Military convertible term life insurance
Everyone’s financial and personal circumstances can change and that’s no different for anyone serving in HM Armed Forces. If you’re looking for an insurance product with enhanced flexibility, you should seek advice. A military convertible term life insurance policy may be suitable where you expect or anticipate that you and your family’s financial situation could change over time. However, everyone’s needs differ and you should take independent advice.
How does military convertible term insurance work?
Convertible term life term insurance contains an option at the end of the term. In this case it is a choice to convert the policy into an endowment or whole of life policy without the need for a medical.
The option must be exercised before the plan ends. The level of protection can’t be increased upon conversion – and although your health isn’t taken into consideration at the time of conversion, the terms offered will be based on your age.
Policies from different providers naturally differ. But key features of military convertible term life insurance typically include:
- Options at specified dates to convert your fixed-term policy into a whole of life type insurance policy based on your health at the time you took out the original term insurance policy
- The agreement requires that premiums are paid on time and that the insurer makes no changes, except if a premium change is made for an entire class of policyholder
Be aware that:
- This type of insurance is based on an assessment of the health of the applicant at the onset of the policy.
- The plan will have no cash value at any time and will expire at the end of the term if the conversion option is not exercised. If premiums are not maintained, the cover will lapse.
- The conversion option comes at a price – policies are more expensive that a standard term assurance policy without a conversion option.
Why talk to Forces Advice about your military insurance needs?
Please note that some of the products covered by these guides may not be available to you, depending on your terms of engagement. Contact us for further details.
At Forces Advice we understand your insurance needs as a member of HM Armed Forces – and can give you personal advice to help you prepare for whatever life throw at you. Over 60% of our staff are, themselves, ex servicemen and women. By combining our understanding of the insurance needs of British service personnel with an in-depth professional understanding of insurance products, Forces Advice puts you and your family first.
We offer a range of products from a carefully selected insurers. As a member of SIIAP, we endeavour put the serviceman and their family first with quality cover that fits your particular needs. You can check our details on the Financial Services Register. Our firm reference Number is 622403.