Looking at Renewal Guarantees in St. Augustine Life Insurance

Insurance is an area of expense that is all about predictions and expectations. Everyone expects to pass away at some point, and they expect their family to be taken care of. But, of course, it is impossible to predict when this is, and the classic ‘it won’t happen to me’ logic could be disastrous in the aftermath of a tragedy.

Life insurance is not the most exciting of topics, but it is certainly humbling. The best way to ward off any fear of this topic is to understand it and make it transparent. Term life insurance is the most affordable policy out there, because it remains consistent and is directed typically as a blanket policy (death= payout), and it does not account for large quantities of assets. This is why it is commonly considered the ‘everyman’s life policy. With that said, one important consideration to term life is the renewals, which will be detailed below.

What is a Renewal Guarantee?

The concern for most people is the monthly cost of life insurance. They are afraid the cost will jump when the term ends. These cost jumps are a combination of two main points:

•  The results of an updated medical test
•  The age of the individual

The latter cannot be avoided, and some price increase for term life insurance over time is expected. What a renewal guarantee does is that it does not demand an individual to take an updated medical test. In theory, if it is renewed for life the policy holders will take the medical results that were done originally and account for the health of the individual when they opened the account.

Why A Renewal Guarantee is Necessary

No one can predict what will happen to their health. During the process of ill health, finances often become incredibly overbearing. What this renewal avoids is the price kick that occurs with an updated medical test, especially when someone has poor health.

This avoidance is paramount to keeping term life insurance more than affordable for years and even decades. Term life insurance is not the bottom barrel option many people believe it is, especially when it is explored and understood.


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