How Guaranteed Renewable Term Life Insurance Works
If you are considering the purchase of a term life insurance policy you may be wondering what happens if you outlive the duration of your original term coverage and still need life insurance protection?
This is an important question to consider when buying term life insurance.
Why? Because, your need for life insurance may change as you get older and take on more financial responsibilities.
You may already have a job and maybe you are getting married or starting a family, but what if you buy a home or add to your family in the future?
You may have an additional need for life insurance that lasts longer than you expected when you purchased your first life insurance policy.
So, what can you do if you need protection for a period of time that is longer than the "term" of your term life plan?
That’s where "guaranteed renewability" comes in.
Guaranteed renewability means you are guaranteed the option to renew your life insurance for an additional "term" when the original policy term ends.
What does this mean to you?
It means you can extend your life insurance coverage for an additional period of time, usually up to 10 years.
And, you won’t have to take a physical exam to prove you are insurable (in good health).
You are guaranteed to get coverage for another "term" even if you have developed health issues which might otherwise make you uninsurable.
Your new cost of life insurance for the renewal term will not be based on your health, but your age at the time you renew your policy.
Basically, guaranteed renewable term life insurance means if you find you have a need for life insurance that is longer than the original term you purchased, you are guaranteed the option to extend the term should you need to in the future, when your first term life policy expires.