What is a Conversion Privilege?
If you have a term life insurance policy, or if you are shopping for one, then you want to make sure that your policy has a conversion privilege, also known as convertible term life. This is a provision that commits the insurer to renew the policy for a certain amount of time, regardless of a change in health or mental state of the insured. It essentially protects you from losing your life insurance coverage because of health issues. Just imagine that you have a twenty year term policy, and in year 19 you develop cancer or you have a heart attack? You would be one year away from the end of your insurance policy with very limited or very expensive options. If you have a convertible term life policy, then you can convert your policy to permanent cash value life insurance without evidence of insurability. This means that you won’t have to take a medical exam, and the insurance company cannot deny your option to convert your policy simply because you’ve developed health issues. There are s
The conversion privilege is a provision that is included in many different types of insurance policies. Essentially, the conversion privilege commits the issuer of the insurance coverage to renew the policy for at least a minimum amount of time with no regard for any changes to the physical or emotional health of the insured party. The presence of a conversion privilege effectively helps to prevent persons from losing insurance coverage when health issues occur. Sometimes referred to as a guaranteed renewable insurance policy or convertible term insurance coverage, the conversion privilege can also assist persons who need to convert from a group insurance policy to personal coverage. As an example, if an individual was covered by a group health plan and is no longer eligible to participate due to job termination, the insurance provider may offer the person conversion to a private policy without requiring that a physical examination be conducted. There are some limitations on conversion
” The conversion privilege is a provision that is included in many different types of insurance policies. Essentially, the conversion privilege commits the issuer of the insurance coverage to renew the policy for at least a minimum amount of time with no regard for any changes to the physical or emotional health of the insured party. The presence of a conversion privilege effectively helps to prevent persons from losing insurance coverage when health issues occur. .
The conversion privilege is your right to “convert” your group coverage to individual coverage in the event of retirement, or termination of your employment, or the Group Contract itself. Typically, you can convert from group to individual without providing medical evidence. Your individual rates will be based primarily on your age and smoking status at that time. You must apply to convert your policy within 31 days of your retirement, termination and so on. Talk to your Benefits Administrator about this conversion option or phone Medavie Blue Cross at 1-888-660-1122. Top If I die, can my Health coverage continue for my dependents? Yes, your spouse and dependent children can continue their Health coverage for up to one year after your death. No premiums are required for this coverage.
