The new convertible term rider allows policyholders to add, within certain limits, term insurance to their personal policy. They also have the option to convert all or some of the term coverage to permanent coverage over time, according to ThinkAdvisor. Policyholders can convert their policies in years two through 10 without the need for additional underwriting.
The interest bonus helps grow the policy’s accumulation potential through a multiplier factor. Starting in year 11, the bonus is calculated based on interest earned throughout the policy year and credited annually, capped at 1%, according to ThinkAdvisor. The multiplier rate is good for the life of the policy.
Essential role for advisors emerges
Allianz Life Insurance Company of North America has added a convertible term rider and a multiplier interest bonus to its Allianz Pro+ fixed-index universal life insurance policy, according to a ThinkAdvisor report.