Term Conversion Rider Life Insurance

Term conversion rider life insurance adds flexibility to your life insurance policy without much additional cost, if any. Converting from term life insurance to permanent life insurance can help you build cash value in addition to your death benefit. Convertible life insurance often offers policyholders updated policies without completing another medical exam or other underwriting procedures.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jul 19, 2021

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Quick Facts

  • Term conversion rider life insurance rates are often the same as traditional term life insurance rates
  • Converting term life insurance to permanent life insurance can help you build cash value but at a higher monthly cost
  • Term life insurance conversions could prevent excessive price increases due to changes in health

Choosing term conversion rider life insurance can help you save money without worrying about whether you need term vs. permanent life insurance.

Buying life insurance doesn’t have to be hard. We’ll guide you through the pros and cons of converting term life to whole life or other permanent life insurance options.

Wondering if you’ll qualify for affordable term conversion rider life insurance? Start by comparing term life insurance rates using our free quote tool above.

What is term conversion rider life insurance?

Before you buy term conversion rider life insurance, it’s important to know a myriad of life insurance terms such as death benefits, cash value, beneficiaries, and riders.

What is a rider on a term life insurance policy? A rider is a special feature added to a life insurance policy that usually offers flexibility to policyholders.

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There are many types of riders designed to accommodate the needs of different policyholders. So, what is a conversion option of term life insurance?

In this case, a term conversion rider allows policyholders to convert a term life insurance policy into a permanent policy without being required to go through all of the underwriting steps again.

Should you convert term life insurance to permanent?

There are a handful of reasons to choose convertible life insurance, according to the NAIC. Term life insurance is typically the most affordable life insurance policy on a monthly basis whereas permanent life insurance can be more costly.

If there have been favorable changes to your financial situation, many people prefer building cash value through permanent life insurance. These aren’t the only circumstances to pursue a term life conversion though.

You might also consider converting from term life insurance to whole life insurance if:

  • You are nearing your conversion expiration date
  • You are in worse health than when you purchased your policy
  • You are ready to commit to lifelong life insurance

Many policyholders choose term life insurance because it requires less commitment and is considered the most affordable. Converting to whole life insurance requires an endless commitment.

How do you convert a term life insurance policy?

If you’re wondering how to convert your life insurance policy from term to permanent, you’ll have to speak with your insurer. Some life insurance providers offer free conversion riders.

Companies like State Farm and Prudential offer complimentary conversion riders to make the switch easy for policyholders. Sometimes, term conversion rider life insurance rates are more expensive.

Most life insurance riders cost an additional monthly premium, so you’ll need to be sure to look into your provider’s policy on term life insurance conversions.

Nowadays, term life policies that have the ability to be converted to permanent coverage are more prevalent and may offer additional incentives as insurers credit previous payments to your new policy.

If your life insurance policy is through an employer or other group, your group life insurance conversion rights may be different from a company’s standard policy.

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Term Life Insurance Conversion: The Bottom Line

For those that are only ready to commit to term life insurance, having a term life insurance conversion option could be a helpful resource without any changes to your term conversion rider life insurance quotes.

Ready to start comparing term life insurance rates? Get personalized rates for life insurance with a term conversion rider in just a few clicks using our free quote tool below.

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