The chief advantage of the conversion privilege on a term policy is that the insured can:
Explanation
Conversion lets the owner exchange term coverage for a permanent policy without new evidence of insurability, which protects someone whose health has worsened and who could no longer qualify for new coverage. It does not refund premiums, does not double the benefit for free, and does not eliminate premiums (the permanent policy will cost more). The value of conversion is preserving insurability while moving to lasting protection.
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Related questions on this topic
- Under the level premium approach used in whole life, the premiums charged in the early policy years are:
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