Life Insurance Guide | Insurance Help Product Information | Renewable Term Assurance

Some term assurances are ‘renewable’ in that, on the expiry date, there is an option to take out a further term assurance at ordinary rates without evidence of health, as long as the expiry date is not beyond, a set age, often 65. Each subsequent policy will have the same option, provided the expiry date is not beyond the limit set by the life office.

Thus, instead of purchasing a 20-year term assurance, a 45-year old many might by a five-year renewable term assurance policy, which gives him the option of renewing without further medical examination every five years.

Whenever the policy comes up for renewal the premium will increase, since it is based on the then age of the life assured. If the assured elects the option, the life office cannot normally decline it.