Converting Term To Whole Life Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Can You Convert Term Life to Whole Life?

Yes, You Can Convert Term Life to Whole Life

It is possible to convert term life insurance to whole life insurance. This process allows policyholders to change their temporary coverage into a permanent one without needing a new medical examination.

Converting Term To Whole Life Insurance

Pros of Converting Term Life to Whole Life

  1. Permanent Coverage: Whole life insurance provides lifelong coverage, unlike term life which is limited to a specific period.
  2. Cash Value Accumulation: Whole life policies include a savings component, where a part of your premium builds cash value over time.
  3. Fixed Premiums: Premiums for whole life insurance are typically fixed and do not increase with age.
  4. No Medical Exam Required for Conversion: When converting from term to whole life, most insurers do not require a new health examination.

Cons of Converting Term Life to Whole Life

  1. Higher Premiums: Whole life insurance premiums are significantly higher than term life premiums.
  2. Complexity: Whole life policies can be more complex, with components like cash value and dividends that might be difficult to understand.
  3. Lower Death Benefit for Same Premium: For the same premium amount, the death benefit in a whole life policy may be lower compared to a term life policy.
  4. Investment Returns May Vary: The cash value’s growth depends on the policy’s terms and market conditions, which can vary.
Converting Term Life Insurance To Whole Life Insurance


Converting term life to whole life insurance can be beneficial for those seeking permanent coverage and a cash value component. However, it comes with higher premiums and added complexity. Carefully weigh these factors to determine if this conversion aligns with your insurance needs and financial goals.

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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.

Is permanent life insurance cheaper than term life insurance?

Term life insurance offers protection for a particular length of time and is much less expensive than permanent life insurance, accumulates money value, and adds additional benefits.

Is it a good idea to convert a term life insurance to a permanent one?

Converting to a permanent life insurance policy from your term coverage could save you time and money if you have seen changes in your health. In addition, you don’t need to go through the underwriting process again, making it a precious option for preserving your coverage without any further hassle.

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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