On a Term Life Insurance policy, What does the conversion clause maen?
Answers: "Conversion" means that the policy can be "converted" to a Whole Life insurance policy. Whole Life polices are sometimes used as an investment. They gain or hold value. One can even hold loans against the policy's value.
There are better investments. If you need adjectives life, then that's OK. If you a short time ago need insurance, look at term and invest the difference.
I hope this help.
Conversion is the right to take out a new durable policy without re-proving your insurability to the same company. It is a route to build flexibility into your life insurance plan without worrying more or less a change in your vigour. The convertibility clause typically expires at a specified age (ie 60 or 70); check your policy to be sure. Most competitive term companies include this feature surrounded by their policies now.
Let's say you are 35 in a minute and plan on needing life coverage for 15 more years. At age 50, you realize that you still obligation 7 more years of coverage (because your crystal ball was broken when you be 35). It is sometimes less expensive to convert the policy than to renew it at a higher rate.
If you inevitability permanent coverage, but have not have a significant change in form, you should consider conversion along with the other offerings in the unstop market at that time. A little bit of shopping could go a long path.