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. If you are strictly looking for coverage for a set period of time, and cannot see ever benefiting from the savings component in the future, then it’s probably best you do not pay the extra cost for a convertible option. 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. LifeCover.ca is committed to connecting you with a certified insurance professional, quickly and easily. We’ve helped thousands of Canadians get the best possible option at the best price, so let up help you to.