What Is A Term Life Insurance Conversion Credit? 
A conversion credit is a discount on premiums due on a permanent life insurance policy upon conversion . For example , if you have a term life insurance policy that has a $ 500 annual premium and to convert the policy to a permanent policy that has a premium if $ 5,000 per year , you will only owe the insurance company $ 4,500 in the first year you convert providing the insurance company offers a credit equal to the annual term premium . Credits are typically offered only in the year of conversion and generally are the amount of one year 's worth of term insurance premium . 