Stratus Case Study: Conversion Options

Over the course of our practice, we’re asked to review a lot of term insurance policies. One of the first pieces we look at is the conversion option. This section is basically a promise from the insurance company that you will still be given a preferred rate, even if your health changes.

Here’s a look at two cases where time made all the difference:

A change In condition

We had two different clients engage with us to review their term life insurance policies. Both had suffered a recent change in their medical condition. They were both worried that the rate they were given at sign up was going to change. Neither had reviewed the policies for a number of years, and both were hoping the conversion would still apply.

Same start, different ending

When it comes to your life insurance, it’s never a good idea to let the specifics get rusty. Unfortunately, as is the case with many insurance policies, one of our two prospective clients found this out the hard way. When our team began digging, we uncovered the hard truth: it was too late. The conversion option, which was excellent, had expired two years ago, and they would need to shop around for a new plan-at a higher rate.

The other, however, was in luck. They had a valid conversion option, and we were able to help them take advantage of that. They then had peace of mind moving forward. If only the first person had come to us sooner…

The hard truth

We see stories like these all too often. The truth is your policy may be excellent right now, but, over time, it needs to be reviewed. Then you’ll know for sure. It’s a lot like oiling the hinges to keep them from getting rusty. If you don’t, there’s a risk of coverage loss or rate hikes coming from your provider in the future. It begs the question – When’s the last time you had your term insurance policy reviewed?

The insurance world can be difficult to navigate. Without a clear understanding of their current plan, it’s difficult to be certain that your clients have the right coverage. If you’d like to take a closer look, you’ve come to the right place. We can answer your client’s life insurance questions and provide the clarity they need to sleep easy. Learn more about our services or to schedule a free 15 minute consultation call 951-823-8100 or click here.

Don’t let your client’s life insurance policy be among the 88% that won’t deliver when needed!

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