Will premiums go up in the event of a sickness

[Crazy Rick]

Guys,

If a client has a Guaranteed Renewable Policy: Can their premiums go up due to an illness? I believe it can.

The only thing a Guaranteed Renewable Policy states is, that it can’t be cancelled and must be renewed as long as the insured pays the premiums and the premiums can not go up due to age.

This client I have this morning is 84.

Also, if the beneficiary revceives the lump sum Death Benefit, she'll have to pay Estate Taxes yes? But not if her father (my client), writes his LI policy into a Living Trust right?

-CR

 

[Crazy Rick]

I got, I got it. The answer's no. Once written to a W/L guaranteed policy, the client can come down with incurable cancer and his policy can not be cancelled. Doi....

 

[djs]

Be very careful about terminology here. Annual renewable is different from guaranteed renewable, and a WL policy has nothing to do with either of these.

Guaranteed renewable is only done with term policies.

I have no idea what PA rules are on renewals. Okay, I have an idea, but no real knowledge.

 

[LGilmore]

"(my client)"

Are you asking as a licensed agent (who should know this stuff) or as someone from another profession?

Are you talking health insurance on one hand and life on the other?

If the client is 84 are you talking about a medicare supp? Aren't PA rules pretty straight forward?

As for the estate planning, I would strongly suggest you seek help from a more seasoned agent. You need help and not help you would find here. You need a body with you so you don't put your foot in your mouth.

Otherwise you're going to spend the entire meeting going "I don't know".

We've all been a greedy agent at one point or another in our careers. That greed usually costs us a deal or two. You either learn the stuff (which takes some time, but isn't that hard) or you seek a partner for the case.

either way good luck.