Life Insurance Medical Free Conversion Option | Explained

Why do life insurance companies have to make everything so complicated?

Instead of using simple words, they try their best to confuse us with jargon and waffle.

This is especially true when it comes to the life insurance conversion / protection continuation / convertible cover / guaranteed cover again option.

Yep, they all mean exactly the same thing

So what the hell is it and should you buy it?

That’s what we’re going to cover in this page:

What the hell is a life insurance conversion option?

or you could ask what happens when my life insurance policy comes to an end?

Let’s say you take out a life insurance policy when you’re in perfect health.

As you get older you get a few niggles.

You reach the end of your life insurance policy term and realise you’d like to extend it. Your life insurer could refuse because of your new health issues.

You’re left without cover when you’re most likely to need it.

The conversion option protects you from this situation:

• It guarantees cover in later life without having to answer health questions.
• The insurer must offer you cover based on your health when you took out your policy.
• The insurer must disregard any subsequent health issues.

Should you add protection continuation to your policy?

Hell yeah!

Who knows what the future holds? If you get sick, the life insurance conversion option is your get out of jail free card.

You show it and the life insurer has to extend your cover even if you’re seriously ill.

Don’t even think about it, ADD IT TO YOUR POLICY.

I believe in it so much, I’ll ask you to sign a waiver if you don’t add it!

How much does the conversion option cost?

It depends on how much cover you’re buying, the insurer you choose and your age.

You can quote for life insurance with the conversion option (continue cover option) and without on our life insurance quotes system.

Which insurer is best for convertible life insurance?

There are two companies I recommend for convertible life insurance:

1. Friends First
2. Zurich Life

Let’s look at them one by one:

Why Friends First for convertible life insurance?

Friends First are the only insurer who allow you to convert your policy to a reviewable whole of life insurance policy.

As you can tell from that article, I don’t like reviewable whole of life policies but if you hit 65 and have major health issues, this is the only way you can guarantee life insurance for the rest of your life.

Why Zurich Life for convertible life insurance?

If you go into long term care when you are older, Zurich Life are the only company that will allow you to convert your life insurance policy into an annual long term care plan.

• Between the ages of 60 and 65, you can convert your life insurance cover into a payment that will provide annual long term care for a period lasting no longer than 50 months.
• There must be at least ten years remaining of the policy term at the time of conversion.
• The maximum amount of life cover you can convert is €150,000.
• If there is accelerated serious illness cover on your policy, the maximum is the lower of €150,000 or (life cover – minus serious illness cover)

Let’s look at an example:

• Brian is 62 and is diagnosed with Alzheimers.
• He has €250,000 life insurance with a term of 12 years remaining.
• Brian can convert €150,000 to 50 monthly payments of €3,000 to pay for his nursing homes costs.
• The €100,000 balance of life insurance continues for the 12 remaining years.

Two more reasons to choose Zurich:

1. Zurich are best when it comes to the maximum age you you can buy convertible term insurance – up to age 64 (other insurer limit to age 59)
2. And they are generous when it comes to the maximum age you can convert your policy – up to age 82 (other insurers limit to age 64)

Over to you…

As you can see, when it comes to the life insurance conversion option, all insurers are NOT created equally.

But now you know enough to make the right decision for yourself

I know this article wasn’t the easiest read so if you’d like some help or would like me to clarify anything, please get in touch

Nick McGowan
lion.ie | making life insurance easier