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There is a variety of term life insurance, but Houston TX renewable term life insurance has a valuable feature. Per the name, renewable term life policies are renewable. The specifics will depend on the policy, but they all are renewable when the end of your term policy arrives.
Whether or not this type of policy is right for you will depend on your situation. With renewable term policies, you will want to take into account the future along with your present situation. Your decision will take several factors into account, so you should know all your options before choosing.
If you have questions, discuss with any of the experts with Best Life Insurance Houston Agency. They’re more than happy to alleviate any concerns you may have about the right life insurance for you and your family.
Houston TX Renewable Term Life Insurance in a Nutshell
In essence, term life insurance is the simplest to understand among the various types of life insurance. It’s temporary life insurance, lasting anywhere from a year to a few decades. The specific period of time, a term if you will, will depend on the policy, but the endpoint is that it won’t last your lifetime.
It’s one of the affordable options if you want sufficient coverage for a low price. Of course, that’s the price initially. Depending on the options, the cost of insurance may rack up to be more than some types of permanent life insurance in the long term.
Now, since term life insurance is temporary, there aren’t many benefits to it. It’s one of the reasons why it’s cheaper than permanent life insurance plans like whole or universal life insurance. Other than the guaranteed death benefit, you won’t get much else out of the policy.
In the worst-case scenario, you pass away during the term, and your dependents will receive the death benefits tax-free. In the best case, nothing happens. No one gets the death benefit, and you’ll have to decide what to do with your policy. Generally, you’ll have three options: allow the policy to expire, convert it, or renew it.
If you didn’t want any more coverage or don’t mind shopping around again, you can allow the policy to expire. Doing so is usually an option if you’re still in relatively good health by the end of your original policy. If you know most medical exams won’t bar you from the insurance plans you want, then you’ll probably be fine.
However, the future is unknown. You won’t know if your health will deteriorate before the end of the term. In that case, most people will want the option to convert or renew their policies.
Renewable Term Life Insurance
Like other term life policies, renewable term life plans only last for a short amount of time. Usually, a term is either one year or five years. At the end of the period, you’ll be able to renew the policy.
One of the better benefits of renewing your policy is that you’ll be able to keep the original value amount of the first policy. Not to mention, every time you continue it, you won’t need to go through the application process again. That includes not having to go through the hassle of a medical exam to prove insurability.
Renewing the policy can bring about peace of mind. Who wants to worry about not having life insurance? Renewing your term policy can save you the trouble of thinking about it. And if you’re okay without life insurance, you can stop renewing the policy and letting it expire.
However, even if it starts relatively inexpensive, it can get pricier later. Every time you renew the policy, the insurer will reassess the premium. That usually means that it’ll increase in price as you grow older.
You also won’t be able to renew your policy indefinitely. Usually, it’ll only last until you reach a predetermined age. Once you get to that wall, you’ll have to figure out another option. After all, Houston TX renewable term life insurance policies cannot directly convert to a different type of plan.
The Difference Between Renewable and Convertible
Renewable and convertible term life policies are often confused. Yes, they’re both policy options that pertain to what you can do before your term policy expires. No, usually, you can’t do both.
As explained earlier, renewable policies allow the policy to be renewed after the policy expires. Usually, it’ll only last either one year or five years. The premiums will increase each time you continue it. You can’t change the type of insurance it is.
On the other hand, Convertible life policies allow you to change your term policy to a type of permanent life plan. The exact permanent life options will depend on the company, but usually, you’ll be able to change your term life policy to a whole life plan. In some cases, you may even be able to convert it to a universal life plan.
Usually, there’ll be a window during the lifespan of your term life policy. If you decide to change to a permanent life plan within that window, you can. Then your term will extend to your lifespan, along with the addition of amassing cash value.
You can’t renew convertible policies. Continuing it would become redundant anyway, considering that the protection won’t leave you until you die.
Should you get renewable term life insurance?
Renewable life insurance is optimal for a few reasons. If you acquired medical conditions in your term’s duration that would make it challenging to get another life insurance plan, renewable policies would allow you to still have coverage without minding that. Maybe you encounter a situation where your policy is more expensive than a renewable policy, or you can’t get insurance due to your age; then renewable policies will work for you.
This type of term life policy is excellent for short-term needs since they grow more expensive in the long run. If you think renewable life insurance is good for you, you should discuss it with an insurance agent. Contact the experts with Best Life Insurance Houston Agency regarding Houston TX renewable term life insurance plans.
Houston, TX Fun Facts:
- Treasure hunters take note: There is a ceramic case buried somewhere in Houston that contains a key. This key is said to be redeemable for gemstones in New York. Of course, I didn’t tell you this.
- Torchy’s Tacos has a secret menu. On it, there are items called “The Hipster,” “The Mad Cow,” and “The Ace of Spades,” which is a Jalapeno sausage link with grilled brisket, a fried egg, green chile queso, cilantro, cotija cheese, sour cream, mixed cheese, and diablo hot sauce served on a flour tortilla.
- There is a burping bubble—that’s right—in the Buffalo Bayou, underneath the Preston St. Bridge. It is operated by a nondescript red button in a tower on the bridge, just begging to be pressed.
- For more fun facts, visit the official Houston website.