Conversion Privilege
Definition
- A provision available in some insurance policies where the insurer agrees to renew, update, or convert the policy at the end of its term with level premiums (for an agreed to amount of time) and without a medical examination, regardless of the policyholder's health status. For example, most term life insurance policies include a conversion privilege option, giving the policyholder the opportunity to convert to a permanent life insurance policy without any medical exams.
Synonyms
upgrade privilege, change, provision
Related Terms and Acronyms
- Convertible Life Insurance — Definition,
- A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
- Guaranteed Renewable — Definition,
- An insurance policy that gives the insured the option to renew the policy at the end of the its term, however the insurer has no restrictions on raising premiums.
- Insurance Renewal — Definition,
- Extending the term length on an insurance policy.
- Level-Premium Insurance — Definition,
- Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
- Pre-paid Insurance — Definition,
- A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
- Re-entry — Definition,
- The option to renew coverage at the end of a term, generally with level premiums.
- Without Evidence of Insurability — Definition,
- Applying for insurance coverage without the insurer requiring the individual to take a medical examination.
