Term

15 Year Renewable and Convertible Term

Original line of business: Commercial Union

Updated on: Dec 12, 2018

Product snapshot

The 15 RCT is a renewable and convertible term plan providing level coverage to age 75 with premiums renewing every 15 years at the attained age.

Basic product information

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus: N/A

Dividend options

N/A

Bonus

N/A

Premium paying period

Premiums renew every 15 years 

  • There are three options available at each renewal date: 

Renewal options

  • The policy will renew for the premium shown on the renewal premium provision page of the policy

Conversion credit options

  • If conversion takes place at a renewal date then a conversion credit will be applied toward reducing the premium of the new policy
  • The conversion credit is one half of the total premiums paid for the basic sum insured since the beginning of the 15 year period
  • Conversion credits are available at the end of years 11, 12, 13, 14 and 15 of each 15 year term of the policy
  • The amounts of conversion credits at such times are 20%, 40%, 60%, 80% and 100% respectively of the conversion credits for the applicable 15 year term
  • Conversion credits are not available after their final conversion date
  • If the conversion credits are greater than the initial premium on the new policy, the excess is carried forward without interest to future premiums until the credits are exhausted
  • Conversion credits cannot be taken in cash      

Cash back option 

  • This option is available at the end of each 15 year period and at the policy anniversary nearest the insured's age 75
  • The amount of the refund is one half of the sum of all premiums paid for the basic sum insured since the beginning of that 15 year period
  • At the policy anniversary nearest age 75, the amount of the refund will never be less than the cash back amount which would have been available at the previous renewal date
  • All coverage under this policy terminates if the cash back option is chosen  

Policy fees

$50.00

Deposit load

N/A

Values, loans & withdrawals

Non forfeiture option: N/A

Loans: N/A

Withdrawals: N/A

Non-forfeiture option

N/A 

Loans

N/A 

Withdrawals

N/A

Cash value

No cash values

Reduced paid up

N/A

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday

N/A

Death benefit

Basic coverage only

Reinstatement period

Can be reinstated any time within 2 years after the date of grace period, subject to reinstatement requirements

Convertible 

The right to convert extends to the policy anniversary nearest the life insured's 65th birthday. In the case of a joint life plan, the policy is convertible to the older life insured's age 65. Conversion may be to any level premium/level sum insured permanent plan offered by the company and premium rate used for conversion is that at the life insured's then attained age