What is Renewable Term Insurance?

A renewable term life insurance is a regular term plan that allows you to renew your existing term plan after the end of the policy term without a requalification process. Most term plans come with a yearly renewable option. With these plans, you can pay the renewal premium amount every year and continue to enjoy the term coverage. At the time of renewal, you don’t have to undergo any medical examination or re-qualify for insurance. These plans offer guaranteed renewability. 

Read more
Get ₹1 Cr. Life Cover at just
Term Insurance plans
Online discount
upto 10%#
Guaranteed
Claim Support
Policybazaar is
Certified platinum Partner for
Insurer
Claim Settled
98.7%
99.4%
98.5%
99%
98.2%
98.6%
98.82%
96.9%
98.08%
99.2%

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

Get ₹1 Cr. Life Cover at just
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
We are rated
rating
58.9 million
Registered Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

How Does a Renewable Term Life Insurance Plan Work?

Let us understand this with an example:

Suppose a 25-year-old male has purchased a renewable term plan providing coverage till the age of 60. When the person turns 60 years old, he decides that he needs coverage for another 20 years. Now, the person has two options: either renew the existing term plan or purchase a new plan. In case the person buys a new term plan, the premium rate for the new policy would be way higher than the premium rate for the renewable term plan and he would have to undergo the verification process again. When the person renews his existing life insurance policy, he does not have to go through any verification process but just pay the increased premium and get coverage for an extended period.

one crore term plan
plus

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 16/day+

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day+

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day+

Benefits of a Renewable Term Life Insurance Plan?

Let us take a look at the benefits of renewable term insurance:

  • Family’s Financial Security

    In case of the policyholder’s unfortunate death during the policy term, the sum assured will be paid to the family of the policyholder.

  • Short Term Solution

    Purchasing renewable term insurance allows you to secure your family’s future for the short term without making a long-term commitment. You can extend the coverage duration if you need it in the future.

  • Lower Premium Rates

    The premium rates for a renewable term plan start low and increase gradually with each renewal. You can also use the term insurance premium calculator to determine the approximate premium rate for your desired policy.

  • Easily Renewable

    The biggest perk of term insurance renewal is that you can extend coverage without giving a medical exam or verification process all over again.

Who Should Buy Renewable Term Insurance?

Here is a list of people who can consider buying renewable term life insurance.

  • People looking for short-term coverage: People who want a short-term solution and do not want to purchase a term plan for a longer tenure can buy this plan to secure their family in the meantime.

  • Individuals uncertain about their retirement: Today a lot of people are uncertain about their retirement age. Some continue to work into their 60s and 70s whereas others opt-out at the age of 50. A person can increase the plan tenure in case they continue to work for a longer term.

  • People with a low budget: In case the premiums for a traditional term plan is unable to fit in your budget, you can purchase a renewable term plan and can get covered for as long as you want.

  • Individuals with improving health: If you are working on your health and have faith that in a few years, you can get healthier, then a renewable term plan might be a good temporary option for you. You can stay covered under the plan until you get healthy and buy a new term plan later.

one crore term plan

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @ ₹449/month+

Get an online discount of upto 10%+

Compare 40+ plans from 15 Insurers

+Standard T&C Applied

Renewable and Convertible Term Life Insurance: Difference

Renewable term life insurance is often mistaken for convertible term life insurance because of their minute similarities. Both types of plans increase the policy duration, but while a renewable term plan only increases the coverage for a limited period, a convertible term life insurance converts your current term plan into a whole life term plan i.e., provides coverage till 99/100 years of age.

Both plans do not require you to reverify your profile or clear your medical exams again. It is important to note that a renewable term plan cannot be converted into a whole life term plan, but a convertible term plan can be switched into whole life at any point.

Final Thoughts

A renewable term plan offers several advantages like low premiums, short-term coverage, and the option to save on yearly taxes. Young individuals or people with low income who do not want to make a long-term commitment can buy a renewable term life insurance plan online by comparing plans from different insurers.

Different types of Plans


Term insurance articles

Recent Articles
Popular Articles
Which Companies Provide Tele-Medical Checkups for Term Insurance

28 Mar 2023

The top term insurance companies have started telemedical
Read more
How You Can Increase the Cover Amount of Term Insurance?

28 Mar 2023

A Term plan is a simple and affordable type of life insurance
Read more
Points to Consider Before Buying Term Insurance for NRIs

23 Mar 2023

The NRIs living outside India prefer buying term insurance in
Read more
Reduced Paid-up in Term Insurance

23 Mar 2023

Term insurance is one of the most affordable ways of securing
Read more
Bharti AXA Flexi Term Pro

23 Mar 2023

Bharti AXA Flexi Term Pro is a comprehensive protection plan that
Read more
LIC Term Insurance 1 Crore
LIC of India offers various plans to help you secure the financial future of your loved ones. In order to make
Read more
What Medical Tests are Required for Term Insurance?
Term insurance offers a sum assured to the beneficiary of the policyholder upon their death that can help them
Read more
2 Crore Term Insurance Plan
The pandemic has surely generated a global panic and emphasised the importance of financial planning that would
Read more
Types of Deaths Covered and Not Covered by Term Insurance
A term insurance plan is the best way to ensure the financial well-being of your family members in case of any
Read more
Term Insurance: Tax Benefits under Section 80D
Term Insurance provides financial security and protection to your family in case of your unexpected death within
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL