J.W. Larmond Life Insurance and Benefits, joins LSM Insurance to brief us on the Guaranteed Renewability Feature.
The Guaranteed Renewability Feature is a feature on your policy that allows you to renew the policy at the end of the term for a new term, without providing any medical history. For example, on a Term 10 policy, at the end of the ten years, this feature allows you to extend the policy for another 10 years at the renewal rate. This is great for a client that has had a health issue in the past and has become no longer insurable.
Unfortunately, the renewal rate usually skyrockets. If a client had any changes in their health over the term, it is best to look at some other options. This is why it is imperative that their advisor or broker contacts them prior to the renewal date to discuss the options that they have going forward.
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