Analysis Methodology
How we assess conversion mortality risk across the industry.
Risk Classification Framework
Companies that actively encourage conversions through financial incentives (conversion credits, full commissions) or frictionless digital processes. By making conversion easy and attractive, they retain a mix of healthy and unhealthy lives, diluting anti-selection risk.
Standard industry practice. Policy allows conversion for the full level term period (or to age 70/75) without medical underwriting. No special incentives are offered, but no severe restrictions exist.
Companies with restrictive policies: short conversion windows (e.g., first 5 years only), limits to uncompetitive "conversion-only" products, or complex paper-based processes. These barriers filter out healthy lives, leaving a pool of high-mortality anti-selective risks.
Companies that offer term life insurance with no conversion privilege. The policy simply terminates at the end of the term. Conversion mortality risk is non-existent (0%).
Key Assessment Metrics
Conversion Ease Score (0-10)
A proxy for operational friction.
10/10: Fully digital, one-click, no agent required.
5/10: Standard paper application, requires agent.
0/10: No option available or actively hostile process.
Product Range Breadth
Broad: Convertible to entire permanent portfolio (Whole Life, IUL, VUL).
Narrow: Convertible only to specific, often less competitive, "conversion products".
Research & Data Sources
Our analysis engine aggregates data from multiple high-authority sources to construct a complete picture of each carrier's risk profile.
- Agent & Producer Guides: Primary source for commission rules and "hidden" restrictions.
- SEC Filings (10-K/10-Q): Analysis of risk factor disclosures regarding mortality experience.
- Consumer Complaints: Detection of operational friction (e.g., complaints about delayed conversion processing).
- Historical Policy Data: Tracking changes in conversion windows over the last 20 years.