GENERAL KNOWLEDGE

Detailed explanation-1: -Typically, convertible insurance deals with a level-term insurance policy that can be converted into a permanent/cash value policy that may be some form of whole life or universal life. The contract will state how long the convertible options can be done.

Detailed explanation-2: -Some people purchase term life insurance policies for coverage until retirement. But many also realize they would still like coverage once their terms expire. Convertible term policies allow people to switch to permanent coverage options when the time comes.

Detailed explanation-3: -A convertible level term policy works precisely the same way – but it has a provision or “rider” that gives you the option to convert to a permanent life policy later on. If you don’t exercise the conversion option, the policy will continue to protect you until the end of the term with no change.

Detailed explanation-4: -Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.