Term insurance in its simplest form is life insurance that stays in effect for a specific number of years. The most common range is from 5 years up to 10 years, and can go up to 30 years. After the time period is up, the policy ends. If the insured person dies within the time period of the plan, the beneficiary listed in the policy would receive the full value of the policy.
Permanent policy
Most life insurance companies have the option to convert the term policy into a permanent policy within a specific period of time. For example, there may be an option to switch within the first 4 years of the policy. This clause is particularly attractive in case you have developed some type of ailment or disease that prevents you from buying additional life insurance. If the term insurance policy includes a conversion clause and it is still within the period you can convert to permanent, then you may do so even though your medical condition may not qualify you under normal circumstances.
Other life insurance policies
Permanent policy
Most life insurance companies have the option to convert the term policy into a permanent policy within a specific period of time. For example, there may be an option to switch within the first 4 years of the policy. This clause is particularly attractive in case you have developed some type of ailment or disease that prevents you from buying additional life insurance. If the term insurance policy includes a conversion clause and it is still within the period you can convert to permanent, then you may do so even though your medical condition may not qualify you under normal circumstances.
Other life insurance policies
