What Does Re-entry Term Insurance Mean?
Re-entry term insurance refers to a policy that has a low premium for a specific period of time, but is renewable only if the insured passes a medical examination after that specific period has passed. Renewing the policy when the insurer has failed the medical exam raises the price of the premium.
Insuranceopedia Explains Re-entry Term Insurance
This was the answer of the industry in the 70s for less expensive life insurance. Policyholders pay for inexpensive premium for a while and then re-entry to the policy means taking a medical exam and paying more should he or she fails the exam. Of course, the renewal period is at the time when the policyholder has also aged and therefore likely to have acquired challenges to his or her health. In other words, what starts out as cheap insurance can end up being expensive.