Renewable Term Life Insurance
Renewable term life insurance is a type of life insurance that has a term, meaning a length of time that the insurance is in effect. Once the term is completed, the policy owner will have the ability to renew the policy, if they would wish to. Most often, in order to renew the policy, they must still be considered insurable by the insurance company.
Renewable term life insurance usually has a limited number of terms that it can be renewed. Also, as the policy holder ages, the premiums increase, as they are a higher risk to insure for the life insurance company. The policy owner needs to carefully consider when looking at possibly renewing their life insurance whether or not the cost of the premiums is worth the total amount of the insurance policy. You do not want to be paying more for your life insurance than it would be worth should you collect.
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