A Guide to Converting Term Life to Whole Life Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding Term and Whole Life Insurance

Converting a term life insurance policy to whole life insurance can be a strategic financial decision. This guide will walk you through the benefits, processes, and considerations involved in making this change.

Term Life Insurance

Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years. It is often chosen for its lower premiums and simplicity. However, it does not build cash value and expires at the end of the term.

Whole Life Insurance

Whole life insurance, a type of permanent insurance, offers lifelong coverage with fixed premiums. It also accumulates cash value over time, which can be borrowed against or withdrawn.

Benefits And Considerations of Converting to Whole Life Insurance


1. Permanent Coverage

Converting to whole life insurance ensures that you have coverage for your entire life as long as premiums are paid. This is particularly beneficial if you want to provide financial security for your family regardless of when you pass away.

2. Cash Value Accumulation

A portion of your premium payments goes into a cash value account, which grows over time. This cash value can be borrowed against or used as an emergency fund, adding a layer of financial flexibility.

3. Fixed Premiums

Whole life insurance premiums remain consistent throughout the life of the policy. This can be advantageous as it protects you from increasing premiums as you age or if your health deteriorates.

4. No Medical Exam Required

Most insurance companies allow you to convert your term policy to a whole-life policy without undergoing a new medical examination. This is especially valuable if your health has declined since you originally purchased the term policy.

5. Estate Planning

Whole life insurance can be an effective tool in estate planning. The guaranteed death benefit can help cover estate taxes and ensure that your heirs receive a specific amount, providing peace of mind.



Whole life insurance premiums are significantly higher than term life premiums. Assess your budget to ensure you can afford the increased cost.

Financial Goals

Evaluate how a whole life policy fits into your overall financial plan. Consider whether the benefits of permanent coverage and cash value accumulation align with your long-term goals.

Policy Features

Understand the features and benefits of the whole life policy, including how cash value grows and how loans against the policy work.

Converting Term To Whole Life Insurance

Process of Conversion

Step 1: Review Your Policy

Check the terms of your existing term life insurance policy to see if it includes a conversion option. Note any deadlines or age limits for converting.

Step 2: Contact Your Insurer

Contact your insurance provider to discuss your conversion options. They will provide details on the new whole-life policy, including premiums and benefits.

Step 3: Choose the Right Policy

Select a whole life insurance policy that fits your needs and budget. Consider factors like the amount of coverage, premium payments, and the potential for cash value growth.

Step 4: Complete the Conversion

Complete any necessary paperwork and begin making payments on your new whole life insurance policy. Ensure that you understand all terms and conditions before finalizing the conversion.

How We Can Help

At The Annuity Expert, we understand that navigating the complexities of life insurance can be daunting. You want to make sure that your family is protected and that you are making the best financial decisions for your future. We have been an insurance agency, annuity broker, and retirement planner for 15 years, specializing in finding the best solution at the lowest costs.

Our mission is to provide you with personalized advice that is tailored to your unique needs and preferences. We believe in offering lifelong financial security and peace of mind through thoughtful and strategic insurance planning. Whether you are looking to convert your term life policy to whole life or exploring new insurance options, we are here to guide you every step of the way.

Converting Term Life Insurance To Whole Life Insurance

What We Recommend

  • Step 1: Review Your Existing Policy: First, review your current term life insurance policy to determine if it includes a conversion option. This step ensures that you are aware of any deadlines or age limits. By understanding your existing policy, you can make an informed decision about converting to whole life insurance. The main benefit is gaining clarity and a clear path forward.
  • Step 2: Schedule a Consultation: Contact us to schedule a free consultation with one of our experts. During this meeting, we will discuss your conversion options and provide details on the new whole-life policy, including premiums and benefits. The main benefit here is receiving professional guidance tailored to your specific needs.
  • Step 3: Choose and Convert: Once you’ve chosen the right whole life insurance policy, we will help you complete the necessary paperwork and begin making payments. Our team will ensure you understand all the terms and conditions before the conversion is finalized. The main benefit is achieving lifelong coverage and financial flexibility.

Features and Benefits

  • Personalized Advice: Tailored to your unique needs, ensuring the best possible outcome for your financial future.
  • Fixed Premiums: Protects you from increasing costs as you age.
  • No Medical Exam Required: Simplifies the conversion process, especially if your health has declined.
  • Cash Value Accumulation: Provides financial flexibility and an emergency fund.

By working with The Annuity Expert, you ensure that you have a team of dedicated professionals looking out for your best interests. We understand that every individual’s situation is unique, and we strive to provide solutions that are both effective and affordable.

Choosing not to work with us means risking the loss of personalized advice, potential financial security, and peace of mind. On the other hand, collaborating with us ensures that you are making informed decisions that will benefit you and your family in the long term. You will feel confident and secure, knowing that you have taken the necessary steps to protect your loved ones and your financial future.

Contact us today for free advice or a personalized quote. Let us help you make the best decision for your financial future.

Get Free Conversion Advice

Contact us if you need help applying for a life insurance policy. The service is free of charge.

Life Insurance Inquiry

Frequently Asked Questions

Is it worth converting the term to whole life?

While converting your term life insurance policy to a whole life insurance policy is free of charge, it’s important to note that your premium may increase due to the higher risk associated with insuring older policyholders. If you require coverage after the term of your policy ends, it’s worth considering this option.

Does Suze Orman recommend term or whole life insurance?

According to Suze Orman, buying whole life insurance as an investment is not a good idea due to expensive fees and overly conservative portfolios. Therefore, it’s better to keep insurance and investments separate and opt for term life insurance instead of whole life.

Why is whole life more expensive than term?

Although whole life insurance provides more long-term security, its premiums are generally higher than term life insurance. This is because payments are deposited into an account that increases in value over time. On the other hand, term life insurance usually has lower premiums.

What happens when you convert a term policy?

A-to-permanent life insurance conversion is a way to continue your life insurance coverage. If you currently have a term life insurance contract for 10, 15, 20, or 30 years, you may be able to convert it to a permanent policy without requiring a new medical exam instead of letting it expire.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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