Utah Life Producer Practice Exam

The conversion feature in a term policy allows policyholders to convert their term life insurance into a permanent life insurance policy without undergoing additional underwriting. This is particularly beneficial for the insured as it provides an opportunity to secure lifelong coverage even if their health status changes after the initial application. It offers a level of financial security and peace of mind since the individual does not have to re-qualify based on health conditions that may have developed since the original policy was issued.

Choosing to convert to a permanent policy typically means that the individual can keep the coverage after the term expires, and they do this at the insurer’s rates as per their age at the time of conversion, which usually reflects a simpler process than applying for a new policy altogether. The conversion feature is especially valuable for those who may experience changes in health that would make obtaining new insurance difficult or more expensive.