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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Conversion Privilege


If you have health insurance (and... it's illegal not to, so you do), there's a point at which that policy expires. The conversion privilege lets you "convert" your policy into a similar policy that continues on for a few more years. Conversion privilege is a big deal for people with dicey health issues because it means the policy can't be cancelled for health reasons (and premiums generally stay the same).