Canadian insurtech innovator PolicyMe has just announced the addition of a guaranteed renewability feature to its term life insurance product.
Now, policyholders can renew their coverage annually until age 85 without having to reapply, redo the underwriting process, or undergo medical exams once their original term expires.
This new change ensures that individuals — especially those whose health or financial conditions have changed — can easily add extra years of coverage at guaranteed yearly renewable term (YRT) prices once their initial term expires.
Canadians aged 60+ are three times more likely to have at least one chronic health condition as compared to those under age 40 — the age Canadians typically apply for life insurance (Statistics Canada). This could make it more difficult — and more expensive — to reapply once the initial term has expired. Worse, a change in health increases the risk of being ineligible for a new life insurance policy, potentially leaving Canadians exposed.
"Our guaranteed renewability feature helps mitigate the risk of customers being left unprotected at the end of their policy term. It provides them with peace of mind when they need it most, enabling them to extend their PolicyMe insurance regardless of changes to their health or financial situation.” - Andrew Ostro, CEO of PolicyMe
The new feature is also a win for those who require additional financial protection and flexibility in their later years for unanticipated financial responsibilities, like financing a child’s college education, paying off the final years of a mortgage, or becoming the financial caretaker of an elderly parent. Policyholders now have more freedom and control to decide annually if they’d like to renew for a short-term policy — without the upfront commitment.
This new feature is part of PolicyMe’s ongoing commitment to providing Canadians with affordable, high-quality insurance products.
“We’re aware of the increased financial stress that Canadian families are facing today and have worked closely with our insurance partners to deliver this new feature without increasing the cost of policies during the initial term.” - Andrew Ostro, CEO of PolicyMe
Renewals adds to the list of product updates — including free child coverage and joint discounts — that PolicyMe has introduced since launching their fully underwritten term life insurance product in March 2021.
PolicyMe is also working with its insurance partners on a guaranteed conversion to permanent life insurance feature that it will launch later this year. Similarly, PolicyMe plans to offer this feature retroactively to all existing policyholders at no cost.
PolicyMe is a Canadian digital life insurance innovator built to make financial protection for families simple and affordable. PolicyMe makes it easy to get a quote and apply for term life and critical illness insurance online in 20 minutes or less. Using technology, they've streamlined the traditional insurance process resulting in a fully-underwritten insurance policy that delivers the same quality protection customers deserve but with fewer steps and lower costs.