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Glossary > Insurance > Life Insurance > General
Legal Disclaimers

Renewable Term Life Insurance

Renewable term life insurance is a type of life insurance policy that allows the policyholder to renew the coverage at the end of the term without having to undergo a medical examination again.

Example #1

For example, a person purchases a 10-year renewable term life insurance policy. At the end of the 10 years, they have the option to renew the policy for another term without having to prove insurability again.

Misuse

One potential misuse of renewable term life insurance could be failing to understand the cost implications of renewing the policy at the end of each term. It's essential for consumers to be aware of potential premium increases that may occur upon renewal and plan accordingly to avoid financial strain.

Benefits

The benefit of renewable term life insurance is that it provides flexibility and continued coverage without the need to requalify health-wise. This can be particularly valuable for individuals who may face health changes or age-related concerns over time.

Conclusion

Renewable term life insurance offers consumers the convenience of maintaining life insurance coverage beyond the initial term without the hassle of new medical exams, allowing for ongoing protection and peace of mind as circumstances change.

Related Terms

Life InsuranceTerm Life InsurancePolicyholder

Last Modified: 4/29/2024
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