Answer:

If you own convertible term life insurance, your policy contains a provision that allows you to convert the policy to permanent life insurance (cash value insurance) such as whole life, variable life, or universal life. Convertible term policies typically state that conversion must occur within a certain time after the policy is issued, or before you reach a certain age. Once the policy is converted, you enjoy all the benefits of cash value life insurance, including lifetime coverage, a more stabilized premium structure, and the tax-favored buildup of cash value. (You will pay a higher premium for the cash value insurance.) And, you won't be required to provide proof of insurability at the time of conversion.

For instance, if you have a $100,000 term life insurance policy, you can opt to convert $50,000 to permanent life insurance while keeping $50,000 in term life insurance. Then, you can either keep the remaining term insurance until the term period expires, or later convert the $50,000 term policy to permanent life insurance, depending upon your needs.

The premium you pay for the permanent life insurance policy will usually be based on your age at the time of conversion (attained age), but in some cases it may be based on your age when the original policy was purchased (original age). Ask your insurance agent for details.