Here’s the list of participating life insurance products available for term products conversion:
For annual premium reduction, cash payment and dividends on deposit
Term life insurance offer
Conditions for eligibility to convert term life insurance into participating whole life insurance with the following options:
PUA and enhanced insurance | Annual premium reduction, cash payment and dividends on deposit |
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- Must be within the first 10 years of coverage
- No extra premium on term life insurance
- The initial death benefit amount (including the enhanced insurance option) cannot exceed the death benefit amount of the term life insurance.
- Maximum age: according to the converted contract’s conditions
| - The initial death benefit amount cannot exceed the death benefit amount of the term life insurance
- Maximum age: according to the converted contract’s conditions
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However, after the first 10 years, the only options available are annual premium reduction, cash payment and dividends on deposit.
When a term life product allows for a conversion to a permanent product and there are neither specific clauses nor restrictions in the original contract, then the conditions mentioned above are applicable. However, a few older contracts may have restrictions and clauses preventing such a conversion. Therefore, it is important to treat these situations on a case-by-case basis, as to not give the client the wrong information. Please check with the head office by providing the contract number in order to proceed to verification.