Great News from iA (Once again!) just in case you missed it! IA Is now offering Parter Conversion with Term Carry – Over! This is a great opportunity for clients looking at conversions for affordability and future planning. The Term Carry over is available on NEW Term options only as of Nov. 1st.
Additional details below:
We confirmed, the premium will be calculated as per the current conversion rules, i.e. based on the insured's attained age and the premium in effect on the conversion date. Along with the available term reset options:
Initial protection Term | Term reset insurance |
10 | 10, 20, 25, 30 |
11 to 20 | 20, 25, 30 |
21 to 25 | 25, 30 |
26 to 30 | 30 |
31 to 40 ans | Not allowed |
- Can you confirm if the term reset would apply to any term length ex. T10, T20, Pick-a-term 10-40?
- It would apply on T10, T20, Pick-a-term 10-30, and can be converted for terms equal or longer between the following duration : 10, 20, 25, 30
- Can they use this at any time of conversion, or do they have to wait until the end of the set term?
- They can use this at any time within the current conversion age limits
- That it said, the commission chargeback and conversion charges are applicable for the first 2 years
- Are there any limitations on how many times the client could use the conversion and carry-forward term rule?
- Ex. T10 $500K, we then convert to $250K of PAR, Reset the Term 10 to $250K, would the client then be able to convert 50% of the $250K T10 and reset the PAR?
- Once it is converted, the Term 10 became a 10 year Term Reset Insurance.
- This Term Reset Insurance benefit can only be converted to permanent insurance
- Ex. T10 $500K, we then convert to $250K of PAR, Reset the Term 10 to $250K, would the client then be able to convert 50% of the $250K T10 and reset the PAR?
- Will we still have term 10 switch in the first 5 years available?
- Yes, this doesn't change