Learn About Extending Term Insurance Policies
If I own a term insurance policy, can I extend my life insurance coverage for a longer period of time than the original policy term?
Yes, most term policies offer the Option of Renewability.
A Renewable Term Life Plan means you may renew your coverage for an additional term if you choose to and advise the insurance carrier by a specific date stated in your insurance contract.
With term life you may select coverage lasting for a period of 10, 15, 20, 25 or 30 years, usually. Some insurers do offer 35 or 40-year level term life plans.
However, when selecting to renew your life insurance coverage, your term option may be limited to a maximum duration of 10 years.
When choosing to renew coverage which would extend your life insurance for a renewal term you will not have to take any health examination in order to qualify for the renewal policy.
You qualify for renewal coverage without any exam needed, but the rate on your renewal policy will be based on your age at time of your renewal. So, your renewal policy will likely cost more per year than your original term insurance plan.
Benefits of Renewable Term Insurance
There are several benefits to extending your life insurance coverage on a term life policy.
What is Renewable Term Life Insurance?
It’s life insurance that’s renewable at the option of the insured, who is not required to take a medical exam to qualify for the renewal policy.
Regardless of health status, the insured must be allowed to renew the term life policy and the premium cannot be increased to reflect any adverse physical condition.
However, the premium of each renewal increases to reflect the life expectancy of the individual at that particular age.
What is a Life Insurance Renewal Provision?
It’s a clause in a life insurance policy that permits the insured person to renew coverage without having to take a doctor’s exam, regardless of his or her physical condition; the premium cannot be increased to reflect an adverse medical condition.
Term Life Insurance Quotes
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Can Term Insurance Be Extended?
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