Term insurance generally offers the largest insurance protection for your premium dollar. It generally does not build up cash value. You can renew most term insurance policies for one or more terms, even if your health has changed.

Can your life insurance premium change?

Term life insurance premiums may change over time in accordance with changes in the policyholder’s health and age. However, some term life policies may advertise premiums at a guaranteed rate, meaning that the policyholder’s premium will not change during the period of time outlined by the provider.

Does term life insurance have a time limit?

Among insurance policies, term life insurance guarantees payment of a stated death benefit if the policyholder dies within the stated term period. Term periods may last anywhere from a year to 30 years.

Why did my term life insurance premium go up?

The longer the term period, the higher the premium because the older, more expensive to insure years are averaged into the premium. At the end of the term period, your premium can increase dramatically.

When to convert a term life insurance policy?

Some companies only allow conversions of your term life insurance policy on a Period basis. This means that you have a specified window in which you can convert your policy to a permanent life insurance policy. Typically these periods are within the first 5 years after the policy has been issued.

What happens when term life insurance policy ends?

You can keep paying premiums after your term period, but the rates will have gone up significantly. Insurance agents with your best interest in mind, will usually keep you away from having to do things that way. This is one of the reasons that we always recommend a longer term if there’s no foreseeable reason that we’d want our policy to end.

When to apply for reinstatement of term life insurance?

If your policy lapsed but you still want to be covered, you can apply for reinstatement. Each company has its own guidelines for reinstatement but most will allow you to apply up to five years from the end of the policy’s grace period.