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After 20+ years in DI brokerage, I find that many agents are still confused by the terms Guaranteed Renewable (GR) and Noncancelable (NC).

Guaranteed Renewable (GR) is a policy provision which is named logically. It provides that if you pay the premium on time, you are guaranteed to be able to renew your policy. Most individual DI policies are guaranteed renewable to age 65, then conditionally renewable for a period thereafter, with the condition usually being that the insured is working 30 hours per week. Long Term Care (LTC) insurance policies, by contrast, are guaranteed renewable for life.

Noncancelable policies are actually Noncancelable and Guaranteed Renewable (NCGR). The word noncancelable generally means non rate changeable. Almost all NCGR DI policies have rates guaranteed to the end of their guaranteed renewable period. The guaranteed renewable period is most commonly to age 65.

So, the main difference between GR and NCGR is that the rates are guaranteed with NCGR. That noncancelable feature is terrific. It is a feature that you will not find in any currently sold LTC or health insurance policy. Try to imagine what a carrier would charge for a NC rider on a LTC or Health Insurance policy: 10%? 30%? 50%? I think it would be close to 50% for LTC and maybe 100%+ for health insurance. It is a 15-25% load on a DI policy. Most carriers do not allow you to remove the NC feature to save 15-25%. One carrier in CA does have the NC provision as an option.

Many business owners and professionals over age 40 are choosing to buy more coverage at the discounted GR only rate with this carrier. The definitions of eligibility are just as good as NCGR. These new older applicants are in their peak earning years, and are the most vulnerable they have ever been to accident or sickness. A 25% premium discount can make the difference between being an insured policyholder or self insuring your biggest asset, your potential income.

At age 45, many workers still have a potential income worth millions of dollars. Please help people understand this and help them protect this largest of assets - the ability to earn an income.

Contact my office and we will show you how it is done. It is not brain surgery. We will make it easier for you.