Converting Term Life to Permanent: A 60+ Guide

Converting Term Life to Permanent Coverage After 60

If your term life insurance policy is nearing its end, you might be wondering what comes next. Many assume they either lose coverage or must buy a new policy—often at a much higher cost. But you may already have a valuable option built into your existing policy: term conversion.

Think of your term policy like renting an apartment—providing crucial coverage for a set period but offering no lasting value once the term expires. Permanent life insurance, by contrast, is like owning a home. It lasts a lifetime and builds cash value—equity within your policy that grows and can support your financial future.

What is a 'Term Conversion' and Why is 'No Medical Exam' the Magic Phrase?

Inside your term policy, there may be a “conversion privilege.” This allows you to switch your temporary coverage to a permanent plan, often without a medical exam. That’s the magic: no new health questions, no risk of denial, and your eligibility is guaranteed based on the health rating you received when you first bought the policy.

Your new premium will reflect your current age, but it’s calculated using your original health status, often saving you thousands if your health has declined. This is a big advantage for seniors over 60 who might otherwise struggle to qualify for affordable coverage.

3 Key Reasons to Convert Your Term Policy After 60

Converting your policy makes sense if any of these apply:

1. Your health has changed. If a new medical condition makes buying new coverage expensive or impossible, conversion locks in coverage based on your past good health.
2. You have a lifelong financial need. Term policies are great for temporary needs like a mortgage. But if you want to protect a partner, a child with special needs, or create a legacy, permanent insurance offers ongoing security.
3. You want to cover final expenses. A smaller permanent policy guarantees funds for funeral costs, easing financial stress on your loved ones.

Your Step-by-Step Guide to Converting Your Policy

Ready to explore? Here’s how to get started:

1. Find Your Window: Check your policy or contact your insurer to confirm your conversion deadline. Most policies require you to convert before the term ends or before you reach a certain age.
2. Request Your Options: Ask which permanent plans you can convert to.
3. Review the Cost: The insurer will provide a premium quote based on your current age—no new medical exam needed.
4. Make It Official: If it fits your needs, sign the paperwork, and your lifelong coverage begins.

How Is the Cost of a Converted Policy Calculated?

When you convert, premiums are based on your attained age—your current age, not the age you were when you bought your term policy. This means premiums will be higher than what you paid initially.

However, the crucial benefit is that your health rating is locked in from your original policy. Even if your health has declined, your premium reflects your past good health. This can be a huge financial advantage compared to applying for new coverage today.

Plus, unlike term insurance that expires or renews at a higher rate, your permanent policy’s premium is typically level and locked in for life. You gain lifelong protection with predictable payments.

Your Next Step: Get a Clear Answer in 30 Minutes

The end of your term policy doesn’t have to mean losing coverage or paying high premiums. The conversion privilege can bridge you to permanent, lifelong protection—often without a medical exam—and give you peace of mind.

Your next move is simple: find your policy documents and call your insurance provider. Ask:

"Does my policy include a conversion option, and when is the deadline to use it?"

That one call could open the door to financial security for your family for years to come.

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