Converting term to permanent before the conversion window closes

Most term policies carry a conversion privilege: swap into a permanent policy from the same carrier without new underwriting, up to a deadline. Agents forget this exists until the client's health changes, and by then the window is often shut.

The rules vary a lot. Some carriers allow conversion through the full term, some only through year 10, some until age 65 or 70, and the permanent products available for conversion can be limited to one or two. The details are in the policy contract, not the illustration.

Why it matters. A client diagnosed with something serious at 52 can still convert a 20-year term bought at 40 into a permanent policy at the same underwriting class they had at 40. That is the single most valuable feature in their financial life at that point, and nobody told them about it.

The service play. Once a year, run your term book against conversion deadlines. Anyone within 18 months of losing the privilege gets a call: here's the deadline, here's what a partial conversion would cost, here's what happens if you do nothing. Partial conversions are underused; a client can convert $100,000 of a $500,000 term and keep the rest as term.

When to advise against it. Healthy client, no estate need, premium jump they can't sustain. Conversion is a tool, not a default.

Compensation. Conversions typically pay a commission on the new permanent policy, sometimes reduced. Check your carrier's schedule so you don't get surprised, and don't let the comp drive the recommendation.

Does your CRM flag conversion deadlines? If not, how are you tracking them?