What does term conversion in life insurance enable a policyholder to do?

Term conversion in life insurance allows a policyholder to convert a term life policy into a permanent life policy. This is significant because term life insurance typically provides coverage for a specific period, whereas permanent life insurance offers coverage for the policyholder's entire life, along with a cash value component that grows over time.

When a policyholder opts for term conversion, they leverage the opportunity to continue their life insurance coverage beyond the initial term without having to undergo a new medical examination or provide evidence of insurability. This is particularly beneficial for those who may have developed health issues during the term period, which could affect their ability to obtain a new policy.

The ability to convert to a permanent policy provides added security and flexibility, allowing individuals to transition their life insurance needs as their circumstances change.