Who is likely to benefit from converting to a permanent insurance policy?

Converting to a permanent insurance policy can be particularly advantageous for individuals whose health has deteriorated significantly. This is because applicants for new insurance policies typically undergo medical underwriting, which assesses their current health status to determine eligibility and premium rates. When someone's health has worsened, obtaining a new policy could be challenging or prohibitively expensive, if not impossible.

On the other hand, converting to a permanent policy often allows an individual to bypass some of the rigorous underwriting processes that would apply if they sought a new term policy. Thus, they can secure coverage without facing the potential repercussions of their deteriorating health, ensuring they have lifelong protection without having to undergo additional medical evaluations.

Individuals in excellent health might consider permanent insurance for other reasons, such as the desire for lifelong coverage or cash value accumulation, but their current health status does not make them particularly reliant on the conversion option. Those with improved health during the term might actually prefer to seek new coverage that reflects their enhanced health status, rather than converting, which may not provide them the best rates. Lastly, those looking for cheaper premiums are generally more suited to term insurance rather than permanent insurance, as permanent products typically come with higher initial costs.