Term to Perm

No, it's not a new 'Major' hairstyle worn by Victoria Beckham. It's something more exciting than that. We're talking about life insurance, baby! Nearly all term life insurance policies issued today include a provision that allows the policy owner to convert the policy to a permanent type policy (e.g. universal life, whole life, variable life, etc.). While the rules vary by insurance company, the basics are fairly universal. The coverage amount of the new permanent life policy cannot exceed the coverage amount of the term life policy. The new permanent life policy is usually issued at the insured's current age at the time of conversion. The insured does not typically have to provide evidence of insurability for conversion. Most term life policies allow the conversion to occur at any time d