Can I convert my term life to a whole life plan?

It is not possible to convert regular term plans into a whole life plan. Term plans have a specific policy period and coverage cannot be extended after policy maturity. However, if you hold a special type of term plan called the convertible plan, you can convert it into a whole life plan during the later stages of the policy.

You need to be aware that even if you hold a convertible term plan, the conversion doesn't happen automatically. It is converted into a whole life policy, only if the policyholder requests for the extension specifically. If you don’t initiate the conversion within the specified period, the policy continues as per the features of the original term plan and expires after the initial policy period.

Another major drawback of convertible plans is that they have a higher premium compared to regular term plans. Due to these disadvantages, convertible term plans are not popular in India. Hence, you have very limited choices like the Kotak Term Plan and the LIC Convertible Term Assurance Plan.

With that said, convertible term plans have a distinct advantage. It offers the policyholder basic insurance cover in the initial stages of the policy, and later the option to extend the coverage as he/she grows older.

If you’re looking to purchase a term plan, that can be converted into a whole life term plan, make sure to study the fine print. Read the plan features, conversion conditions and premiums to decide if it’s worth the extra costs.