What is the definition of Convertible Term Insurance Policy?

A Convertible Term Insurance Policy is a kind of term life insurance that gives the policy owner the option of shifting into a permanent life insurance plan (also called a whole life insurance plan).

There are certain conditions to be met before the term insurance is converted into whole life insurance. However, with Convertible Term Insurance, the insurance company is bound to renew the insured person's coverage, even when there are changes to his age and his health.

The advantage of a convertible term insurance plan is that the insured person can start out with low insurance premiums (as term life is cheaper than whole life insurance). And then, it gives him the privilege to convert to a whole life plan without having to go through the screening process usually done before a new policy is issued.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability