Patricia, 38, bought a Term-10 policy in Alberta five years ago. She recently got married and is planning to have children. She wants to ensure her family is protected for a longer duration, specifically until her children are through university, which she estimates will be another 25 years. Her current policy has a guaranteed conversion privilege. What is the most appropriate action for Patricia to take?

Question: Patricia, 38, bought a Term-10 policy in Alberta five years ago. She recently got married and is planning to have children. She wants to ensure her family is protected for a longer duration, specifically until her children are through university, which she estimates will be another 25 years. Her current policy has a guaranteed conversion privilege. What is the most appropriate action for Patricia to take?

Answer options: ✅ Convert her Term-10 policy to a permanent policy, such as Whole Life or Universal Life, to secure coverage for the long term without new medical underwriting.

• Let her Term-10 policy renew for another 10 years and then assess her needs again.
• Cancel her current Term-10 policy and purchase a new 25-year Term policy, potentially getting new underwriting.
• Purchase a second, separate Term-20 policy to cover the additional period needed, keeping her existing Term-10.

Correct answer: Convert her Term-10 policy to a permanent policy, such as Whole Life or Universal Life, to secure coverage for the long term without new medical underwriting.

Explanation: Converting her existing Term-10 policy to a permanent plan allows her to secure coverage for an extended period (or for life) without new medical underwriting, leveraging the conversion privilege to adapt her coverage to changing needs, as per the terms of a convertible policy.