No or Limited time to Convert to other Policy Types

Term Life Insurance generally offers an exchange or what’s called a conversion option to another life insurance policy type. For example if you want to exchange your 10 year term plan for a whole life plan with the company that you bought the term life plan from, you can without having to prove evidence of good health. This is something to watch out for when applying for term life insurance coverage.

Many Insurance Companies that offer Mortgage protection through the mortgage company offer no exchange option at all, not a good option for folks that refinance. For Term life plans purchased through an insurance company, whether it be through an agent, the internet or some 1-800 #, there generally is an option for conversion. However, not all conversion options are created equal.

For example, lets say that you obtain a 10-year term policy. Some companies will allow you to convert anytime during the 10-year term and some other companies may only allow you 5 years from the initial policy date to make the change. The best companies will allow you to exchange to another policy anytime before age 65 or ten years, whichever is later.