What Is A Conversion Credit On Life Insurance? 
Some life insurance companies provide a conversion credit for policy owners of convertible term insurance to convert their policy to permanent -LRB- cash value -RRB- life insurance . The credit is an incentive which credits last year 's term premium or some portion of it to the new permanent policy premium or as cash value . If made available , it will only be in the first few years of the term policy . It was once more common than it is today . 