Convertible Term Life Insurance

This will depend on the terms of your policy as well as the types of coverage offered by your life insurance company. It may include whole life, universal life or variable universal life insurance. At Northwestern Mutual, all term policies have a window of time that allows conversion to nearly any permanent life insurance policy. This includes whole life, universal life and variable universal life.

No. While they may sound similar, policy replacement involves purchasing a completely new life insurance policy to replace an existing policy. Unlike term conversion, policy replacement often involves a health check, which could result in higher premiums.

No. While many term life policies are convertible, not all policies from every compoanyare convertible. Whether or not a policy is convertible will depend on the terms of the insurance contract. At Northwestern Mutual, all term policies have a window of time that allows conversion to nearly any permanent life insurance policy. This includes whole life, universal life and variable universal life.

Ultimately, this will depend on your financial situation and goals. If you can afford the higher premiums associated with a permanent life insurance policy, it offers a number of benefits—including a lifelong death benefit, the ability to accrue cash value, and a number of tax benefits—which a term life policy doesn't offer. Keep in mind that it's not always necessary to convert the whole term policy. You can sometimes arrange a partial term conversion to meet your budget.

A permanent life insurance policy cannot be converted to a term life policy in the same way that a term life policy can be converted into a permanent life policy. If you're thinking of making a change, you may have options to talk things over with a financial advisor—and stay aware of any tax implications.

As a Northwestern Mutual term policyowner, you may have the option of converting some or all of your policy to permanent life insurance. To learn more, connect with your Northwestern Mutual financial advisor, who will walk you through the process.