How Renewable Term Life Insurance Works And Why It's A Great Choice
Renewable term life insurance is fairly common nowadays, because it's inexpensive, flexible, and easy to maintain.
For example, say you've set up your renewable term life insurance policy to pay out 1 million dollars if you die. This policy has you pay a fixed premium each year for the next 10 years (the term period).
At the end of 10 years, you can easily keep all of the same conditions and payment sum of the first term policy, just renew the policy at a higher premium (because you're older, it will now be more expensive).
One great thing about renewable term life insurance is that you only have to visit a doctor once for your initial policy. One it's set up, you will most likely never have to go back for an exam, even when you renew your policy!
Term periods are usually in increments of 5 years, but if necessary you can set up your policy to renew every year. While this may be more expensive than having longer term periods, you have a lot more flexibility to change providers or alter your policy with annual renewals.
Renewable policies are the most popular because of their ease and reliability. Some life insurance policies are non-renewable, which can place you in a tough spot when that policy ends and you still need affordable life insurance!
Although renewable term life insurance policies are slightly more expensive than non-renewable ones, I highly recommend paying a slightly higher premium for more long term benefits and peace of mind.
