Frequently Asked Questions About Renewable Term Life Insurance
Renewable term life insurance provides temporary coverage that you can extend for additional periods, often year by year, without needing a new medical exam. Premiums typically increase at renewal since they’re based on your age at the time of renewal.
A quote gives you an estimate of your first year’s premium based on your age, health, coverage amount, and any riders. Each year, you can renew your policy at a new premium. Requesting a quote helps you compare short-term protection options quickly.
Yes, premiums usually start lower than level term life insurance. However, because they rise as you age, they may cost more in the long run. Level term offers predictable costs for a set number of years, while renewable term provides flexibility if you only need coverage short-term.
Absolutely. It’s ideal if you need protection for a limited time—such as covering short-term debts, a new mortgage, or income replacement during transitional years. You can keep it only as long as you need.
Yes. One of the key benefits of renewable term coverage is that you can extend your policy without undergoing another medical exam. Premiums still increase with age, so review renewal terms carefully.
Many renewable term policies allow you to convert to a permanent policy, such as whole life or universal life, within a set timeframe. This option lets you lock in lifelong coverage and build cash value without going through new underwriting.
Premiums typically rise with each renewal because they’re age-based. While this can make coverage more expensive over time, it gives you the flexibility to maintain protection during the years you need it most, or to convert when you’re ready for permanent coverage.
