ACA Assurance’s Term Life Policies: Term 28 – a contemporary convertible

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ACA Assurance’s Term 28 product is a very unique program. The plan provides for a level premium to age 28, and the coverage is convertible to a permanent plan. This plan is an affordable solution for students and parents and/or grandparents who want to set up a life insurance plan for a child.

The ACA Web site suggests it’s a good program for young workers; but in my estimation, it offers little value for a young adult in their 20s. They would be much better going with a traditional 10- or 20-year term policy. The costs are similar and the term can be extended in the future.

The product is convertible to an ACA permanent policy without a medical, and as an added bonus they offer a conversion credit. A few drawbacks to keep in mind—conversion rates are based on your age, and their pricing is at the time of conversion.

Moreover, ACA does not have a complete permanent insurance lineup—they do not offer a universal life policy. But they offer uniform rates for males and females, and smokers and non-smokers. This means smokers and males are getting a great deal, but non-smokers and females who live longer get the short end of the stick.