What can term insurance be converted to during its term?

Term insurance can typically be converted to whole life insurance during its term because many term policies offer a conversion option. This feature allows the policyholder to convert their term coverage into a permanent insurance policy, such as whole life, without needing to prove insurability or undergo a medical examination. This option is beneficial since it allows individuals to secure lifelong coverage while initially enjoying the lower premiums associated with term insurance.

Whole life insurance, as a type of permanent insurance, provides not only a death benefit but also builds cash value over time. This conversion is attractive for those who may wish to have lifelong protection and accumulate savings through cash value, especially as they age or if their health changes.

While other types of permanent insurance, like universal life, also provide lifetime coverage and a cash component, the standard conversion feature is most commonly associated with whole life policies. Thus, converting to whole life is the most widely recognized and implemented option during the term of such policies.