By looking at the name, this kind of insurance policy come to an end after a term or a specific period of time. This is usually between 5 and 30 years for many firms offering this service. Once the policy has expired, one may opt to continue and renew the policy to carry on with the coverage. When making a conversion, the policy will have to be written with a clause known as a rider and this one will give the option of converting it to become a whole term life policy. For this to go through, there are a number of processes that will take place. This will include:
Inclusion of the conversion in the policy
Before it goes through, one will need to have option of the conversion included in the policy. It is not all companies that have the rider option and thus one should find out if theirs has it. If the clause is available, the rider option will cost some extra fee. This can be done is a single payment or it can be spread across the life of the first policy. This will depend on the rules and terms of the company that you have used to place your insurance company.
Towards the end of the policy
As the term for the first term life insurance policy is nearing, one will need to contact the firm informing them of the intentions to use the conversion option advantage. Once you have notified the company of your intentions, they will then provide you with a conversion policy form which is supposed to be filled with accurate details. Falsehood is usually taken as a very serious offense and can result to harsh penalties. It should thus be avoided whenever one is providing all the information required. As they provide you with the form, they might as well provide you with details about other steps that you are supposed to take to successfully complete the conversion.
Medical examination request
Before they make the conversion, there are a number of request that they will have to ask from you. One of them is the medical examination. This is a requirement since the company will need to have full report on your current health situation. It will need to know any problems you may have with your body and any problems it might present to them.
Paying the conversion fee
Making the conversion from a term life to a whole life insurance policy will require one to pay a fee. This fee will vary depending on the company that has provided you with the insurance policy. It will also be dependent on the age when the initial policy expires among many other factors. Since these costs vary, it is better to acquire this information before from your company.