Definition of "Convertible Term"

In life insurance this is a provision within a contract that allows it to be converted into something of greater value, for example convertible term assurance could be converted in the future into Whole of Life assurance. The life insurance company generally charges a higher premium for these contracts but still far cheaper than the whole of Life Insurance would be at that time. This allows the client to get some degree of insurance but at a later date apply free of any underwriting for a more comprehensive plan.