Definition of Renewable term:
In the context of a life insurance contract, 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), this type of insurance is usually in the beneficiary's best interest.
A renewable term is a clause in a term insurance policy that allows the beneficiary to extend the coverage term for a set period of time without having to re-qualify for new coverage. A renewable term is contingent on premium payments being up to date, as well as a renewal premium being paid by the beneficiary.
Refers to a term life policy that may be renewed without the insured having to provide evidence of insurability.
How to use Renewable term in a sentence?
- With renewable term, coverage can be extended even if the insured's health has declined, but the new premiums will reflect their older age.
- Renewable term refers to a clause in many term life insurance policies that allow for its renewal without he need for new underwriting.
- Renewable term life will often have some limit at which point renewal is no longer an option, such as until age 70.
Meaning of Renewable term & Renewable term Definition