Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

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.

Full Bio →

Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Feb 26, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from top life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

The Facts of Life

  • A term conversion rider gives consumers the ability to convert their term life insurance policy into a whole life insurance policy without additional underwriting or a medical exam
  • This is a great rider for younger people to include in their policy so they can get cheap life insurance at the moment and later convert their policy to a more comprehensive whole life policy
  • A term conversion rider can help you lock in life insurance coverage for the rest of your life

A term conversion rider gives the insured person the ability and option to convert their term life insurance policy into a whole life or permanent insurance policy at any time they choose.

Term conversion riders can help you lock in life insurance coverage for the rest of your life even if you can’t afford the premiums associated with whole life insurance policies at this moment in time.

For this reason, term conversion riders are very popular with young families who want to start getting life insurance coverage but may not have the extra money to afford a whole life policy.

If you’re ready to compare life insurance rates with term conversion riders, enter your ZIP code above.

How does a term conversion rider work?

The term conversion rider is really simple. This insurance rider allows policyholders to turn their term life insurance policies into whole life insurance policies.

Whole life insurance policies are more expensive, offer coverage until death, and even have a cash value. Your life insurance company may offer you a term conversion credit as an incentive to convert your term life insurance policy.

A term conversion credit will help reduce the more expensive costs of the whole life insurance policy initially. Typically, these conversion credits help reduce the costs of the whole life insurance policy for the first year of the converted policy.

Enter your ZIP code below to compare cheap life insurance rates.

 Secured with SHA-256 Encryption

What are the pros and cons of converting term life to whole life insurance?

As far as cons go, the only major con is that whole life insurance policies cost a lot more money than term life insurance policies. However, if your insurer offers you a term conversion credit, you may be able to reduce these costs initially.

Average Annual Rates of Whole Life Insurance vs. Term Life Insurance by Age and Gender
Age and Gender of the InsuredWhole Life Average Annual Rates20-Year Term Life Average Annual Rates
Male, Age 30$4,015$228
Female, Age 30$3,558$193
Male, Age 40$6,042$341
Female, Age 40$5,413$289
Male, Age 50$9,432$842
Female, Age 50$8,440$654
Get Your Rates Quote Now
Compare RatesStart Now →

The pros to converting a term life insurance policy to a whole life insurance policy are many. First, whole life insurance policies last until you die. Term life insurance policies only last the length of their term.

Whole life insurance policies have a cash value that grows over time as you make your premium payments. This cash value can be borrowed against tax-free should your financial situation change, and you need cash assistance.

The final pro to converting your term life insurance policy to a whole life policy is that you will not have to undergo additional underwriting or another medical exam. This means you can ensure you have quality life insurance coverage for the rest of your life and only go through one medical exam when you are younger.

You can learn more about the different types of life insurance and their pros and cons at the Insurance Information Institute.

If you’re ready to buy life insurance with a term conversion rider, enter your ZIP code below to compare life insurance with term conversion rider quotes.