Joint life insurance with conversion

Sunrise_Sunset

Can anyone confirm if this the below is what conversion means.
For example if we take out a joint life policy with conversion for 270k over a 25 year term. When the 25 year term ends and we decide to do this conversion;

a) we would do so based on the information you already have given at the start of the policy
b) the amount we would pay per month would remain the same as what we will be paying now
c) if one of use dies during the conversion time, that the full amount of the policy would be paid out, i.e 270k?

Henry Ford III

a) Yes. No further medical evidence is required. This is the u.s.p. of convertible term.
b) No. The cost is the premium appropriate to the terms and ages at conversion.
c) Yes.

Sunrise_Sunset

I just got great quotes through Hello.ie if anyone else is looking.

Sir Galahad

Sunrise_Sunset wrote: »

I just got great quotes through Hello.ie if anyone else is looking.

What makes them great ? I'm not being sarcastic but have 37 years experience selling Life and pensions (now retired) and unless they are refunding a substantial amount of the initial commission I wonder why you think it's great.
The commission to the broker is around 110% of the first years premium. This is disclosed to you in the "Disclosure Documents" you get with the policy but nobody ever reads it. If you are trying to save money then this is where you do it. You do it on cars . . . new house windows . . . .re wires of your house etc etc so why not ask (haggle) for a refund ? Discuss.

Henry Ford III

Commission refunds are possible but the tax treatment is messy.

micar

Sunrise_Sunset wrote: »

Can anyone confirm if this the below is what conversion means.
For example if we take out a joint life policy with conversion for 270k over a 25 year term. When the 25 year term ends and we decide to do this conversion;

a) we would do so based on the information you already have given at the start of the policy
b) the amount we would pay per month would remain the same as what we will be paying now
c) if one of use dies during the conversion time, that the full amount of the policy would be paid out, i.e 270k?

I work for a life assurance company. You can take up the conversion option at any time.

However there may be a max age e.g.65 to when the option is open to you. Once you pass this age you are not entitled to it. Check the T&Cs.

Also the policy resulting from take up of conversion may also have a max age e.g 80. So you maybe restricted to the term.

There is only 1 pay out on a joint life policy. ....normally joint life 1st death but you can have joint life second death.

The death claim amount would be that at the date of death.

You can at anytime increase or reduce the life cover which would change the premium. Increases in benefit maybe subject to medical underwriting.

The J Stands for Jay

Just be careful, you need to do the conversion before the policy ends. They won't let you convert an expired policy.

micar

McGaggs wrote: »

Just be careful, you need to do the conversion before the policy ends. They won't let you convert an expired policy.

True but the life company should tell you 1) your policy is due to expire and 2) you have a conversion option in place (provided you are eligible to take it up)

Ultimately it is up to you to contact the company for conversion quotes.

Sir Galahad

Henry Ford III wrote: »

Commission refunds are possible but the tax treatment is messy.

Messy ? None of our clients ever had a problem. When you get a cheque back from a car dealer do you declare it to revenue ? There is no tax due to the client on a discount. And the broker writes it off at his end as well.


Of course the Regulator might not be happy with the broker but that won't make any difference to the OP.

Henry Ford III

Sir Galahad wrote: »

Messy ? None of our clients ever had a problem. When you get a cheque back from a car dealer do you declare it to revenue ? There is no tax due to the client on a discount. And the broker writes it off at his end as well.


Of course the Regulator might not be happy with the broker but that won't make any difference to the OP.

Yes it's messy. Most Brokers will do a deal with bigger ticket stuff by way of additional allocation for pension and investment stuff, and premium reduction for protection cases (rare though).

It's unimportant what you might have done historically, particularly if it leaves the practice open to a Revenue review. Your quotes and compliance stuff must have been a mess.

Sir Galahad

Henry Ford III wrote: »

Yes it's messy. Most Brokers will do a deal with bigger ticket stuff by way of additional allocation for pension and investment stuff, and premium reduction for protection cases (rare though).

It's unimportant what you might have done historically, particularly if it leaves the practice open to a Revenue review. Your quotes and compliance stuff must have been a mess.

Most brokers will do a deal, very few will turn down 50% of the commission plus the trailer commission that runs for the term of the policy. You are clearly a deluded industry person that listens to the LIA and takes it as gospel.

As to your comments about my historical practice, you need to check with revenue (we did) before shooting your mouth off. The written response they gave was attached to refund cheques.
And finally the organisation that purchased my clients did due diligence on files and were more than happy to pay me the multiple you may only dream about. So to level the pitch here for the others, I've disclosed that I was a regulated entity. Pray tell the readers what your status is / was ?

Henry Ford III

1/. I don't believe you.

2/. No because it's none of your business.