What is a conversion feature and why should I ensure my insurability?
It is important to ensure that you are insurable for your future. You can lock in your insurability when you are young and healthy with an affordable term policy. You will need a policy with a conversion feature. Many carriers tend to have this feature built into the policy when you purchase it.
What is a conversion Feature?
This, in essence, means that you can change your term policy into permanent insurance. Most companies allow you to convert term life to any permanent insurance of your choice. This means you can do a whole life, universal life, or even an index universal life.
How do I use my conversion feature?
In order to use your conversion feature, you will need the policyholder to contact the insurance company. You can ask your insurance agent to help you through this process, however more than likely, you should be able to do this yourself. Please note that the term policy must still be in effect.
Start by contacting the insurance company, this is always going to be the first step of the process.
Ask the representative to help you determine which permanent insurance you are allowed to switch to.
Let the representative know that you want to convert your life insurance policy to a permanent insurance policy and which permanent insurance you want, either whole, universal or index universal life.
The representative should then be able to help you or at least direct your call to the correct person. From there you will have to deal with the carrier. Each carrier has their own way of doing things. They could have more questions or just simply let you know when the conversion will take effect and how much your new premium will cost you.
Will I have to go through Underwriting again?
Nope. That’s what makes a conversion feature so nice. It allows you to get a cheaper term policy for 10, 15 or 30 years. If anything happens during that time, you have the option to make the policy permanent without going through any underwriting or medical testing again.