A key feature of term life insurance is the opportunity to convert the coverage to a permanent policy without needing to go through underwriting. However, conversions are something not a lot of agents/advisors mention. Conversions are great opportunities to re-connect with a client and provide permanent coverage. The process is much easier than a normal life application, the turnaround time is quick, and most importantly, the client can’t be declined and won’t be asked any medical questions. There is also typically an option to do a partial conversion, meaning only converting a portion of the term death benefit.
Conversion opportunities vary by insurance company, but many carriers offer the option to convert to a policy that accumulates cash value, or a policy with guaranteed permanent death benefit, and many have one policy that both accumulates cash and maintains a guaranteed death benefit. The window of opportunity to convert will vary from company to company, so it’s important to note the conversion options when evaluating term products with your clients. It’s equally important to track the conversion window once the policy is in force and continuously check in with your clients to discuss if the time is right to convert. Conversions can be a key selling point and something not every advisor talks about. It’s a great way to differentiate yourself as an advisor.
Not all term products and companies are the same- there’s a wide variance of term conversion opportunities out in the marketplace. Give the experts at Wholehan a call with your next conversion case or to discuss conversion options for our term products!