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Do NOT buy term life insurance online until you understand RENEWABLE vs NON-RENEWABLE policies
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- Опубликовано: 9 авг 2024
- Before you buy the cheapest term life insurance policy you can find online, you need to understand the feature of guaranteed renewability. Some of the lowest cost policies are missing this feature (to get the lowest price), but you might find that a policy that is guaranteed renewable makes more sense, and the increased cost might be pennies.
I asked the Financial Services Regulatory Authority of Ontario (FSRA) for their comments about online life insurance advertising and their entire response is posted below in quotes. There is some valuable information here to consider (and I think the general info is relevant to jurisdictions outside of Ontario, too):
"In Ontario, consumers access a wide range of life insurance products in a robust and highly competitive insurance marketplace. FSRA promotes high standards of business conduct by licensing and supervising life insurance agents in Ontario. FSRA protects Ontario consumers by helping to ensure they are treated fairly. Life insurance agents are duty-bound to provide their customers with products that meet their needs. In addition, FSRA expects agents to follow best practices to demonstrate that products meet customers’ needs and that customers understand what they are buying. All promotional material must be accurate, clear, and not misleading. Although comparison websites or advertisements might reference an average price, it’s important to remember that the cost of each customer’s insurance will be determined by the type of life insurance and features they choose and the underwriting risk they present to the insurer. FSRA encourages consumers to take the time to learn about the life insurance options available to them. Consumers should consider working with a licenced life insurance agent to help with their life insurance needs. If someone feels they are being misled and not being treated fairly they can contact FSRA to make a formal complaint."
00:00 Intro
02:00 Example term life policy
02:55 Renewable term life
04:55 Getting sick during your term
06:22 If you are healthy at end of term
07:15 If you are NOT healthy at end of term
08:40 Are renewable policies more expensive?
10:36 Actual quotes compared
12:00 Personally I would only ever get renewable term
12:30 Life Insurance Needs Analysis
Free insurance quoting website mentioned in the video:
United States: www.winquote.net/quote_life_u...
Canada: www.winquote.net/quote_life_c...
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I laughed when you said that Matthew Inglis had some strong opinions about PolicyMe ads and non-renewable. Matt and ‘strong opinions’ are synonymous 😂. He’s as subtle as a sledgehammer. Great video!
Valuable info here. Thank you.
great job explaining
Thank for this info brother.... Fan from India... Fan of rela knowledge..
Thanks! I liked your illustrations and giving me some useful tips
You are most welcome and thanks for the Super Thanks! That’s my first one ever! 😊
Thanks for the video! From Singapore
Thanks for watching!
Love it
Thank you for the highly educational content!
You're welcome!
Preet, thanks for the content! One note you may find interesting is that Primerica, as far as I know, is the only insurance company that allows premiums to stay level even after the initial term without requalification. The compromise is that the original term policy converts to a decreasing term policy. So premiums level but death benefit decreases out to age 100 and is guaranteed.
Thank you for the great videos. Do you have any suggestions about shopping for and purchasing a SPIA in the US? I am about your age, and I am considering early retirement.
I would definitely get a planner to model some scenarios. Coordinating various income sources and timing social security benefits is hard to do without dedicated planning software. A fee for service advisor (charges by the hour or project) might be well worth the money to help figure out a plan that works best for your individual situation. Good luck! Good position to be in 😊
Do you have a video or information on convertible life insurance?
Hi Bryan, not as of yet. It's on the ever-growing list of future videos.
Greetings. The Winquote link is no longer available. would you an alternative link to share. Thx in advance.
I do not know where Preet is getting these numbers for. In the U.S. market because maybe he is not referencing that renewable term policies are renewable yearly. Not for another full term. Premiums tend to skyrocket much faster than portrayed in this video.
These are actual quotes for the Canadian market.
In the video description you will find the quoting software and look them up to verify. Rates vary over time of course, but the premium ramp ups will follow the same general trends.
@@PreetBanerjee The U.S. market is significantly different in this area. Policies are renewable but rates increase drastically every year after the term has ended.
@@keithfriedman8541 Thanks for highlighting that. From what I can tell, the same general advice would apply? That while guaranteed renewal premiums (increasing annually) would be higher than re-qualifying as healthy, if you could not re-qualify as healthy the policy would be a better ROI than trying to get a rated policy after the initial term? (Or not being able to get covered?)
@@PreetBanerjee US term polices are a bit different than Canadian upon renewal. As pointed out, they have 1 Year Term renewals. Canadian policies are a bit more mixed up, often the renewals for Canadian policies these days are 10 year term. So if you buy a Term 20, in 20 years it renews as a term 10 (premiums level every 10 years, instead of every year like US term). The other thing I've seen in the past from US policies is something called a 'Re-Entry' premium. This is the premium you get at renewal if you requalify medically - so no different than a new policy in terms of obtaining it. I've never seen a Canadian company with re-entry premiums on renewal for term.