Convertible term

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Convertible Term

A term life insurance policy that the policyholder may convert into a whole life insurance policy without a health exam. A whole life insurance policy carries more risk for the insurance company, especially if there is no health exam to help determine the premium. As a result, convertible term policies have higher premiums at the outset than other term life policies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Convertible term.

A convertible term life insurance policy can be converted into a permanent life policy at some point in the future without requiring you to pass a health screening exam.

A convertible term policy is generally more expensive than a regular term policy from the same insurance provider.

Like other term insurance policies, a convertible term policy remains in force for a specific period of time, or term, and can usually be renewed for an additional term, though the premiums typically increase with each renewal.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Convertible-term policies can be converted to permanent policies covering an entire life.
Convertible-term assurance: This allows you to convert your term policy into an investment policy at a later date.