How to Transfer a Term Life to a Whole Life Policy

Life insurance polices can be converted from term to whole life.

Life insurance comes in different types of policies. The most common are a term policy and whole life policies. If you have a term life insurance policy, you can convert it to a whole life policy for additional benefits. Converting from a term policy to a whole life policy is similar to buying or purchasing a new whole life policy. However, there is no cost up front for you to convert from a term life policy to a whole life policy.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Current policy number

1. Call or email your life insurance company or life insurance agent. You can find the name of your life insurance agent on your policy statement.

2. Provide the representative of the life insurance company or your agent with your current policy number. Tell the representative or your agent that you want to convert your term life policy into a whole life policy.

3. Discuss with the company representative or agent the coverage options that are available. Choose the amount of coverage for your whole life policy.

4. Ask the representative or agent to calculate what the new premium will be for the whole life policy. This is determined by the level of coverage you chose in Step 4. This premium is fixed and will not increase during the life of the policy.

5. Assign beneficiaries for your new whole life insurance policy. The beneficiary will receive the death benefit.

6. Wait for the conversion form to be sent in the mail from the life insurance company or from your agent. Sign the form and then mail it back to complete the conversion process.

Tips & Warnings

• A whole life policy accrues a cash value that you can collect when you surrender or decide to cash out the policy.

• Visit your life insurance agent in person if the office is local to your area.

• A term life policy has a fixed time for the length of the policy.

• A whole life policy is typically more expensive than a term policy, which will increase your premium payment.

References

• Matrix Direcxt: Will You Outlive Your Life Insurance Coverage?
• State Farm: Converting Your Term Life to a Permanent Life Policy

Resources

• New York LIfe: Term or Permanent Life Insurance?