What does Retroactive Conversion mean? Read on to discover the definition & meaning of the term Retroactive Conversion - to help you better understand the language used in insurance policies.
Retroactive conversion is when a life insurance policy is converted to its cash value. However, instead of the cash value beginning to accrue on the date of the conversion, it is generated from the initial date that the policy was issued, which makes the cash value much higher than it would otherwise be.
We hope the you have a better understanding of the meaning of Retroactive Conversion.