Inforce Certification - Module 15: Term Conversions

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services.

Module Overview:

Module 15: Term Conversions

This module covers term conversions, allowing policyholders to exchange a term policy for a permanent plan. It explains time frames, underwriting exemptions, partial and full conversions, higher premiums, and cases where conversion rights may not be available.

Learning Objectives

• Define term conversion and its purpose.

• Understand the timeframe for term conversions and their limitations.

• Describe the process of converting a term policy to a permanent policy.

• Recognize that there is typically no underwriting involved in conversions, but optional riders may have full underwriting.

• Explain why converted policy premiums are usually higher than the original term premiums.

• Identify situations when term policies do not have conversion rights.

COURSE CONTRIBUTORS