Can Term Life Insurance Be Converted to Whole Life?
Quick Answer: Yes — in many cases term life insurance can be converted to whole life, provided your policy includes a conversion option that was built in when you bought it (it cannot be added later). You won't need a medical exam, and the insurer cannot raise your rate because your health has declined. Your premium will increase, because whole life costs more than term and because the new rate is based on your attained age. Most carriers require you to convert within a set window — often 10–20 years into the term, or before age 65–70.
Can term life insurance be converted to whole life? In many cases, yes – we’ll explain what you need to know, and when this might be a good idea. If you’re still shopping for a term policy and want the chance to convert, make sure you tell your agent. If you already have a term policy and aren’t sure if it includes a conversion option, your agent can look this information up for you. This process is known in the industry as a term conversion.
Term Life vs. Whole Life
First, let’s take a look at the differences between the two policy types:
Term life is the simplest and most affordable type of coverage. You select a term length for your coverage, and a death benefit amount. The life insurance company sets a price for your coverage based on your age, health, and lifestyle. That price is locked in for the length of your term, no matter whether that’s 5, 10, 20, 30, or 40 years. When your term ends, so does your coverage. Depending on your insurer, you may have the option to convert your policy to a permanent whole life policy. Also depending on your insurer, you may have the option to renew your term policy on an annual basis, with the price increasing sharply with each renewal. To learn more, check out our post on what happens to term life insurance if you don’t die.
Whole life covers you for your entire life. Unlike term life, it doesn’t expire. It also comes with a cash value component – an account attached to your policy that fills up over time with portions of your payments as well as interest paid by your insurance company. That cash value grows tax-deferred over time. Later, you can borrow against it with a policy loan from your insurer, or you can make a partial withdrawal. You only owe income tax on any cash withdrawn that is over the amount you’ve already paid into the policy. To learn more, check out our post on using whole life to create wealth.
When people ask, “Can term life insurance be converted to whole life,” they’re generally looking for the two main benefits whole life provides: lifelong coverage and cash value growth. If that’s what you’re looking for, conversion may be a good option for you. Next, we’ll go over how the conversion process works.
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How Term Conversion Works
That depends.
If your term policy includes a conversion option, yes. The catch? That conversion option must be in place when you buy the policy; it’s not something you can add on later. Many insurers offer this option, but you’ll need to check your policy documents to be sure.
If your policy is convertible, you would need to notify your insurer that you’re interested in making the conversion. You may also have the option to convert some but not all of your term policy, so you’ll need to know how much you want to convert, if that’s an option for you. The insurer can give you several quotes to see how much a partial versus total conversion might cost.
One important change to be aware of: your monthly payments will increase, so ask the insurer what the new rate would be. The good news? You won’t have to take a medical exam to convert your policy. The cost will increase, as we mentioned, both because you’re older now than when you bought the policy, as well as because whole life costs more than term life. However, the insurer cannot raise your rates any further if you’ve developed health issues in the meantime. It's worth naming the mechanism precisely: your post-conversion premium is calculated using your attained age — how old you are on the day you convert — not the age you were when you originally bought the term policy. This is why converting earlier in your term generally costs less per month than converting near the end of it.
Have questions about your conversion option? Call us at (800) 521-7873 and we’ll go over all your options with you.
Reasons to Convert Term to Whole Life
Here are some of the reasons why you might want to convert your term policy into something that lasts for your entire life:
- You still have family members who depend on you financially. There are plenty of ways this could happen. Maybe a child moved back home after college. Maybe a child or your spouse became disabled and needs extra care and support. Maybe your family grew after you bought your policy, and you need coverage for longer than you expected. No matter the reason, if you still have people who depend on you to put food on the table and keep a roof over their head, we recommend you continue having coverage.
- You still have financial obligations you don’t want to burden your loved ones with. If you still have debt, for example, you may also want to continue coverage. Life happens, whether it’s an unexpected emergency, medical issue, or unforeseen family situation. Those problems usually take money to solve, and if your plan to pay down debt hasn’t worked out like you thought it would, your coverage may still be necessary.
- Your health has taken a turn for the worse. Life insurance pricing is based on your age, health, and lifestyle. There’s no getting around the fact that you’re older now than when you first bought your policy. And if you’ve had health problems in the meantime, that’s one more reason your rates may be significantly higher than before. If you couldn’t afford to buy a new policy from scratch after your term expires, conversion is one way you can keep your coverage at a more affordable price.
That last point is the heart of it. Term conversion is most valuable precisely when you would struggle to qualify for new coverage. If your health is unchanged and you're still insurable at good rates, always compare the conversion cost against a fresh quote before deciding.
Not sure whether your policy is convertible? Let us help you figure it out Call us at (800) 521-7873 and we’ll go over all your options with you.
Term Conversion Considerations
Before you make the decision to convert, here are a few things to think about:
- Is there a fee? Conversion may or may not be free; it all depends on your insurer. Make sure you ask ahead of time about any costs, and find out how or when they would need to be paid.
- Is there a time limit for conversion? Yes, almost always. Yes, almost always. Some policies allow conversion at any point during the term, but more commonly the window is limited — often the first 10 years of a 20-year policy, or roughly 15–20 years into a longer term. Most carriers also set an age cap, commonly 65 or 70; whichever limit arrives first is the one that applies. Once the window closes, the option is gone permanently. Check your policy documents or contact your life insurance agent to be sure.
- How is the cost of your coverage affected? Whole life costs more because it doesn’t expire and it contains cash value. When you convert, your policy will be repriced – and it will cost you more every month. Ask your insurer what the new monthly cost would be, and make sure you can commit to this new payment amount. You don’t want to convert, only to realize you can’t afford it. If you stop making payments and let your policy lapse, there won’t be any coverage in place to protect your loved ones.
- What would it cost to start over with a new term policy? If you’re still in good health, it may be worth comparing the increased post-conversion rate to the rate for a new term policy. If you only want the coverage to continue for the length of a particular financial obligation (as opposed to until you die), a new term policy may still be less expensive than a converted whole life policy. It’s something to consider if you’re on a tight budget.
Whether conversion is the right decision for you and your family depends on your exact policy, your health, and your budget. We can help you figure it out. Call us at (800) 521-7873 and we’ll go over all your options with you. Or click the button below to get a quote for a new term life policy and see if it might be less expensive to go that route.
Frequently Asked Questions: Converting Term to Whole Life
Can term life insurance be converted to whole life?
Yes, in many cases — provided your term policy includes a conversion option. That option must be built into the policy when you purchase it; it cannot be added later. If your policy is convertible, you can exchange it for a whole life policy without a new medical exam, regardless of any health conditions you've developed since.
Do I need a medical exam to convert term to whole life?
No. Conversion is done without proving insurability, which is the entire point of the feature. Even if you've been diagnosed with a serious illness since buying your term policy, the insurer cannot decline the conversion or raise your rate because of it. Your premium increases only because whole life costs more and because you're older.
How much more expensive is whole life after conversion?
Substantially — whole life can cost several times more per month than the equivalent term coverage. Your new premium is based on your attained age (your age at conversion) and whole life pricing. Converting earlier in your term generally costs less than converting near the end. Always ask the insurer for the exact figure before committing, and confirm you can sustain the payment long-term.
When is the deadline to convert my term policy?
It varies by carrier, but conversion windows are typically limited to the first 10 years of a 20-year policy, or roughly 15–20 years into a longer term, with an age cap commonly at 65 or 70. Whichever limit comes first is what applies. Because missing the window forfeits the option permanently, check your policy documents well in advance.
Is converting to whole life worth it?
It's worth it when your health has declined and new coverage would be expensive or unavailable, when you still have dependents, or when you want lifelong coverage and cash value. It's often not worth it if you're still healthy — a new term policy is frequently cheaper — or if the higher premium would strain your budget to the point of risking a lapse.
Can I convert just part of my term policy to whole life?
Usually, yes. Most insurers permit partial conversions, letting you move a portion of your death benefit to permanent coverage while the rest remains term insurance. For example, you might convert $250,000 of a $1 million policy. This spreads out the premium increase and can be a practical compromise when a full conversion isn't affordable.
References
Conversion windows, age caps, fees, and available permanent policy types vary by carrier and by individual contract. The ranges cited here reflect common industry practice, not a guarantee for any specific policy. Consult your policy documents or a licensed agent for the terms that apply to you. This article is informational and is not legal, tax, or financial advice.
Last updated on: July 13, 2026
