Term Life vs. Whole Life: Should You Convert Later or Buy Both Now?

If you’re thinking about life insurance, you’ve probably come across this question.

“Should I just get term life insurance now and convert it later? Or should I lock in a small whole life policy alongside my term coverage from the start?”

It’s a smart question — and the right answer depends on your budget, goals, and how long you need your coverage to last.

Let’s break it down.

What Is the Conversion Privilege in Term Life Insurance?

Many term policies come with a conversion privilege, which lets you switch your term policy into a permanent policy — like a whole life — without a medical exam, even if your health changes.

That means if you develop a health condition down the road, you can still secure lifetime coverage at the health rating you had when you first got the policy.

Pretty powerful, right?

Option 1: Buy Term + Small Whole Life Now

This is like layering your protection — term insurance handles the big stuff (like income replacement, the mortgage, or kids’ college), and your whole life gives you permanent, guaranteed coverage no matter what.

Many people believe they can renew their term policy into a new term at its expiration. While this is possible, the premiums will be adjusted based on your age and health status at that time if you haven't converted it into a whole life.

For example, securing a 20-year term involves a risk over those years. If your health deteriorates, it might prevent you from renewing or significantly increase your premiums. If you decide to convert to a whole life policy, your premiums will change considerably anyway, and they will be higher if you didn't lock it in earlier when you were healthier and younger.

Pros:

• Your permanent coverage starts right away.

• You lock in lower whole-life rates now while you’re younger and healthier.

• You begin building cash value, which you can access later if needed.

• It removes the risk of forgetting to convert your term policy down the road.

Cons:

• It can be more expensive upfront than just getting a term policy alone, however, there are ways to adjust the whole life policy to meet a specific budget.

• You’re committing to more premium each month from day one.

Option 2: Buy Term Now and Convert Later

This strategy gives you some flexibility and keeps costs low today, especially if your income is tight or you’re still building your financial foundation.

Pros:

• Lower premium today — term life is the most affordable coverage option for the highest dollar amount.

• You keep the option open to convert later without another medical exam.

• You can upgrade when you’re ready, especially if your income increases.

Cons:

• The cost of whole-life coverage is based on your age at the time of conversion — so waiting means you’ll pay more later.

• You delay cash value growth and permanent coverage.

• You risk forgetting to convert or missing the conversion window.

Real-Life Example

Let’s say you’re 30 and healthy. You grab a 20-year term policy today. By the time you’re 50, you decide you want permanent coverage — but now it’s much more expensive because of your age. If your health has changed, you’re glad you have the conversion privilege… but it still costs more than it would’ve if you started with a small whole-life policy early on.

So, What’s the Right Move?

If your budget allows and you want to start building lifelong protection now for later down the road — consider the term + small whole life combo.

If you’re focused on affordability today, but you want to keep the door open for permanent coverage later — then go with the term now, and convert later (just set a reminder so you don’t miss your conversion window).

Either way, the key is to be intentional — not reactive — with your life insurance plan.

Need Help Figuring Out What’s Best for You?

At Fortified Life & Health, I’ll personally walk you through the pros, cons, and real numbers so you can make a confident decision that fits your family and your future while answering any questions you may have.

Let’s talk.

There’s no pressure — just real help.

Contact Me!

Frequently Asked Questions

Q: How do I know if my term policy is convertible?

A: Not all term policies are convertible — and even those that are may have limitations on when and how you can convert. The best way to know is to review your policy or ask your agent (that’s me — I’ll gladly walk you through it).

Q: What’s the deadline for converting a term policy?

A: Each insurance company sets its own rules. Some allow you to convert any time during the term, while others set a deadline — like within the first 10 years or before age 65. Don’t wait until the last minute to check!

Q: Will my premiums go up if I convert?

A: Yes, your new premium for whole life will be based on your age at the time of conversion — not your age when you first got the term. However, your health rating stays the same, which can be a huge benefit if your health has changed.

Q: Do I need a medical exam to convert?

A: No! That’s one of the biggest perks of conversion. As long as you’re converting within your policy’s allowed time frame, you don’t need to requalify medically.

Q: Why not just get your whole life from the beginning?

A: Whole life is a great tool for long-term protection and wealth-building, but it does cost more. For many families, starting with term plus a smaller whole-life policy is a more practical and affordable way to protect what matters most.

Q: What if I wait too long and miss the conversion window?

A: If the conversion window expires, you’d need to apply for new permanent coverage — and that does require a full health evaluation. Depending on your health, that could mean higher premiums… or even being denied coverage altogether.