Definition of Guaranteed Renewable Life Insurance
Guaranteed renewable life insurance policies are typically defined by insurance companies in a very particular way. Get a definition of guaranteed renewable life insurance policies with help from a certified financial planner in this free video clip.
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Hi, I'm Karen Lee. I'm a certified financial planner and the owner of Karen Lee and Associates and a registered representative with LPL Financial. Today we'd like to define for you what a guaranteed renewable life insurance policy is. Guaranteed renewable is a term that usually applies to term life insurance and what this means is that for some length of time, the insurance company guarantees that you can keep this policy in force regardless of your health. Most companies make this possible for a period of time or up to a certain age. Looking at a period of time, most term life policies are issued for either 10, 15, 20, 25 or 30 years. That number defines the length of time that the company guarantees the renewability of your policy. In other cases, some insurance companies simply state an age at which you are guaranteed that you can renew your policy up until. Now that varies from one insurance company to another but typically that guarantee will be somewhere between age 75 and 100. Last but not least, an important benefit of a guaranteed renewable policy is that they are typically convertible to permanent insurance without proof of insurability. What's important about this is if while you own term life insurance, you become uninsurable, unhealthy but you still expect to live a long time and want to make sure you still have life insurance through your death, you should look at converting your term life insurance to a permanent life insurance policy with the company you have your term life with. So I hope that answers your question of what is guaranteed renewable life insurance. My name is Karen Lee. I'm a certified financial planner, the owner of Karen Lee and Associates and a registered representative with LPL Financial.