So you’re reaching the end of your term on your term life insurance policy. What can you do now that your policy is expiring? Should you renew your term life insurance policy or switch to whole or universal life insurance?
With term life insurance, the premiums are generally scheduled at a set rate until your term life insurance policy is up for renewal.
After that, you may want to start considering your options. Depending on your age, financial standing and physical health, your policy may renew automatically. This renewal may depend on a medical exam; consult your life insurance provider to make sure you know what’s required of you. To learn more about renewable terms, visit a page on renewable term insurance .
Is owning renewable term life insurance affordable?
Premiums may get more expensive as you get older when you have a renewable term life insurance policy. Sometimes it makes sense to switch policies from term life to a permanent life insurance policy, whether it be a whole life or a universal policy, in order to potentially cut the insurance rate. Even with a renewable term life insurance policy, you may have to go through the underwriting process again. So when you initially purchase a life insurance policy, something you may want to consider is whether the life insurance company may require “insurability” evidence.
Help guarantee renewal with insurance riders.
If you add what is known as a Guaranteed Insurability Rider or a Renewal Provision to your term life insurance policy, you can generally help guarantee yourself a renewal period at the end of your life insurance term. However, getting approval for these riders oftentimes has an age requirement or could require proof of insurability in the future. You should ask your life insurance company to find out specifics about a Renewal Provision.
You should be mindful of your age throughout the decision-making process of renewing a life insurance policy. In many cases, renewing a life insurance policy may end up being more expensive as you get older. Start researching options early; going from a term to a universal or whole life insurance may also be an appropriate alternative for you. To find out more about life insurance riders, visit our article “Why You Might Need Life Insurance Riders”.
No matter which option you choose, you may want to have life insurance to help potentially provide for your beneficiaries’ financial security. Do not leave your loved ones without the money they could need. Instead, purchase life insurance coverage to help make sure they do.
For free, no-obligation quotes, please fill out a short, simple form. Gaining security for the financial future of your beneficiaries should start today!