| Convertible term insurance is a type of term life | | | | permanent life insurance, because this policy has |
| insurance, it is also called guaranteed renewable or | | | | accrued cash value to enable him to have saving, so |
| conversion privilege or guaranteed insurability. The | | | | that he can plan a long-term protection to his family. |
| policyholder is allowed to convert the policy to other | | | | The premium of this policy is affordable, the procedure |
| type of permanent life insurance without any penalty | | | | of conversion is simple, no underwriting is necessary, |
| or evidence of insurability. | | | | medical examination is not required. |
| The policyholder may convert this policy to a whole life | | | | In general, convertible life insurance is understood to be |
| or endowment life insurance with a higher premium, | | | | an example of guaranteed renewable insurance |
| and he can do the conversion at any time he wishes | | | | coverage, as long as the premiums are paid on time, |
| and the new premium will base on the age at the time | | | | the policy will remain in force and the option of |
| of the conversion. | | | | conversion will remain possible. However, the policy |
| This policy is often initially purchased when the insured | | | | can remain as a term policy, converting a term policy |
| is young, and at this stage a convertible term insurance | | | | to a permanent insurance is not mandatory. This policy |
| may provide sufficient coverage to meet simple | | | | is seldom heard of, buyers are advised to find out |
| needs. At older age this form of policy may not be | | | | whether it is suitable for him before purchase. |
| sufficient so the insured can upgrade his policy to | | | | |