Term Life Insurance - Renewable Term Life Explained

Another type of life insurance that I want to explain to you is called Term life insurance. Term life insurance is the least expensive life-insurance coverage that there is. This type of life insurance has become much more popular recently because of the lower premiums. There is no cash value build up with Term life insurance. This is known as pure insurance only, meaning that 100% of what you pay is going toward the purchase of life insurance coverage for you.

There are a few different types of Term life insurance that are available. Those are Non-Renewable Term, Renewable Term, Convertible Term, Re-Entry Term, Deposit Term, Level Term, Decreasing Term and Increasing Term. Each one of these is designed to provide coverage for you for a specific term or period of time. Term life insurance wasn't meant to be permanent coverage. However, if you're looking for something that you're going to be able to hold onto for several years I highly recommend that you look into Renewable Term policies. This is how Renewable Term works.

You can renew this type of policy at the end of the period without having to take another medical exam. Here is an example of how this works; Let's say that you have a 10 Year Term Renewable Term policy. You take your medical exam and passed with flying colors. Let's say that over the course of the next several years your health declines. In this case, it won't matter because of the policy that you have chosen. At the end of your 10 year term you'll be able to renew your policy again, regardless of your health. Renewable Term costs increases on a regular basis as you grow older, however, once you pass the initial medical exam you can carry this policy for as long as you need it, although you must maintain the premiums in full and on time.