Renewable Term
The different categories and structures of life insurance products.
What Is Renewable Term?
A renewable term life insurance policy includes a provision allowing the policyholder to renew coverage at the end of each term period without providing new evidence of insurability. Premiums at renewal reflect the insured's attained age at the time of renewal and increase with each renewal period. The most basic form is annually renewable term (ART or YRT), where the policy renews every year. Longer level term policies (10, 20, 30 years) may also include a renewable feature at expiration. While the guaranteed renewability protects insurability regardless of health changes, the rising premiums at older ages can make extended renewal costly — making conversion to permanent insurance often a better strategy.
Nevada Context
Nevada term policies typically include a guaranteed renewable provision with defined maximum renewable ages (often 70 or 80). Nevada consumers should confirm the renewable age limit and premium schedule before purchasing.
How It Affects You
Guaranteed renewability ensures you cannot lose coverage due to health changes. However, the premium increase at renewal can be significant — particularly at older ages. A conversion privilege often provides a more cost-effective path to continued permanent coverage.
Renewable Term in Practice
A Nevada policyholder's 20-year level term policy expires at age 62; she renews for one more year at the guaranteed renewable rate — an illustrative $320/month compared to her prior $95/month — while she evaluates permanent options.
Dollar amounts shown are illustrative. Actual amounts vary by carrier, applicant age, health status, and individual underwriting.
Related Glossary Terms
Related Resources
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