1. The policyholder who chooses to surrender the policy will not only bear the larger surrender loss, but also purchase the insurance after surrendering the policy. The policy entry age is the same as the original policy.
2. If you buy insurance after surrendering your policy, the insurance company needs to re-underwrite it, and the insured faces the risk of being denied insurance and increasing premiums. By adjusting the insurance plan through “policy conversion”, insurance companies generally do not conduct secondary underwriting, and calculate the premium rate in full accordance with the underwriting level of the insured when they first applied for insurance.
Based on this, the insured should make full use of the convertible rights conferred by the policy when adjusting the insurance plan, and achieve the purpose of improving the insurance plan through policy conversion as much as possible.
Common Considerations for Policy Switching
The time when a policy can apply for conversion is usually between a certain period of time when the policy is fully covered and a certain period before the payment period expires.
When the policy is converted, a certain fee might be deducted.
转换后保额的变化 Face Amount
Occasionally, after completing the policy conversion, the sum assured may be significantly reduced if the premium is not increased.
转换后收益的变化 Growth Change
Sometimes after completing the policy conversion, the same premium, the insured amount will not necessarily decrease, but the expected average yield will decrease.