Act of transferring group insurance coverage to an individual insurance policy.
Tag: RAW
Convertible
Capable of being converted by exchange into property of another kind.
Convertible (Life Insurance)
Refers to an insurance policy with a provision that stipulates the policy can be converted to another type of policy.
Convertible bond
Type of investment that permits the owner to change it into a specific number of shares of stock.
Convertible collision insurance (Vehicle Insurance)
A policy that covers all losses after claims exceeding the deductible have been paid. This type of policy is rare.
Convertible currency
In the Lloyd’s market this means any currency other than sterling, US dollars and Canadian dollars. In the company market it means any currency other than the main currencies in which the business is transacted. Convertible currency is normally accounted for in sterling.
Convertible Term
Convertible term is a type of term life insurance policy that can be converted to a permanent life insurance contract (whole life or universal life) without evidence of insurability. For example, a young woman may purchase term insurance to cover the basic needs of her family (pay off debt, final expenses, etc.). If the term is convertible to whole life, she may, before the end of the policy term, convert to a permanent form of life insurance even if she has contracted a major disease or become disabled. (See Term Insurance).
Convertible term assurance
a term insurance policy containing an option to convert to a whole of life or life and endowment policy without further evidence of health.
Convertible term insurance
Type of term insurance in which the policyholder is allowed to change the term insurance policy to a whole life policy without giving evidence of insurability. The premium amount is based on the age of the insured at the time of the conversion.
Convertible term life policies
See: Conversion 2.