Do You Need an Extension of Your Term Life Insurance Coverage?
If so, you may be wondering what options you have available to you and which may be right for you, given your current situation and future financial goals for your family.
If I Own A Term Life Insurance Policy, Can I Extend My Coverage For A Longer Period of Time Than The Original Policy Term?
Yes, in fact, there are term life policies that 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 insurance, you may select coverage for a period of 10, 15, 20, 25 or 30 years, usually.
However, when selecting to renew your coverage, your term option may be limited to a maximum duration of ten years.
When choosing to renew coverage which would extend your life insurance for a renewal term you will not have to take a medical exam in order to qualify for the renewal policy.
You qualify for coverage without an exam needed, but the rate on your renewal policy will be based on your age at time of your renewal.
What Time Periods are Offered for Term Insurance Policies?
When it comes to temporary (term) life policies, you may have the option of choosing a Policy Duration (Term) of 10, 15, 20, 25, or 30 years.
However, the longest term available will depend on your current age and health.
For example, a 30 year old may be able to buy a 30 year term policy; whereas, a 70 year old may be limited to a maximum term of 15 years.
What is Level Term Life Insurance?
Level Term is the most popular type of term insurance coverage available.
With level term your coverage amount does not decrease and your premium remains the same for the entire duration (term) of your life insurance policy.
If you pass away during the policy term, the death benefit is paid out to your beneficiary. If you outlive the policy term, there is no payout of benefits, and your coverage ends.
What is Renewable Term Life Insurance?
Renewable Term Life is term insurance that allows you to renew your policy for an additional term (usually up to 10 years) when your current policy expires.
Your premium for the renewable policy will increase based on your age at time of the renewal. However, you will not have to take a medical exam in order to qualify for the renewal policy.
If you do not have a renewable term policy, you may be able to qualify to purchase a new term life insurance policy when your current coverage ends.
Term Life Insurance Quotes
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