If you have a term life insurance policy and it’s about to end then you may have many questions about this. Like, can I renew a 10-year term life insurance policy?
Yes, you can renew your policy. But not all of the term policies are renewable. There might be changes and new conditions if you renew your policy. The changes will depend on your present life condition.
When your 10-year term life insurance policy will end you must think of renewal. But before you step ahead you must know about the renewal, whether it will bring you benefit or loss.
You can renew your term life insurance policy by extending it year by year when your policy is about to end.
Is a 10-year term life insurance policy renewable?
The term life insurance policy mostly covers 10, 20, or 30 years. But what if you want to continue your policy?
Can you renew a 10-year term life insurance policy? Yes, it is renewable. Many companies even offer renewal just before the policy ends. But many things can affect the renewal process and it is not always assured.
The number of premiums you pay might also change. Because your age will be different from the 1at time you get the policy. And with age premiums change.
Why should I choose a 10-year life insurance policy?
There are many ways why you should choose 10 years of a life insurance policy. Some are given below:-
1// You are a grown-up person with financial responsibilities
Maybe your policy has matured and you are aged now. Maximum insurance companies don’t sell policies after a person’s certain age. So maybe you can’t get a new one if you are aging. So getting a 10-year term life insurance policy is a better option.
2// You have shorter-term life insurance needs
When you have a family who needs support if you die early, a 10-year term life insurance policy is the best option for you. You can ensure your family’s financial stability in a shorter period with this policy. Your family will get the death benefit from this policy.
3// You are a smoker and thinking about quit
Actually, people who smoke have to pay one or two times more than a nonsmoker. So if you are a smoker and trying to stop smoking then you should make a short-term insurance policy before going for a whole life insurance policy.
4// You had a change in career
Your life insurance can be your replacement for lost income. If you need to step away from your career to look for your family then ten-year life insurance can give you financial protection.
Are there any disadvantages if the policyholder fails to renew the policy?
1// It defeats the purpose of insurance:-
The major drawbacks of the failure of renewability are that the coverage of the policy will lapse. If any eventuality happens during this period then the policy won’t stand and for that, the beneficiary won’t get any benefit from the policy. You need to shield the financial future of your dear ones. So put all efforts to renew the policy as soon as possible.
2// You lose out on tax benefits:-
Insurance is the best way to save for financial support for your family in your absence. It is also considered an investment and saving instrument. They also offer tax benefits. That’s why, if you can’t renew, your policy will fall, and no tax benefit you will get on your policy.
Before doing something you have to plan or think about the future. So on about an insurance policy. When you are purchasing the policy you must check and know about the policy well, not every kind of term life insurance policy is renewable.
The policyholder will be delivered the same sum insured value and entire life coverage as the present policy.
A maximum life insurance company, allows its clients to renew their policy till a certain age. Most of them won’t allow you to renew if you are 80 years old or over.
Giving financial protection to your family is important. That’s why you need an insurance policy. Insurance companies give a guarantee for your financial support. That’s why it’s necessary to continue your life insurance policy without any interruption.
If you are afraid of the fact that you have to go through a lengthy process to renew your policy. Then you don’t need to bother. You can effortlessly renew your insurance policy online.
What is the difference between extending and renewing a term life insurance policy?
There is a slight difference between renewing and extending the policy. The main difference is timing. You can extend your policy anytime while it is still functional. But if you want to renew your term life insurance policy, you have to wait till it is about to end. In both extending and renewing processes you might be allowed to change some conditions of the policy.
Do I have to take the medical test to renew my term life insurance policy?
If you want to renew your term life insurance policy you don’t have to take a medical test. A medical test isn’t necessary to renew an insurance policy. Without any medical test or asking about your medical history your policy will be renewed. But you might pay a higher premium after renewal.
Can I renew the 10-year term life insurance policy? Yes, almost all kinds of term life insurance policies are renewable. But some policies can’t be renewed. Because they have a specific time coverage and that can’t be renewed.
When your insurance policy date is almost over you have to decide whether you want to renew it or apply for a new policy. You need to make your decision faster. Once the policy date is over you will have very little time to renew your policy.
If you hold your decision and think about the renewal later, you have to start the process again. You must have to fill out the application paper and do the medical test too. So don’t forget or delay renewing your life insurance policy, it’s said that” caution is better than cure”.