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Converting Term Life Insurance to Whole Life Insurance

Life insurance is an integral part of financial planning, especially for those who have dependents. However, as life circumstances change, it is essential to re-evaluate your life insurance policy to ensure it meets the current needs. 

One such change that policyholders may consider is converting their term life insurance policy to a whole life insurance policy. Full life insurance provides lifelong coverage and also has a cash value component. 

This article will discuss the factors to consider when converting life insurance to whole life insurance.

What Is Whole Life Insurance?

Whole life insurance is a permanent life insurance policy that covers the policyholder’s entire life. It has a death benefit paid to the beneficiary upon the policyholder’s death. 

Additionally, its policies have a cash value component that grows over time. The cash value component is tax-deferred and can be used to borrow against or withdraw from the policy.

Reasons To Convert to Whole Life Insurance

There are several reasons why policyholders may consider converting their term life insurance policy to whole life insurance. 

One reason is that whole life insurance provides lifelong coverage, whereas term life insurance only covers a specific period. Policyholders who want to ensure their beneficiaries receive a death benefit regardless of when they pass away may want to consider converting to whole-life insurance. 

Additionally, policyholders who have accumulated significant assets and want to leave a legacy for their beneficiaries may find that whole life insurance is a better option.

Considerations When Converting to Whole Life Insurance

Before converting to whole life insurance, policyholders should consider several factors. 

One factor is the cost of the policy. Whole life insurance premiums are typically higher than term life insurance premiums, and policyholders may need to pay more to maintain the policy. 

Furthermore, policyholders should consider the cash value component of the policy. The cash value component grows over time, but it may take several years to accumulate a significant amount. Policyholders needing access to cash may want to consider other options, such as a personal or home equity loan.

How To Convert to Whole Life Insurance

Policyholders should contact their insurance company to convert to whole life insurance and request a conversion form. The conversion form will outline the terms of the new policy and the cost of the premiums. 

They may undergo a medical exam to determine their eligibility for the new policy. The cost of the new policy will depend on several factors, including the policyholder’s age, health, and the amount of coverage they need.

Benefits of Whole Life Insurance

Whole life insurance has several benefits that policyholders may find attractive. One advantage is that the premiums are guaranteed and will not increase over time. The death benefit is also guaranteed and will be paid to the beneficiary regardless of when the policyholder dies. 

Whole life insurance policies also have cash value components that grow over time, providing policyholders with a tax-deferred savings account. Policyholders can borrow against or withdraw from the policy’s cash value component, providing access to cash when needed.


Converting term life insurance to whole life insurance can be an excellent option for policyholders who want lifelong coverage and a tax-deferred savings account. However, before deciding to convert, policyholders should consider several factors, including the cost of the policy, the cash value component, and their current financial situation. By weighing the factors and processes of whole life insurance, policyholders can make informed decisions that meet their current and future needs.

If you’re considering converting your life insurance policy to whole life insurance, we’re here to help. Full life insurance provides lifelong coverage and includes a cash value component, ensuring comprehensive protection and financial security for you and your loved ones. Make the right choice for your whole life insurance in Conyers, GA. Contact us now!