Convert Term to Permanent Life Insurance
Convert Term to Permanent Life Insurance
Term life is simple and affordable—until you need coverage that lasts beyond the term. A built-in conversion rider lets you exchange your term policy for a permanent policy without a new medical exam. This guide explains how conversion works, why timing matters, and when a partial conversion makes the most sense. If you’re comparing strategies, skim the pitfalls in our overview of common mistakes people make when buying life insurance so you don’t miss key details in your contract.
Instant Quotes: See Term Options Before You Convert
Price multiple term lengths and riders side by side. Then decide whether to keep term, partially convert, or fully convert to permanent.
How Term-to-Permanent Conversion Works
Most quality term policies include a conversion privilege. Within a set window, you can swap term coverage for permanent coverage (e.g., whole life or guaranteed universal life) with no new underwriting. Your insurability is based on your original approval—even if your health has changed since then.
For families facing new medical diagnoses, conversion can be the difference between losing coverage and securing it for life. If you’re navigating a specific condition, review our guide to life insurance with diabetes to see how we time partial conversions alongside updated term coverage.
Why and When People Convert
- Estate & legacy needs: Permanent policies provide liquidity for taxes or inheritance plans over decades.
- Special-needs or lifelong support: Guarantees a benefit beyond a term timeline.
- Health changes after purchase: Lock in lifetime coverage without re-proving insurability.
If you’re weighing employer coverage against a personal policy during this decision, compare the tradeoffs in our guide to group vs individual life insurance before you convert.
Conversion Deadlines (Don’t Miss the Window)
Conversion windows vary by carrier—often the first 10–20 policy years or up to a specific age. Waiting until the final year can limit which permanent products you can choose.
- Partial conversion: Convert a portion now for lifelong needs and keep the rest as budget-friendly term.
- Phase-in approach: Convert slices over time to balance guarantees and cash flow.
Need help sizing what to keep as term? Use the life insurance calculator to dial in amounts before you lock anything permanent.
Coordinating Beneficiaries and Long-Range Planning
When you convert, update beneficiary language and ensure it matches your broader plan (trusts, special-needs considerations, or charitable goals). For inspiration on how permanent coverage supports bigger objectives, read the role of life insurance in modern estate planning and align your designations accordingly.
Case Study: Partial Conversion After a Health Change
Profile: Laura (age 44) owns a 20-year $500,000 term policy from age 30. Newly diagnosed with Type 2 diabetes, she wants lifetime coverage for legacy goals while keeping premiums manageable.
Strategy: Convert $150,000 to a guaranteed universal life policy (no exam, no new underwriting). Keep $350,000 as term to finish the high-expense years.
Outcome: Laura locks in lifelong protection for estate needs and maintains affordable term protection until her youngest finishes college. For fresh term comparisons during a job change, see how to choose the best term life policy before you adjust amounts.
Talk Through Your Conversion Options
We’ll review your policy’s conversion language, check eligible permanent products, and map scenarios: keep term, convert part, or convert all—so you’re not rushed by deadlines.
Get Clarity on Conversion
We’ll compare keeping term versus partial or full conversion, and align the plan with your beneficiaries and budget.
Action Steps: Make the Right Move
- Confirm your policy’s conversion deadline and eligible permanent products.
- Run updated quotes using the tool above; benchmark the cost of partial vs. full conversion.
- Right-size the permanent slice with the life insurance calculator.
- Update beneficiaries and integrate with your long-range plan.
FAQs: Converting Term to Permanent Life Insurance
Can I convert part of my term policy instead of all of it?
Yes. Partial conversion locks in lifelong coverage for estate or special-needs goals while keeping the rest as lower-cost term.
Do I need a medical exam to convert?
No. Conversions typically require no new medical exam or underwriting—your original approval carries over.
Which permanent products can I convert into?
It depends on your carrier and timing. Common options include whole life and guaranteed universal life. Some carriers restrict choices later in the term.
When should I consider converting?
Don’t wait until the final year. If your health has changed—or you know you’ll want lifelong coverage—convert earlier or in stages.
How does this fit with coverage through my employer?
Employer coverage can change or end when you change jobs. If you need lifelong benefits, own a personal policy and use group coverage as a supplement. See our comparison of group vs individual life insurance.
