Life Convertable cover

seantheman

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I have life assurance that is convertable and indexed and is due to end in four years. Do i have to stay with the same company if i decide to exercise the convertable option within the insurance?
 
I have life assurance that is convertable and indexed and is due to end in four years. Do i have to stay with the same company if i decide to exercise the convertable option within the insurance?

Yes.

The convertible option only allows you to start a new policy with the same company without having to provide evidence of health. So if you have any health issues, it can be useful.

But if you have no relevant health issues, then you can simply shop around and apply for a new policy as normal.

Liam D. Ferguson
 
Thanks Liam, the policy was originally taken out with New Ireland through a tied agent, I have since got quotes from the same agent and some low commission brokers for a separate life policy and there was a fair discrepancy in prices. When the original policy comes up for renewal can i exercise the convertable option for a continued life policy through a low commission broker rather than go through the tied agent again?
 
The quotes you received online weren't necessarily New Ireland. But if you want to stay with New Ireland and exercise the conversion option through another broker, you'd need to appoint the other broker as agent for the original policy first. That's done with just a letter. Talk to the other broker first - they may or may not offer the same level of discounts for all companies.
 
Check your terms and conditions as some conversion options must be exercised before a certain age and then only to a unit linked (reviewable) policy.
If your health is good now it might be better to take out a new plan now with a conversion option so that you will have another conv. opt. available at an older age.
Also some newer policies have rolling conversion options so that they can be converted more than once..
 
For the small extra premium you should always purchase a conversion option. It can be a very valuable benefit to have.
 
Ok, so i have a recent medical condition that adds a loading to a new policy taken out. This happens to be with the same company as the life policy with convertable cover that i spoke of in an earlier post. When the first policy (with medical conversion)comes up for renewal, can i be sure that my new quote will not be affected by their newfound knowledge that i now have a medical condition?
 
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