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.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Retroactive Conversion. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: