What is the conversion privilege in term life insurance?

The conversion privilege in term life insurance allows the policyholder to convert their term policy into a permanent life insurance policy without the need for evidence of insurability. This means that the policyholder can transition from a term plan, which is typically only in effect for a specified period, to a permanent plan that provides lifelong coverage. This feature is particularly significant for individuals who may experience a change in health status that could affect their ability to obtain new insurance coverage.

The conversion privilege provides peace of mind, allowing policyholders the flexibility to secure permanent coverage at the end of their term policy, regardless of any changes in their health. This is a valuable option, especially for those who want to ensure that they have continuous life insurance protection as they age or as their personal circumstances change.