Which of the following reasons makes a convertible term policy more suitable than a unit-linked whole of life policy?

A convertible term policy is often considered more suitable than a unit-linked whole of life policy for several reasons. One primary advantage is cost; convertible term policies generally have lower premiums compared to unit-linked whole life policies, especially during the early years when the insured is younger and healthier. This makes them an attractive option for those who may be budget-conscious but still want life coverage.

Another important aspect is the flexibility of premium structures. With a convertible term policy, the premiums can be level, providing the policyholder with predictable costs over the term of the policy. This contrasts with the unit-linked whole of life policies, where premiums may fluctuate depending on the performance of the investments linked to the policy.

Additionally, a convertible term policy is well-suited for individuals who need to protect against income loss until retirement. It allows them to secure life insurance coverage during their working years when financial responsibilities are typically higher. Should the policyholder wish to transition to permanent coverage later, they can convert their term policy without undergoing further medical examination, which provides an added layer of security for future insurability.

Each of these factors contributes to why a convertible term policy may be seen as more advantageous in certain situations, aligning well with the needs of individuals seeking affordable, flexible, and appropriate