What Is Renewable Term Life Insurance?

Sep 17 • Finance • 722 Views • Comments Off on What Is Renewable Term Life Insurance?

When it comes to life insurance, you have many options. One of the least expensive life insurance policies is an annual renewable term policy. The premium generally starts out low, but typically increases in rate each year.

There are many types of life insurance. One of them you may want to consider is what is known as renewable life insurance. Here are some of the things you need to know when it comes to your life insurance rates.

Renewable term life insurance is a term life insurance policy that is renewable once the initial chosen term of the policy is over. For example, you would have the option to renew an annual renewable term life insurance policy every year. Some consumers find a renewable term life insurance policy convenient because you have the option to renew the policy without having to keep providing evidence of your insurability each time.

What Is Renewable Term Life Insurance?

Standard Term Life Insurance vs. Renewable Term Life Insurance

With a standard term life insurance policy, the term of the policy is available for a period from 5 to 30 years (depending on the term you choose). The death benefit is generally paid to the beneficiary if the insured person dies while the policy is still active and premiums are paid up. At the end of the chosen term, the insured person must typically reapply for coverage under the standard term life insurance policy, which could mean a difference in life insurance rates.

When you purchase most types of life insurance policies, you must first undergo a physical examination and a questionnaire about your medical history, unless you opt for a no exam life insurance policy. According to most term life insurance policies, once the term  of your policy has expired, you generally must undergo the medical evaluation again if you would like to extend the term of your life insurance policy. However, with a renewable term life insurance policy, you may typically renew your life insurance policy under the original terms, without having to undergo another physical examination or submit further personal medical information.

Renewable term life insurance policies are generally renewable for varying terms, depending on the term you choose – such as annual renewal of your policy or you may choose to have your policy renewable at other intervals, such as at five and ten year renewal intervals.

If you are single, getting married, starting a family, or in any situation where you are not certain what your financial obligations may be like within the next few years, a renewable term life insurance policy may be a good option. If you find a policy at a premium cost that is affordable, you will typically have the option of renewing the policy if you would like, depending on your financial situation. Having a renewable term life insurance policy may offer more flexibility than a standard term life insurance policy.

When shopping around for term life insurance, you generally must specify a term period of coverage for which you would like to purchase coverage. Be sure to obtain quotes from different life insurance companies to find the best policy to suit your needs and budget. Getting a renewable term life insurance policy may give you the ease of mind of having to worry about choosing a definitive coverage term and knowing you may renew your policy without the hassle of having to reapply or shop around for another policy again, if you so choose.

To learn more about renewable term life insurance and life insurance rates, visit BestLifeInsuranceDeals.com.

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