Renewable term

Renewable Term Life Insurance

A life insurance policy that provides coverage only for a certain period of time, but which may be renewed at the end of that period. A term life insurance policy provides a benefit upon the death of the policyholder, but ceases to provide this benefit if he/she is still alive when the policy expires. Upon expiration, the policyholder may decide to renew the policy or let it lapse. If the policy lapses, the policyholder is not reimbursed for the premiums paid over the life of the policy. Like other term life policies, renewable term life insurance does not include some of the other benefits of a whole life policy, such as a savings component.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Renewable term.

A renewable term life insurance policy allows you to extend your coverage for an additional period without having to requalify for coverage, provided that you have paid your premiums in full and on time.

Being able to renew your policy can be an important advantage if your health has declined since your original purchase. That's because another insurer might refuse to sell you a policy or might charge more for comparable coverage.

Renewable term policies do not guarantee the same rate for the new coverage period. In fact, at each renewal, the cost is likely to increase to reflect the fact that you're older and therefore pose a greater risk to the insurer.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The membership will be of a renewable term of one year.
The board will serve for a renewable term of three years.
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The new Board serves for a renewable term of three years, it added.
He will hold the position for a five-year renewable term.
The permit is valid for a renewable term of one year.
The board of directors will remain in place for a renewable term of three years, according to the report.
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The Bank said Mr Woods will remain as the PRA's executive director of insurance until he takes up the role on July 1 on a renewable term of five years.