tag:blogger.com,1999:blog-6660460810418738523.post7923794717494487098..comments2023-10-11T07:00:28.936-04:00Comments on RISCARIO INSIDER: CASE STUDY: WHAT TO DO WHEN YOUR TERM 10 RATES ARE ABOUT TO SPIKEUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6660460810418738523.post-77570168251972484052010-07-20T16:35:36.467-04:002010-07-20T16:35:36.467-04:00Thanks for your detailed comments, Ami. I used Lif...Thanks for your detailed comments, Ami. I used LifeGuide for the market comparison :)<br /><br />As you point out, renewal rates are important. The initial rates were competitive but renewal rates were not. They were higher by hundreds of dollars a MONTH. That's a hefty penalty and a consequence of not looking at the market. <br /><br />While a term quote seems simple, there are many unseen considerations.Promodhttps://www.blogger.com/profile/11239089296177027814noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-35285878767110772902010-07-19T01:22:05.265-04:002010-07-19T01:22:05.265-04:00Good points; well done.
I would add that even tho...Good points; well done.<br /><br />I would add that even though it may not be instantly apparent, term insurance products (T10, T20, etc.) vary substantially. This includes substantial variations in contract wording, provisions, etc. One of the areas of variance is in the conversion options and the wording of the convertibility clause in the contract itself. READ and understand the contract wording before signing on the dotted line.<br /><br />Another point that I'd like to make relating to "term" is that, unless you are absolutely certain that:<br />a. You will not need the coverage beyond its initial level premium period;<br />OR<br />b. You will be in good health and have no contraindicating underwriting issues at renewal;<br />AND<br />c. You will not be considering conversion;<br /><br />then you should carefully examine:<br />a. Renewal and overall costs;<br />b. The maximum period during which you may continue to renew the coverage.<br /><br />One of the best ways to do that is to request that your advisor provide you with a LifeGuide Internal Rate of Return comparison for the duration of need for coverage, along with the initial premium cost comparison. The two comparisons will likely vary since renewal rates on "term" vary among the offerings more substantially than initial period costs.<br /><br />Promod, you mentioned that the advisor in this case provided an offer from only one company. This is an important point; however, it should be noted that, unless the advisor was using LifeGuide, there is no assurance that the scope of the survey (ie the product offerings that were considered) were not artificially selected to pre-determine the results. The CBC did an expose on this very issue a few years ago and was quite critical of the practice.Ami M.noreply@blogger.comtag:blogger.com,1999:blog-6660460810418738523.post-24107892805177649122010-07-19T01:20:56.006-04:002010-07-19T01:20:56.006-04:00Good points; well done.
I would add that even tho...Good points; well done.<br /><br />I would add that even though it may not be instantly apparent, term insurance products (T10, T20, etc.) vary substantially. This includes substantial variations in contract wording, provisions, etc. One of the areas of variance is in the conversion options and the wording of the convertibility clause in the contract itself. READ and understand the contract wording before signing on the dotted line.<br /><br />Another point that I'd like to make relating to "term" is that, unless you are absolutely certain that:<br />a. You will not need the coverage beyond its initial level premium period;<br />OR<br />b. You will be in good health and have no contraindicating underwriting issues at renewal;<br />AND<br />c. You will not be considering conversion;<br /><br />then you should carefully examine:<br />a. Renewal and overall costs;<br />b. The maximum period during which you may continue to renew the coverage.<br /><br />One of the best ways to do that is to request that your advisor provide you with a LifeGuide Internal Rate of Return comparison for the duration of need for coverage, along with the initial premium cost comparison. The two comparisons will likely vary since renewal rates on "term" vary among the offerings more substantially than initial period costs.<br /><br />Promod, you mentioned that the advisor in this case provided an offer from only one company. This is an important point; however, it should be noted that, unless the advisor was using LifeGuide, there is no assurance that the scope of the survey (ie the product offerings that were considered) were not artificially selected to pre-determine the results. The CBC did an expose on this very issue a few years ago and was quite critical of the practice.Ami M.noreply@blogger.com