Life is quite unpredictable. Today you could be the rich and happy and tomorrow it could be something else, or vice-versa. Specially, when you are the bread earner of the family, you should ensure that any unforeseen situation may not bring your family and loved ones in danger zone.
Convertible Term Assurance policies are one such product which guarantees you secure cover. It applies more to people whose current income is not really decent but expects to have a better one with coming times. Convertible Term Assurance policy can be converted to a full-fledged long term plan at any point in time.
There are various insurance companies working in India which offer convertible term assurance. They offer quite affordable plans and almost anyone could afford them. If you are at the age of let’s say 25 years, you can start a convertible term insurance plan for as low as Rs. 240 and get covered for Rs. 5 Lakhs, to state an example.
How to choose convertible term assurance?
All you have to do is look for a reputed insurance company, which could be a semi-government as well as a private financial institution and get insured with a convertible term assurance. You may visit their website or their branch in person or make a call at the numbers provided in their website and in most likelihood their agent will get in touch with you in the least possible time.
Insurance providers and agents would be the ones who would make you understand the insights of the plans and help you choose a relevant plan for your specific needs. All you need to do is keep in mind how much money can you devote to your policy every month. The minimum age limit for convertible term assurance with almost every insurance provider is atleast 20 years or so and the maximum age limit is 50 years with most of the providers.
The benefits of convertible term assurance
One of the major benefits of convertible term policies is that they can be converted to a permanent term policy at any point in time. However, that depends on the conditions of timely payments of premium and maintenance of other terms of the policy.
The benefit is that the insurer does not have to undergo a fresh or additional process of documentation, not even the medical certifications. This way you can obtain a cheaper term life insurance and have the option of converting it to a permanent policy anytime, as your financial standings become stronger.
Last but not the least, convertible term assurance policies are affordable and convenient, but you would not be covered for lifetime. That’s one of the major drawbacks of term assurance policies. It simply provides cover for a temporary tenure, but at a low cost of liability.
However, they can be easily renewed and be converted to a permanent life insurance policy for a fixed tenure for whatever period you decide for yourself. Thus, if you budget does not allow to go for a full fledged life insurance, convertible term assurance policies are certainly a respite.