The primary purpose of life insurance is so that your beneficiaries receive a benefit if you die. If you buy life insurance,
not only do you want your policy to remain in effect during the specific period you designated, but you also want to be able to keep buying the insurance until you decide to stop —not when the company decides that you’ve become too great a risk.
Most term life policies are renewable — but your premium may not be the same for the renewed period. After each term (the one-, five-, or ten year period that you specified) ends, the amount you pay per year for the next term will increase.
A policy may be renewable only for a limited time (ten years, for example). So when shopping for a policy, be sure to check for how long it is renewable.
Without renewability, the insurance company can decide that it no longer wants to insure you when the term of your policy ends. Renewable term insurance insures that you can still buy life insurance regardless of the condition of your health later; after you qualify the first time, you don’t have to take any additional medical exams to maintain your policy. And because you become a bigger health risk as you age, not passing a medical exam is the danger of not purchasing a renewable policy.
Renewable doesn’t mean that you can change the face amount of your policy. If you decide that you want more insurance, the company will likely require that you pass a new medical exam to qualify.
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