Conversion Options – Giving Your Clients a Second Line of Defence

At Aviva, we’ve recently introduced conversion options on our Mortgage Protection and Decreasing Term Family Protection plans. Some of the benefits include:

• Your clients can convert the policy before the end of term, to a new policy, all without having to be medically assessed.
• They can choose to convert the remaining sum assured to another decreasing term policy or to a level or convertible term policy.
• They also have the option to extend the expiry date on the new policy.

What are the benefits of having a conversion option?

• Even if your client’s health suffers, their cover won’t. It provides a safety net for the future.
• Provides the option to extend the term or convert the current sum assured to a level or decreasing term contract without the need for medical underwriting.
• Includes rolling convertibility with Specified illness included in the rolling conversion if it was included on the original policy.

 Why might your client need it?

What’s important to someone in their early 30s will be different in their 40s and older.  They may need to renegotiate their mortgage cover and/or extend the term. They may have got married and/or grown their family and the sum assured is required for a longer term. As time moves on, they may be earning more and have more disposable income and now want to change to a level term contract.

Here‘s an example using Decreasing Term Family Protection where both parents in a family are aged 32, non-smokers with young children aged 4 & 6 and have combined earnings of €65,000.  They want life cover until their youngest turns 18. (14 years).
 

Now using Convertible Decreasing Term Family Protection, upgrade the recommendation by adding a conversion option for €49.76* – just over €2.00 extra per month. Giving your clients a second line of defence in case the unexpected happens.

At this point the sum assured on the policy is €585,000, they need a policy worth €350,000 and choose a convertible level term plan giving them guaranteed insurability to age 90.

As you will see in these examples, the cost difference is minimal but the difference in having it in the future could be life changing.

The Guaranteed Insurability Option on mortgage protection also means your client can increase their mortgage or extend it’s term, they can take out additional mortgage protection cover to meet their need for a larger amount of life cover. We won’t ask for further evidence of their health as long as the term of their plan matches that of their extended mortgage and the increase in cover is no more than €40,000.

Protection from Aviva also includes support for your client’s physical wellbeing through Best Doctors Second Medical Opinion and mental health through Aviva Family Care at no extra cost.

We cover each of your client’s children for the lesser of €5,000 life cover or 10% of the sum insured life cover for as long as they are covered.

Your client will also qualify for accidental death benefit from the moment you send us a fully completed and signed application form and direct debit mandate. Your clients get covered for accidental death up until we accept or decline their application. We will pay out the lower of the life cover amount being applied for or €150,000.

Aviva Life & Pensions Ireland does not guarantee the on-going availability of the Best Doctors – Second Medical Opinion benefit to its policyholders or the Aviva Family Care Benefit (Mental Health Support) and may, at its sole discretion, withdraw access to the service at a month’s notice. If we withdraw it, we’ll write to notify policyholders at least 31 days in advance of its removal. Teladoc Health (who provide the Best Doctors and Aviva Family Care Benefit) is not a regulated financial service.