Renewable Term
A clause in a term insurance contract that allows the beneficiary to extend the coverage term for a set period of time without having to requalify for coverage. A renewable term is contingent on premium payments being up to date, as well as a renewal premium being paid by the beneficiary. Investopedia Says:
In the context of a life insurance contract, having a renewable term clause would be beneficial, as future health circumstances are unpredictable. Although the initial premiums are likely to be higher than those of a life insurance contract without a renewable term clause (the insurance company must be compensated for this increase in risk), buying this type of insurance is often in the beneficiary's best interest. Related Terms:
Decreasing Term Insurance
Floater Insurance
Guaranteed Renewable Policy
Insurance
Insurance Score
Life Annuity
Life Insurance
Term Life Insurance |