The Renewable Term Life Insurance Policy

Renewable term insurance provides insurance protection without building cash value.

Individuals who want life insurance coverage for a relatively low initial cost may elect to purchase a term policy. One form of term insurance available is the renewal term policy.

Function

Renewable term insurance provides a level death benefit over time without building cash value. As the policyholder ages, the premium increases accordingly. The policyholder can elect to renew the policy at the end of the term regardless of her health condition.

Time Frame

Renewal term may be purchased for a variety of term lengths. The policyholder may wish to renew the coverage on a year-to-year basis or purchase the coverage for specified periods of time like 10 or 20 years.

Considerations

Because the premiums continue to increase over time and the policy builds no cash value, the policyholder may elect to covert to a permanent form of insurance such as whole life at some point. Usually this can be done regardless of health as long as the policyholder converts the policy within a specified time period.

References

• All Insurance Info: Renewable Term Insurance