Renewable term life insurance is a policy that allows the insured to renew the coverage once the initial term expires. For instance, a policy can be renewed on a yearly basis under annual renewable term life insurance. This policy option has been attracting many customers from different walks of like because of renew-ability without the need of submitting further requirements upon renewal as proof of insurability
How this type of insurance works
Just like any other type of term-life insurance, you will need to undergo and pass a physical exam. You will also be required to submit a full medical history - that is for the initial term. However, you will not need to undergo the entire process all over again upon renewal as renewable term life does not require more proof of insurability. If you choose an annual renewable term life insurance policy, you will have this option every year. Other policies give the alternative at various time or term intervals like every 5 or 10 years.
The advantage of renewal option
As you buy your first term life insurance policy, you will specify a term for your insurance coverage - that will help the insurer give the most accurate quotes. However, you will likely be uncertain on the term that you choose - perhaps you will end-up needing longer or shorter term for your coverage and that depends on what life that lies ahead for you. When you choose this type of policy, this issue can be addressed as it can offset this uncertainty by giving you the option to renew your policy at regular intervals as well as the option of non-renewal if you realize that you do not need coverage for as long as you previously thought. Thus, you have the option not to renew at let it expire.
Renewable term is advantageous most especially for young individuals who need a temporary protection. For instance, if you choose non-renewable-policy and your health problems become acute, most likely your premium will increase, or, worse when will be no longer qualified for insurance at all. With this kind of insurance, such a scenario can be avoided. Thus, this type of insurance offers a convenient and quite affordable low-cost Term Life Insurance.
As for the final note, it is imperative that you do your own research about different types of insurance policy. It helps a lot in deciding which type of insurance that suits to your unique needs.
By: Daegan Falyn
http://www.theinsurancegps.com/
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