Renewable term life insurance is one of the many insurance options available for purchase. Here are some of the questions about renewable term asked most often:
What, exactly, does renewable term insurance consist of?
The definition of renewable term insurance is that it is just like the name sounds. It is a life insurance policy that you may be able to renew when the previous term expires. It is a way to continue your insurance coverage when you head into your golden years.
What are the reasons to purchase a renewable term policy?
The biggest reason is that renewable term insurance may help you continue your insurance coverage, even after your original term expires.
Could a renewable term life insurance policy end up costing more than traditional term life insurance?
Yes, it may. The older you get, the lower your average life expectancy. So generally speaking, renewable term life insurance may cost more than a traditional term.
Can I get an investment component in a renewable term?
No. Term life insurance policies typically do not have investment components. You would usually need to buy a whole life policy for that.
How long would I be able to keep on renewing the renewable term life insurance?
It depends. Generally speaking, when you buy a renewable term insurance policy, you may get to keep the same policy until you reach a set age as long as you keep on paying the premiums. This is true, even if there is the chance you may end up having health problems that could possibly prevent you from getting another life insurance policy. The renewable term age limit could be anywhere between age 65 and 80, depending on the policy.
How does someone buy a renewable term policy?
First, you may want to get a rate quote estimate online. Then, you may need to get a full-scale medical exam for underwriting purposes. The results of the exam, in addition to your desired amount of coverage, may have an effect on how much you pay for your policy premium.
How long a term of a renewable term policy would I be eligible for?
There are two options: you can buy a renewable term insurance policy that renews annually, or you can purchase a renewable term that is for a bigger time frame – more than a year. The time frames available typically depend on your personal situation.
Is it possible to take a renewable term insurance policy, and convert it into one that is permanent?
It generally depends on what your individual renewable term insurance allows.