Conversion Privilege

This a feature of a particular type of insurance policy for which the insurer has to renew the policy within a circum time regardless of the changes in the insured's state of health. Under this type of agreement the insurer has to pay premiums timely and the changes in premiums can be made only in the event of a change for the entire segment of policyholders. Other names for this policy include guaranteed renewable policy, convertible term insurance policy and guaranteed insurability.