What is the most important factor when deciding whether to convert term insurance at attained age or original age?

• A. The health
• B. The cost
• C. The premiums
• D. The policy length

Answer: (B)

The most important factor is cost. When you convert term to a permanent policy, the premium for the new policy is typically based on your age at conversion. Converting at your original, younger age usually means much lower permanent-premium rates, while waiting until attained age raises those premiums significantly because you’re older. Health may be less of a hurdle in a conversion since no new underwriting is required, and the choice of a permanent policy’s length is secondary to the immediate question of how much you’ll pay over time. So, the financial impact—the cost of the new premium—drives the decision.