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What is renewable term insurance?
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Renewable term insurance is one in which the policyowner is allowed to renew his/her term policy, when it expires, for another term policy, irrespective of the insured's state of health at the time of renewal.
The premium payable is level during the term of each renewal and it will increase at the next renewal based on the attained age of the insured at the time of renewal.
Like all term policies, there are neither surrender values, paid-up values, loan values nor non-forfeiture privileges.
This relatively inexpensive form of insurance cover is useful for the following purposes:
- To provide life insurance cover for a short period
- To cover a loan
- To cover the needs of a family in the event of the premature death of the life assured, before a house mortgage is repaid, or while the children are young.
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