ACA’s Term 28 – a contemporary convertible

Posted on February 22, 2008 and updated June 10, 2010 in Life Insurance Canada News 2 min read
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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 line-up—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.

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Alec
Alec

Why would you say this:

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.

For male smokers it’s a super deal. Sure non-smokers and females should buy something else, but it doesn’t diminish the value of the policy for those who need it.

Alec
Alec

And now I have something new to say.

Alec
Alec

Here I am typing away testing the new comments form.