The conversion clause allows the owner of the term life policy to convert the term life insurance into a permanent life insurance policy regardless of the insured's physical condition and without requiring a medical examination.
The insured cannot be denied coverage or charged an additional premium due to any health problems.
The new rate for the permanent life insurance policy is based on the insured's age and the amount of life insurance.
However, the term life insurance policy usually states the date by which the insured must choose to convert the term life policy into a permanent life insurance plan.
This clause allows the insured to change coverage over from temporary life insurance, into a lifetime policy that will remain "In Force" as long as the insured continues to pay the premiums.