What must be disclosed to a consumer when offering life insurance?

When offering life insurance, it is essential to disclose any exclusions, limitations, and the terms of renewal to the consumer. This requirement is rooted in the principle of transparency and informed consent within the insurance industry. Consumers have the right to fully understand what they're purchasing, including any potential restrictions that might affect their coverage, such as specific scenarios where the policy would not pay out. Additionally, knowing the terms of renewal is crucial because it impacts the policyholder's ability to maintain coverage as their circumstances change over time.

Disclosing these important details helps consumers make more informed decisions about their life insurance options, ensuring they select a policy that meets their needs without any unexpected surprises down the line. This practice also aligns with regulatory standards aimed at consumer protection in insurance transactions, promoting ethical practices within the industry.