Renewable Term Life Insurance
What Does Renewable Term Life Insurance Mean?
Renewable term life insurance is a policy that allows the policyholder to extend their life insurance coverage beyond the original term specified in the contract, rather than purchasing a new policy. Typically, the premium for the extended coverage will increase.
Insuranceopedia Explains Renewable Term Life Insurance
Renewable term life insurance can be a provision in a life insurance policy. Its primary advantage is that, regardless of the policyholder’s health status at the time the policy matures, they can extend the coverage by renewing the same policy for a longer term.
However, the policyholder’s health will be re-evaluated, and the results of this evaluation will usually affect the premium price. For example, if the policyholder originally purchased the policy at age 30 and it matures when they are 50, any new health issues that arise could increase the premium. Despite the potential premium increase, the amount of coverage remains unchanged.
