Because your insurance needs and finances change over time, being able to convert a term policy to a permanent type of insurance is very important. This allows you to get permanent life coverage without the need for a physical examination or evidence of insurability. While all companies have their own specific convertibility periods, most allow you to convert to a permanent type of insurance up until the ages of 55-70. Because insurance rates can increase as you grow older, and your health can affect your insurance premiums dramatically, it is to your benefit to lock in a lower rate at a younger age. Upon conversion to an already more expensive permanent type life insurance, you are rated based on your original policy, not your health at the time of conversion.
Some companies offer unique products that combine aspects of term and permanent types of insurance.
One such product is a universal life policy that builds no cash value. This type of product allows the consumer to get term-like premiums for longer coverage periods, or even to age 100. A product like this gives great flexibility to the insurance consumer. You can pay low premiums in the early years to just take advantage of the death benefit and pay more later to start to build some cash value for your later years. These types of products are very specialized and could be a consideration for someone looking for longer coverage periods than the 30-year term products that are currently available.