What Does Renewability Mean In Term Insurance?

WHAT DOES RENEWABILITY MEAN IN TERM INSURANCE?

Term insurance life policies may have an option to renew your insurance contract (usually the same amount of the initial length of your contract.) For example, if you purchase a 10-year term life policy, at the end of your 10th. year, you have an option to renew your insurance policy without a medical examination or other evidence of insurability. You should keep in mind that your age also has a big impact on the renewability, where an insurance company may not be renewing your policy after a certain age. And further more, because of your age, your premiums will also be higher at the time when you are renewing your term policy for a new period.

When a term policy contains no renewal privilege, or if it contains evidence of insurability, you may or may not be able to continue your coverage as long as you need it.