Some insurance companies offer a benefit with their life insurance policies called a guaranteed renewable premium. The benefits of a guaranteed renewable premium include keeping the same premium rate for the entire term, keeping the same premium for one or more terms depending on the policy and not having to take an additional health exam or provide insurability. Life insurance is going to cost more the older a person gets and should always be purchased at a young age.
A guaranteed renewable premium is a benefit that can keep the amount of premium the same for the length of the policy. It is designed so that a slightly higher premium is paid for the benefit but the rates upon renewal of the policy will not change depending on the type of policy that was purchased. A guaranteed renewable premium is a good option if a person ever develops health problems. Usually a person is bad health is going to pay more or be declined for a life insurance policy. A guaranteed renewable premium reduces the worry about paying higher premiums for an insurance policy as things change over time.
Another benefit of a guaranteed renewable premium is that an insured can keep the same premium for one or more additional terms depending on the policy. A term life insurance policy is a good example because the insurance policy expires at the end of the policy term. This can be anywhere from ten to thirty years depending on the length of the term. A guaranteed renewable premium is that a term policy can be renewed for an additional term without the premium increasing because of the insured’s age or health. This is a great benefit for people to have because a person’s health can change considerably over time.
One of the best things about a guaranteed renewable premium is that an insured is not required to take an additional health exam at renewal or purchasing an additional term. This means that if an individual were to become ill they can still purchase additional insurance or renew their term insurance policy without needing to take another health exam or providing any other proof of insurability. Since a person’s health can change at any time it is a goo idea to always get a guaranteed renewable premium or some other type of guaranteed benefit to add to an existing life insurance policy.
Life insurance should always be purchased at a young age because it will cost more for life insurance as people get older. Many people don’t think to purchase life insurance when they are young because they are relatively healthy and do not see the need. With the benefits that are provided with a life insurance policy such as a guaranteed premium everyone should have some kind of policy in force.