Convertible Term Life Insurance

Although a Convertible Term Life Insurance policy is similar to other Term Life Insurance options, the difference is that the policyholder has the option to convert the policy to suit their changed financial circumstances in the future. So why would you choose to convert your Life Insurance policy? Popular options for converting would be an investment product like an endowment policy (in order to get a cash payout when the policy matures), or a Whole of Life Insurance policy, which will provide cover for the rest of the policyholder's life rather than for a set period of time.

Whole of Life Insurance policies are more expensive than Term Insurance because with the former, you receive a guaranteed payout upon your death regardless of when this occurs. Therefore if your income grows, it might make more financial sense to convert to this product, because it does actually accumulate value over the course of your life. As you might expect, your policy premiums for Convertible Term Life Insurance can be up to 10% higher over the course of the policy because of the added flexibility you enjoy. However an advantage is that when you convert your policy, you cannot be refused the right to take out a new policy based on the state of your health (although other factors will still be considered). In this way, a Convertible Term Life Insurance policy is preferable to a Renewable Term policy, where your premiums will go up according to age, health and lifestyle each time you renew.

Get a no-obligation Convertible Term Life Insurance quote now!

Important Tips for Buying Life Insurance

• Life 'Insurance' is different from Life 'Assurance' because it is not a certainty.  You would insure yourself against something unexpected happening, but would take out Assurance to minimise your financial exposure to something inevitable.

• If you take out any type of 'Term' insurance product, this means that you are choosing a set period of time when your cover will be active.  Beyond this period, your cover is no longer valid.

• The policy will be cheaper the less 'risky' you are to an insurer.  If you smoke, are in poor health or enjoy high-risk sports, statistically you are more likely to die, and therefore the cost of your premium will be higher.

• Joint policies for couples should be approached with a certain amount of caution.  The average joint policy pays out only after the first person dies, but for a relatively small amount more you could get separate policies with two payouts, which would have a greater benefit for your family (especially when you consider the expense of inheritance tax).