Updated: September 25, 2019

Converting Term to Whole Life Insurance

Want to change your life insurance policy to a whole-of-life plan for broader protection? Read our guide to find out how to do it

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: September 25, 2019

Term life insurance offers affordable, temporary coverage for a specific period of time. Many people take out term life insurance for a 10, 20, or even 30-year term to ensure their beneficiaries or mortgage will be taken care of financially should anything happen to them.

Can you convert term to whole life insurance?

If your term life insurance is reaching the end of its term, or you’d just like to upgrade your life cover to include cash value investment options and the chance to pass on wealth to your beneficiaries when you die, there are many different ways that you can choose to convert your insurance. Although you will need to select certain flexibility terms at the time of taking out the policy.

By speaking with an insurance advisor, they can help you structure the converted insurance policy according to your needs and goals. They can also answer any questions you may have and offer guidance on selecting a policy that’s the right match for your needs.

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How can I convert my life insurance?

Most term life policies include the option of converting to whole life insurance without paying additional fees to change the contract. This is a bolt-on option you can choose when applying for your policy, but it will make the premiums more expensive.

Term conversion riders have an expiry date which varies according to provider and policy, and you’ll need to convert before this date expires to avoid having to redo the underwriting process.

You can usually convert your term insurance without having to take another medical exam. As long as you selected this option at the outset, you’ll be paying higher premiums so that you don’t need to take another medical exam to benefit from converting your term insurance to whole life insurance.

An insurance expert can help you find the provider with the right life cover upgrade – make an enquiry to get started.


Will I have to pay extra to convert my insurance to whole life?

No, usually you can convert according to the terms agreed at the time of taking out the policy. For instance, if your health has deteriorated in the meantime, this won’t count against you or impact the price of your monthly premiums.

An insurance advisor can offer guidance on which conversion option would save you the most in the long-term. Make an enquiry and we’ll put you through to an insurance expert.

Should I convert term insurance to whole life?

You may wish to convert your term life insurance into a whole life one if:

  • Your term life policy is due to expire and you’d like to extend your life insurance cover
  • Getting another term insurance policy is expensive due to your current age
  • You’d like to set up a trust as part of your will
  • You’d like to take advantage of the tax-deferred investment option offered in cash value life insurance
  • You are concerned about estate taxes and would like to use permanent life cover as a tax-efficient way of passing wealth on to your family or beneficiaries
  • You would like a guaranteed payout to pass on to your family when you die to help with the funeral or other costs, or to give as a gift
  • You are earning more than you were when you first took out term cover, and you’d like lifelong cover and investment opportunities

Whole of life insurance offers many benefits as part of the premiums paid towards a cash value investment which builds tax-deferred gains. You can also use this cash value as collateral for taking out a loan, or you can choose to surrender your life insurance altogether and withdraw some of the money you invested.

Speak to an expert advisor today!

Whole life insurance offers many benefits which go beyond the lump sum payout given to your loved ones when you die.

However, it can take years to build up the cash value or surrender charge in your permanent policy, and you will pay more for whole life insurance than you did for term life. Whether or not converting is your most profitable option will depend on your circumstances and what you most need life cover for.

If you’re unsure of whether converting your term life insurance to whole life cover is the right option for you, or you’d like guidance on what type of whole life policy to convert to, call us on 0808 189 0463 or make an enquiry.

The insurance advisors we work can advise you on your best options for conversion and help you take advantage of any potential for saving money.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

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FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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