What does Convertible mean? Read on to discover the definition & meaning of the term Convertible - to help you better understand the language used in insurance policies.
Convertible refers to a feature in a term insurance policy that allows a policyholder to convert a limited term policy to a permanent one before the term expires and without presenting any evidence of insurability. The latter means that the policyholder does not have to submit to a medical examination for eligibility, but the insurance company is obligated to insure them at the same state of risk as in the original term policy.
We hope the you have a better understanding of the meaning of Convertible.