Renewable Term: A renewable term life insurance policy allows you to extend your coverage for an additional period without having to requalify for coverage, provided that you have paid your premiums in full and on time. Being able to renew your policy can be an important advantage if your health has declined since your original purchase. That’s because another insurer might refuse to sell you a policy or might charge more for comparable coverage. Renewable term policies do not guarantee the same rate for the new coverage period. In fact, at each renewal, the cost is likely to increase to reflect the fact that you’re older and therefore pose a greater risk to the insurer.

 

Related Words

Renewable Term: A renewable term life insurance policy allows you to extend your coverage for an additional period without having to requalify for coverage, provided that you have paid your premiums in full . . . View Full Definition

Short-Term Borrowing: A bond mutual fund holding short to intermediate-term bonds that have maturities of three to five years.

Short-Term Debt: Liabilities that represent money borrowed from banks or other institutions to fund the ongoing operations of a business that will come due within one year.

Short-Term Disability: An injury or illness that keeps a person from working for a short time. The definition of short-term disability (and the time period over which coverage extends) differs among insurance comp . . . View Full Definition