Life convertable or normal policy

was thinking of taking out a new insurance policy and got a quote for 200k with converable cover up to age 65 only for 26euro a month approx for 28 years(current age 37).
the other option was 33 years with no conversion option up to age 70 for 29euros a month.
i was more inclined to go for the 33 year one but someone told me the conversion option is a big plus even though the policy must terminate before i reach 65 for a new one?
anyone any thoughts?
thanks

Will you really need 200k cover when you are in your 60's?

Thats the question I would ask myself if I were you.


www.CheaperLifeAssurance.ie

I would always advise adding convertibility - it's a cheap benefit.

Depending on the insurer it allows you to convert your existing policy to a new one at any time (depending on insurer) before you reach 65. You can convert it to a level term life policy up to the age of 80 (depending on insurer) or a whole of life policy (if offered by the insurer). Convertibility gives you flexibility to alter your policy, this is not normally available on a term life policy.

You should focus on the conditions of the convertibility offered by the individual insurer more than on the premium.

NorfBank said:

I would always advise adding convertibility - it's a cheap benefit.

Depending on the insurer it allows you to convert your exiting policy to a new one at any time (depending on insurer) before you reach 65. You can convert it to a level term life policy up to the age of 80 (depending on insurer) or a whole of life policy (if offered by the insurer). Convertibility gives you flexibility to alter your policy, this is not available on a term life policy.

You should focus on the conditions of the convertibility offered by the individual insurer more than on the premium.

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thanks for that. my mortgage finishes at 65 exactly so i need cover up until then. the terms of the conversion is that it may be converted once to a level term policy before age 65 but no conversion option will be offered on the new policy(caledonian life terms). calendian max age of life policy is 80 i think as well and the option for whole of life is not available..

If it's for a mortgage then why not just take out a basic mortgage protection policy for the amount and term required? Cheap and keeps the bank happy.

If you need personal/family protection then you could take out a separate life insurance policy tailored to your individual needs.

If you are single without dependents then mortgage protection is really all you need.

its for life insurance to replace mortgage protection policy but i just want to have the option of an extra payout if i die for my wife instead of it all going to the bank before I reach 70.(if i die in my sixties she will have the state pension and a lump sum from the civil service widows and orphans scheme so this extra will be a bonus.
anyway i am rambling... I think the convertable option is the one I will go for..

Another option with New Ireland insurance is to go for a standard term policy (20 years for example). They allow you to add on a whole of life continuation option, which provides cover after the policy finishes and for the rest of your life. So after 20 years, you stop paying your life policy but you still have life cover for the rest of your life. Might be worth checking out as at least you will be guaranteed to have life cover at the end, the convertible policy can't guarantee that.


www.powerinsurances.ie

Always add on a conversion option.

I have had two death claims in the last 6 months where there was no conversion option in recently expired level term policies (I didn't sell the policies before someone says it).

One of them told me about a year ago that he decided not to pay the extra 10% premium for the coversion option (all those years ago).

It is not relevant whether you want the 200K cover at 65, the point is that you CAN have without further medical evidence. The premum will be based on your age at conversion though.

You also can convert some or all of it during the life of the policy.

Norfbank makes a good point about which policies you can convert to, it is more important than the price now.

Patrick

pj111 said:

It is not relevant whether you want the 200K cover at 65, the point is that you CAN have without further medical evidence.

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Of course its relevant. Not everyone wants to be paying for that level of life assurance cover at 65.

- Their mortgage may be paid off.
- They may have no dependents.

Sure this poster seems to want the cover but for many people €10,000 cover for funeral expenses is more than enough.

Selling someone cover they dont need/want is bad advice anyway you cut it.

StevieC said:

Of course its relevant. Not everyone wants to be paying for that level of life assurance cover at 65.

- Their mortgage may be paid off.
- They may have no dependents.

Sure this poster seems to want the cover but for many people €10,000 cover for funeral expenses is more than enough.

Selling someone cover they dont need/want is bad advice anyway you cut it.

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I think you miss my point entirely.

The reason for life cover upto 65 is to cover a risk during the term of the policy. At any stage up to the expiry of the cover, the cover can be reduced or the conversion option can be exercised.

Otherwise, cover has served its purpose at expiry and one can convert some, all or none without medical evidence for the rates in force at the time i.e male or female aged 65 for a term of 5,10,15,20 years etc

That is the relevant part.

A good advisor will cover all options not only now but in all the years to come. It is not possible to give full advice on a public forum without having one's full circumstances readily available.

Patrick

ok i went for the conversion option in the end and indexation believe it or not....rare i know but the reason i did was i will be moving house in 8 or 10 years time and with indexation my policy will have increased in value(premiums increase as well I know) and didnt want the hassle of having to re-apply for a new policy again and go through another thorough medical for a higher amount having had the hassle of it before.