Looking at my life insurance policy right now. I see conversion in the first few pages. Not clear. What does conversion mean?
It's a term policy
Answers | 1
Conversion refers to the act of changing your term plan into a permanent plan. When you do this, it will be to your advantage if you want to extend the length of the your coverage so that you have it for the rest of your life. Term plans come to an end (or become dramatically more expensive) at the end of the stated term. There is no "extending" of a term contract so that it remains term coverage but goes on for a longer period of time. You are not alone; many consumers have asked me this question over the years. You may convert what you have - without a new exam, and with the same rate class approved on the term plan - to a permanent plan that the same carrier has at that time. Will the cost be greater for the permanent coverage? Yes. Can you convert only a portion of your total face amount? Yes, and that would reduce the cost, too. Some other details exist, such as how long is the conversion period option available to you so that you can still do it at all. If you want to dig into it a bit more, send me a message and I'll help you with it.