What Is Convertible Term Life Insurance?
Dec 08, · Benefits of convertible term life insurance. Policy details differ, but for most term conversions: You can decide when the time is right. Term policies with a conversion option usually let you choose when to trade them in for permanent coverage. There might be restrictions, though, so be sure to check the details. Feb 01, · With convertible term life insurance, you don't have to worry about tomorrow. A convertible term policy also lets you extend your coverage as it gets close to expiring. You can convert at any point while your term life policy is still active — even a few days before the expiration date, depending on the policy.
A Convertible Term Assurance gives financial protection for dependants by providing a lump sum in the event of death. A Convertible Term Assurance will provide some protection against changing circumstances. For example, should you fall ill near the expiry of the term you can convert the policy to a whole of life plan regardless of your state of health.
How to make an origami santa hat cookie settings on this iis are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. Search for:. CopperHouse Financial. Personal Planning Services. Summary of benefits: The benefits under this policy are guaranteed and do not depend on investment performance.
Replace lost earnings to meet essential outgoings such as mortgage payments or school fees. Ensure that a reasonable standard of living whah maintained by continuing income until children are self-supporting.
Secure help in bringing up children and maintaining the family home. Allow a surviving parent to devote time and attention to the needs of children. The policy can be written under trust for ease of administration on death or part of an IHT planning exercise to reduce the value of your estate s. Can be written as a single, joint or last survivor policy to meet your objectives. Life assurance cover can continue irrespective convetible your state of health by effecting the conversion option.
Risk Warnings If you stop paying the contribution the life cover will cease. The effects of inflation could reduce the purchasing power of your benefits. The plan has no cash value either during or at the end of the term.
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Nov 18, · To understand the benefits inherent in a convertible term insurance plan, it is important they understand the concept of convertible term insurance. Convertible term insurance plans come with an in-built feature that allows the plan to be converted into an endowment plan. This conversion option comes as an add-on feature. Convertible Term Assurance. Many Canadians recognize the advantages that comes with having a whole life insurance policy. Convertible term insurance (or convertible term assurance) is designed for people who ultimately want whole life insurance but cannot afford the cost of the premiums. A convertible term life insurance plan has an option attached to the plan which allows the conversion of the plan to an endowment assurance plan. Some convertible term life plans have an inbuilt conversion option while some allow conversion as an add-on feature. The policyholder can choose to attach this feature by paying an additional premium.
Many Canadians recognize the advantages that comes with having a whole life insurance policy. Convertible term insurance or convertible term assurance is designed for people who ultimately want whole life insurance but cannot afford the cost of the premiums. Convertible term insurance provide the coverage of a term life insurance policy, but give you the option of later upgrading to a whole life policy. With a Convertible term insurance policy, you will pay slightly more than a comparable term life policy.
The advantage for those wishing to upgrade their life insurance policy with the convertible term policy is that they are not required to undergo a medical exam. Life insurance companies normally would not allow someone to upgrade their policy without a thorough medical exam.
For those who want basic coverage now, but plan on widening their policy in later years to include a savings component, a convertible term insurance policy may be your best option.
In deciding on a convertible term insurance policy, it is important to first assess what you want from your life insurance policy overall.
Convertible life insurance is designed for those who understand the added value and benefits that come with a whole life policy, but are simply unable to afford it right now. Given the many types of polices and options available today, the only true way to know your options is to discuss them with an independent life insurance broker. Resources Contact Us Links Blog. Convertible Term Assurance Many Canadians recognize the advantages that comes with having a whole life insurance policy.
Decisions, Decisions, Decisions… In deciding on a convertible term insurance policy, it is important to first assess what you want from your life insurance policy overall.