Converting Your Insurance – What’s Right for You

converting your insurance, term life insurance, premiums, renewal, rate increase, risk classCut the cost of your life insurance without sacrificing coverage

Term life insurance is an affordable, cost-effective way to acquire life insurance.

If you currently own a term 10 year policy, and need coverage for a longer period, that coverage can become even more affordable by converting your term 10 year policy or riders to a new term 20 year policy.


Convert for savings

If you currently own a term 10 policy, you have the ability to renew without having to provide proof of health. However, when you renew, premiums increase based on your current age, sometimes significantly.

If you convert to a term 20 policy within the first five years of your 10-year term you lock in premiums for the 20 year period, avoiding a potentially costly term 10 renewal.

In fact, calculated over a 25 year period, assuming conversion during the fifth policy year, you can save up to 35 per cent, depending on your age, sex, smoker status and other factors while getting the same amount of insurance protection.


Add value through conversion

Converting a term 10 life insurance policy to a term 20 allows you to put in place the coverage you need and can afford today to help meet your changing life insurance needs for the future.


How it works

A rate increase after ten years can be avoided if you simply convert your term 10 policy within the first five years of the policy being issued. You are not required to provide evidence of insurability, allowing you to remain in your original risk class, meaning your rates will remain the same as when your policy was first issued.

Term 10 policies and riders must be in force for a minimum of 12 months before conversion and you must apply for conversion before the earlier of the fifth anniversary of the Term 10 policy or the date the life insured reaches age 65. Some restrictions apply to the availability of conversion.


Is conversion right for you?converting your insurance, term life insurance, premiums, renewal, rate increase, risk class

Converting to a term 20 policy in the fifth year may be right for you if you are sure you want life insurance for more than five years. By converting from a term 10 policy to term 20 in the first five years of your original policy, you could save significantly.

If you are already in the fifth year of your term 10 policy and you’re sure you won’t need life insurance five years from now, when the policy comes up for renewal, converting may not be your best option.





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