Convertible Insurance Law and Legal Definition
Convertible insurance refers to insurance that can be changed to another form without further evidence of insurability. Generally, convertible insurance is referred to as life term insurance policy. It can also be converted to permanent insurance without a medical examination. Many young, healthy policyholders choose a convertible term insurance policy initially because of the low cost premiums and basic coverage that it affords their family, who usually are the beneficiaries of such as policy. At some point, many of these consumers decide to upgrade their policy to a whole-life policy for a stable policy that covers a mature family's needs. [Perrydore v. Hester, 215 Ala. 268 (Ala. 1926)].
Convertible insurance is one of the best options when exploring the many life coverage choices available today. Convertible insurance is cost effective for an individual and provides an incentive to convert to a whole policy that is more of an investment by its ability to capitalize earned interest, thereby increasing the value of the policy. Under convertible insurance, there is no underwriting necessary when moving to a whole policy from a policy with no investment value. Hence, it is very easy and cost effective to make the leap. It also allows the insured to convert to a whole-life policy that will cover them and their family for the remainder of life with any number of benefits and coverage options.
Legal Definition list
Related Legal Terms
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]