Can Term Life Insurance Be Converted to Whole Life?
Can Term Life Insurance Be Converted to Whole Life?
That depends.
If your term policy includes a conversion option, yes. The catch? That conversion option must be in place when you buy the policy; it’s not something you can add on later. Many insurers offer this option, but you’ll need to check your policy documents to be sure.
If your policy is convertible, you would need to notify your insurer that you’re interested in making the conversion. You may also have the option to convert some but not all of your term policy, so you’ll need to know how much you want to convert, if that’s an option for you. The insurer can give you several quotes to see how much a partial versus total conversion might cost.
One important change to be aware of: your monthly payments will increase, so ask the insurer what the new rate would be. The good news? You won’t have to take a medical exam to convert your policy. The cost will increase, as we mentioned, both because you’re older now than when you bought the policy, as well as because whole life costs more than term life. However, the insurer cannot raise your rates any further if you’ve developed health issues in the meantime.
Want to ask a real person all your life insurance questions? Call us at (800) 521-7873 and we’ll go over all your options with you.
