A Convertible Term Assurance gives financial protection for dependants by providing a lump sum in the event of death.
A Convertible Term Assurance will provide some protection against changing circumstances. For example, should you fall ill near the expiry of the term you can convert the policy to a whole of life plan regardless of your state of health.
Summary of benefits:
- The benefits under this policy are guaranteed and do not depend on investment performance.
- Replace lost earnings to meet essential outgoings such as mortgage payments or school fees.
- Ensure that a reasonable standard of living is maintained by continuing income until children are self-supporting.
- Secure help in bringing up children and maintaining the family home.
- Allow a surviving parent to devote time and attention to the needs of children.
- Supplement dependant’s pension and other benefits.
- The policy can be written under trust for ease of administration on death or part of an IHT planning exercise to reduce the value of your estate(s).
- Can be written as a single, joint or last survivor policy to meet your objectives.
- Life assurance cover can continue irrespective of your state of health by effecting the conversion option.
- If you stop paying the contribution the life cover will cease.
- The effects of inflation could reduce the purchasing power of your benefits.
- The plan has no cash value either during or at the end of the term.