Guaranteed Renewable/Insurable/Non-Cancellable
Guaranteed Insurability vs. Guaranteed Renewable
Both have the word Guaranteed at the front so let’s throw that out … Insurability … versus Renewability.
Guaranteed Insurability means just that, you are going to pay for a rider that is going to guarantee to make you Insurable. Maybe you are young and just starting out in your career – the good news is you are healthy, the bad news is you can’t afford the best Life or disability policy. You can pay to have a standard policy with a Guaranteed Insurability rider. That means down the road, typically every 3rd or every 5th year … or if you get married or have a child … the insurance company MUST allow you to buy more Life or Disability insurance … even if you now have cancer, grown a 6th or 7th toe, or for some reason are no longer insurable and wouldn’t pass underwriting like you did when you first took out the policy.
Guaranteed Renewable …. means just that … the insurance company MUST renew your policy. Think about car insurance, you get into enough accidents your car insurance company can drop you or not renew you … if you buy a policy that is Guaranteed Renewable you MUST always be offered a renewal … but the insurance company CAN change the price at renewal.
(Oh, by the way Guaranteed Renewable means the insurance company MUST offer you a renewal each year, though they can change the price …. “Non-cancellable” means that they MUST offer you a renewal and they MUST keep the PRICE the same.)
Recommended: Gold
The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about L&H GOLD
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