Renewable term life insurance is a policy that gives the policyholder the option to extend their life insurance coverage beyond the period specified in the insurance contract instead of buying a new policy. In most cases, the price of the premium for the extension will increase.
Renewable term life insurance can be a provision in a life insurance. Its advantage is that, regardless the health status of the policyholder upon the maturity of the policy, they can avail themselves of the coverage of the same policy by prolonging its term.
The policyholder's health status is, however, going to be evaluated again. The result of the evaluation will usually dictate the price of the premium. If the policyholder bought the policy when they were thirty and they are fifty years old when it matures, there might be some new health issues that will increase the price of the premium. Nevertheless, even if the price of the premium increases, the amount of coverage stays the same.
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