What does "convertible term" mean in life insurance?

A "convertible term" policy in life insurance allows the policyholder to convert their term life insurance into a permanent life insurance policy, such as whole life or universal life, without the need for medical underwriting at the time of conversion. This feature offers significant advantages, particularly if the policyholder's health status has changed since the original purchase of the term policy. By not requiring additional medical evidence, the policyholder can secure permanent coverage despite any potential health issues that may have arisen over time.

This ability to convert is especially valuable for individuals who may initially choose term insurance due to its lower premiums but later want the stability and lifelong coverage that permanent insurance provides. The terms and conditions for conversion, including the time frame within which the conversion must occur, can vary by policy, but the critical aspect is the simplified process of moving to a permanent policy without risking health-related complications.