What is typically required when converting a term insurance policy?

When converting a term insurance policy to a permanent policy, proof of insurability is typically required. This requirement exists because the insurer needs to reassess the risk posed by the insured when transitioning from a term policy, which is generally easier to obtain and usually has lower initial premiums, to a permanent policy that provides lifelong coverage.

The insured's health status and any changes in risk factors since the initial policy was issued play a crucial role in determining insurability and the premium rates for the new policy. Without this assessment, the insurer would not be able to effectively evaluate the risk associated with converting the policy, which could result in imbalanced risk and financial exposure for the insurance company.

While premium adjustments and terms renewal may also occur during the conversion process, they are dependent on the outcomes of the insurability assessment. Beneficiary confirmation, although important in insurance policies, is not a primary requirement specifically tied to the conversion of a term policy to a permanent policy. Thus, proof of insurability stands out as the key requirement in this context.