Convertible Life Insurance

Definition

• A term life insurance policy with the option to convert the policy into a permanent life insurance policy such as universal or whole life insurance. When converting policies no additional medical examinations are required, the insured cannot be denied coverage, nor can they be charged additional premiums regardless of their health status.

Synonyms
changeable, able to be changed, modifiable, swappable

Related Terms and Acronyms

• Attained Age — Definition,
  • The current age of an insured individual.
• Conversion Privilege — Definition,
  • An option where an insurance company is required to update, renew or convert an insurance policy with level premiums at the end of the policy's term without a medical exam.
• Future Purchase Option — Definition,
  • A provision that gives the policyholder the option to purchase additional insurance coverage at a future date.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Paid-up Additional Insurance — Definition,
  • The option for a policyholder to purchase additional insurance coverage with additional premiums or policy dividends.
• Permanent Life Insurance — Definition,
  • A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
• Re-entry — Definition,
  • The option to renew coverage at the end of a term, generally with level premiums.
• Single-Premium Life Insurance — Definition,
  • Life insurance where all premiums are paid up front in a single lump sum payment.
• Term Life Insurance — Definition,
  • Life insurance that provides coverage for a set period of time, often from five to forty years.
• Whole Life Insurance — Definition,
  • Permanent life insurance with level premiums for the policyholder's entire lifetime.