Prices Increasing soon Prices Increasing Soon

Which Type of Term Insurance is Renewable?

Term insurance is touted as one of the most cost-effective insurance schemes in the present times. Couple that with a renewable term insurance plan, and you have yourself a comprehensive long-term protection plan in place. A lot of the term insurance policies come with the renew-ability clause that allows one to rebuild the original coverage for an extended period.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

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

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

Types of Term Insurance

To understand which types of term insurance are renewable, it is important to first identify all the variants available. 

  • Level Term Insurance – This is the most commonly bought term cover wherein the coverage amount remains fixed for the entire duration of the policy.

  •  Increasing Term Insurance – The sum assured increases by a specific percentage on an annual basis against a constant premium amount. The premiums are usually found to be higher for such plans. 

  • Decreasing Term Insurance – The sum assured on death decreases each year as the financial obligations of the life assured decrease. The sum assured decreases in line with EMI/mortgage payments. 

  • TROP (Return of Premiums) Plan – It is the only kind of term insurance that comes with maturity benefits in the form of the return of total premiums paid if the life assured survives the policy term.

Now, let’s look at the types of term insurance that are renewable.

Renewable Term Insurance

A standard term insurance policy offers financial protection against the death of the life assured. On the death of the policyholder before the end of the policy tenure, assigned nominees receive the sum assured on death that they can use to fund future needs. 

Renewable term insurance is exactly like a standard term insurance cover, except with the provision of extending the cover at the end of the policy term. Such policies are a popular choice because the purchase of a new policy ends up costing more owing to age and health-related factors. However, renewing your existing cover does not require you to re-qualify for new coverage and therefore costs less.

Which Types of Term Insurance Can I Renew?

If you want to know which types of term insurance are renewable, the answer is nearly all of them, including level term insurance, decreasing term insurance, increasing term insurance. It is important to note that renewability is a defined benefit and is not an in-built feature. For instance, one insurer's level term insurance policy may feature this benefit while similar plans by other insurers may not.

It is important that you carefully review the policy brochure and check if the policy comes with this particular provision.

It is also important not to confuse term insurance renewability with a convertible term plan. While the former extends the existing term life cover, the latter allows one to switch between different types of plans. Renewability does not allow you to change your existing term cover to, say, a whole-life insurance cover or an endowment policy, or a ULIP. 

Important Points to Note Before Renewing any Type of Term Insurance Policy

  • Not all term insurance plans come with the provision for renewability. Every insurer has set different criteria, and, therefore, the specificities need to be clarified with the insurer itself.

  • Renewability does not allow you to convert your term insurance cover to a different kind of covers such as whole-life or ULIP or any other.

  • Renewal is only allowed till the policyholder reaches a specific age. Mostly, the maximum age limit has been set at 80, following the completion of which one cannot renew their policy.

  • A term insurance cover can only be extended if the policy brochure mentions the provision for renewability.

  • While the renewal of a term policy does not require one to undergo a medical evaluation, the premium amount might increase based on the age of the policyholder or newly acquired medical condition.

Should You Choose Renewable Term Insurance Policies?

If you are in your 20s, 30s, or 40s, it will make a lot of sense for you to invest in term insurance policies that come with the renewability feature. Suppose you are a 40-years-old male with a term insurance cover for 20 years. Should you survive this policy term, it is likely to be difficult for you to get a new term insurance cover at the age of 60, given the rise in health complications with age.

At this stage, a renewable term insurance policy is your safest bet and the most economical option. You will not be asked to offer any medical undertakings, which eliminates the risk of high premiums to an extent.

Choosing a type of term insurance that is renewable is also a smart choice as it is a short-term investment and, therefore, allows you time to plan your long-term requirements. 

Summing Up!

If you have budget constraints, renewable term life insurance is a good option because the premiums are generally lower than a standard term cover. It is also a temporary solution for someone who is not ready to commit to a long-term protection plan. Specifically, one-year renewable term plans are the most convenient as it allows you to revisit your life insurance needs every year and change your preferences accordingly.


Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
16 Apr 2024

Term Life Insurance in Haryana 2024

Haryana, meaning Forest Land of Hari, is an Indian state that

Read more
16 Apr 2024

Term Insurance for Maharashtra

Maharashtra, a state filled with lively cities and beautiful

Read more
11 Apr 2024

Government Term Insurance Schemes 2024

The Government of India is committed to the welfare and

Read more
03 Apr 2024

How Policybazaar Helps With Dedicated Claim Assistance

Mr. Kumar has been working with a Public sector bank in Delhi.

Read more
19 Mar 2024

Kotak Term Insurance Login

Kotak Life Insurance is one of the leading insurers offering a

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
20 Aug 2014

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL