Conversion Privilege

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Dictionary Says

Definition of 'Conversion Privilege '

An insurance policy in which the insurer is required to renew or update the policy regardless of the insured's health. An insurance policy with this type of provision allows the insured to switch to a different type of policy without submitting to a physical examination.
Investopedia Says

Investopedia explains 'Conversion Privilege '

A conversion privilege also guarantees coverage and set premium payments for a certain number of years regardless of the health status of the insured. Term life insurance policies usually offer the conversion privilege option. This option allows you to convert your term policy to a permanent policy that will provide insurance for the rest of your life. Therefore, even if you are diagnosed with a serious illness at the end of your term policy, you will have the option to switch to a permanent policy without having to submit to another physical exam. In effect, this option protects the insured from being declined insurance based on a change in health.
Search results for

'Conversion Privilege '

  • 5 Life Insurance Questions You Should Ask

    http://www.investopedia.com/articles/pf/08/term_life.asp
    ... The conversion privilege might have a time limitation on it, to age 70, for example.
    Some policies allow conversion during the entire term of the policy. ...

  • 5 Mistakes That Can Ruin Your Life (Insurance)

    http://www.investopedia.com/articles/pf/08/five-insurance-mistakes.asp
    ... Also, make sure to find out if there are any restrictions on the type of policy
    available for purchase under the conversion privilege. ...

  • Series 6 Question of the Week 03/06/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/series6/030605.asp
    ... The correct answer is b. While the exchange, or conversion, privilege in a family
    of mutual funds is certainly an advantage, it is not a tax-free transaction. ...

  • CFA Level 1 Study Guide - Financial Ratios - Dilutive Securities ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/dilutive-securities.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components;
    9.10 Reporting The Retirement Or Conversion of Bonds; ...

  • CFA Level 1 Study Guide - Fixed Income Investments - The ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/embedded-option-importance.asp
    ... 9.8 Journal Entries and Accounting Impact; 9.9 Total Interest Cost Components;
    9.10 Reporting The Retirement Or Conversion of Bonds; ...

  • Top Tips For Exchanging Money - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/Top-Tips-For-Exchanging-Money.aspx
    ... what else, you'll almost always have to pay a little extra for the privilege of
    exchanging ... This is easily done on a currency conversion site such as XE.com. ...

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