Meaning of Renewable and Convertible for Term Life | 1 - Minute Insurance wisdom Ep 49

Most term insurance policies are renewable term policies that allow you to extend your insurance for additional years without undergoing another medical exam. This is a policy that would come in handy for someone that becomes uninsurable during the span of the policy. If you knew that your health was going to be far worse in a year, you wouldn’t have to worry about meeting the required criteria.

All that being said, your current policy will renew once term chosen is finished. It definitely renews at a higher rate after the initial term is over, but the good news is that you do not need to worry about any of medical or financial underwriting at the time of renewal.

Term policies are great because they are only for a limited amount of time. They provide a lot of flexibility, but they are also not permanent, which is where the real problem lies. Luckily, with convertible term policies, you will always have the option of making the policy permanent. And, you can do it without undergoing any medical exams or underwriting standards.