What Is Convertible Life Insurance?

Convertible life insurance, also known as convertible term life insurance, operates through a conversion rider attached to a term life policy. This allows you to convert term life insurance to permanent coverage without a new medical exam.

The process ensures continuity of coverage, allowing the policy to adapt as your needs or health status change. When you convert a term policy to permanent coverage, you won't face interruptions or denials based on health issues that developed since your original policy was issued.

This feature offers a safeguard against becoming uninsurable due to health changes. Converting term to permanent life insurance involves a predetermined conversion period during which you must decide to make the switch.

Partial conversion is a flexible feature within convertible term life insurance policies. This approach allows you to convert a portion of your term life policy into permanent coverage while maintaining some term insurance.

It offers a balanced solution for those who need both temporary and lifelong protection. For example, if you have a $500,000 term policy, you could convert $200,000 into permanent coverage while keeping $300,000 as term insurance.

This flexibility ensures coverage continuity while adapting to changing financial responsibilities. But some insurance providers require a minimum conversion amount, while others may not allow partial conversions.

When converting a term life insurance policy to permanent coverage, understand the potential costs involved. Generally, no explicit fees are associated with the conversion itself, but the premiums for the new permanent policy will typically be higher than those for the original term policy.

This increase reflects the extended coverage duration and the addition of a cash value component in permanent policies. The cost to convert from term to permanent life insurance can vary, but the absence of medical underwriting typically offsets potential cost increases due to health issues.

Always review the new policy details and premium adjustments. Evaluate whether the new premiums fit your budget and financial goals.

Like any financial product, convertible life insurance has advantages and potential downsides. By examining the pros and cons of this coverage, you can decide if it aligns with your personal needs and long-term financial goals.

Insurance providers now offer online applications for convertible life insurance, allowing you to compare and purchase coverage quickly. For those who prefer a more traditional approach, contacting an insurance agent directly offers a personalized experience.

Agents can discuss your specific needs and present suitable options. They can also help you understand the terms and guide you through the application process.

Whether you opt for online applications or direct agent guidance, accessing convertible term life insurance is straightforward. Both methods provide avenues to secure a policy that offers the flexibility of conversion, ensuring you have coverage that adapts to your life's changes.

If convertible life insurance doesn't align with your specific needs or preferences, there are other options to consider. Each offers unique features and benefits, catering to various financial situations and coverage needs:

• Level term life insurance: This policy provides coverage for a predetermined period, with premiums that remain constant throughout the term. It can be an ideal choice for those seeking stability in their payments and coverage needs that align with a specific timeframe, such as the duration of a mortgage.
• Decreasing term life insurance: With this option, the death benefit gradually diminishes over the policy's term. It's well-suited for individuals whose financial obligations are expected to decrease over time, such as parents with children who will eventually become financially independent.
• Permanent life insurance: If lifelong coverage and the potential for cash value accumulation are your priorities, you might opt to purchase permanent coverage directly. Permanent coverage comes in the form of whole or universal life insurance. Unlike term policies, permanent life insurance doesn't expire, providing continuous protection.
• Partial conversions: This approach allows you to convert a portion of your term life policy into permanent coverage, maintaining some term coverage. It offers a balanced solution for those who need both temporary and lifelong protection.
• New term life policy: If your needs have changed, but you still prefer term coverage, obtaining a new term life policy tailored to your current situation might be the right path.
• Burial insurance: For those primarily concerned with covering final expenses, burial insurance offers a simple and affordable solution. This coverage ensures that funeral costs and related expenses are handled, helping ease the financial burden on loved ones.

Convertible life insurance is designed for individuals who initially opt for term life policies. Over time, these policies offer a conversion option, allowing policyholders to switch from term to permanent coverage without undergoing additional medical examinations.

This guide can help you understand how it works and evaluate if it could be a useful addition to your financial plan. Having a conversion provision may benefit those who anticipate that their financial needs or health status may change and want to ensure continuous protection.

Compare offers from various insurers to find the best policy for you.

We addressed common questions to enhance your understanding of convertible life insurance.

Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction ratings, financial stability reports and product offerings to determine the best life insurance companies for various needs.

Recency
Coverage costs and company information for life insurance providers were updated in 2025.

Methodology

MoneyGeek created a scoring system to compare life insurance companies across five categories. We chose to review these companies based on their broad national coverage and ability to provide an online quote.

MoneyGeek's Scoring System

Companies can earn up to five points in each category. We use these category scores to calculate an overall MoneyGeek score out of 100.

We applied the following weightings to score insurers:

• Affordability: 30%
• Financial Stability: 25%
• Buying Process: 20%
• Customer Satisfaction: 15%
• Product Diversity: 10%

Each company's score incorporates the following:

• Cost data from online quotes
• Financial strength ratings from AM Best and number of years in business
• Customer satisfaction data from the National Association of Insurance Commissioners (NAIC) complaint index (we reviewed annual complaint data from 2020 to 2022, the most recent year available)
• Buying process tools, such as online product materials and multiple payment options
• Diversity of life insurance products offered

Sample Customer Profile

MoneyGeek used a standard profile to obtain life insurance quotes:

• 40-year-old man
• Nonsmoker
• 5 feet 11 inches tall and 175 pounds
• Excellent health rating

Premiums are based on the standard profile unless otherwise noted. We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect a variety of quotes and determine the best life insurance company for several types of customers.

We also collected quotes for term life insurance with varying term lengths and coverage amounts. We identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was initially collected.