Renewal of a Life Insurance Policy
What is a Life Insurance Renewal?
It’s when your life insurance policy expires and you choose to renew your coverage for another term.
What Type of Life Insurance offers Renewal?
Term life insurance offers the option to renew your coverage for an additional period of time (term).
Does It Cost More to Renew a Life Insurance Policy?
Yes, the premium you are charged per year for your renewal policy will increase based on your age at time of renewing the policy.
How Long Can I Renew My Life Insurance Policy For?
Many insurance companies offer renewal of a term life insurance policy for a duration of up to 10 years, usually.
Do I Have to Take a Physical Exam to Renew My Life Insurance?
No, if you have the option of renewal in your term life policy contract, then you are not required to take any physical examination in order to qualify for renewal of your coverage.
When Should I Consider Renewal of My Life Insurance?
Your term life insurance contract should state a date by which you must advise the insurance company that you want to renew coverage for another term.
Who Should Renew Life Insurance Coverage?
If you have a need for life insurance longer than the period of your current life insurance policy term, then you should renew your life insurance policy for another term.
What If I Forget to Renew My Life Insurance Plan?
Then your life insurance policy expires and you have no coverage. You may choose to purchase a new term life policy, but you may be required to take an exam.
Renewable Term Life Insurance Coverage
Life insurance coverage that is renewable at the option of the insured who is not required to take a medical examination.
Regardless of physical condition, the insured must be allowed to renew the 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.
Renewal Provision for Life Insurance
Clause in a life insurance policy that permits an insured to renew the policy without having to take a medical examination, regardless of his or her physical condition; the premium cannot be increased to reflect any adverse medical condition.