done before the term expires and before a specified age (typically 65-70). The conversion privilege is valuable if your health declines during the term.
Key Points
- Conversion privilege: convert term to permanent without medical underwriting
- Must convert before term expires and before specified age (typically 65-70)
- Valuable if your health declines during the term
- Permanent policy: same death benefit as term policy
- An independent agent can help you understand conversion privileges