Renewable term life insurance lets you extend your coverage without a medical exam when your initial term ends
A renewable term life insurance policy includes a built-in option to renew for another term — usually one, five, ten, or twenty years — without having to prove you are still in good health. When your current term is about to expire, you can simply pay a new premium and keep the same coverage in place. You do not need to answer health questions or undergo medical underwriting again.
This is different from a policy without renewal rights, where your only option at the end of the term is to apply for a brand new policy from scratch, which means a full medical exam and potentially higher rates if your health has changed. Renewal is a feature you pay for in your premium — it costs more than a non-renewable term policy — but it protects you against being denied coverage or facing much higher rates later.
Key Takeaways
- Renewable term policies let you extend coverage at the end of your term without a medical exam, though the new premium will be higher than your original rate.
- The insurance company sets the new premium based on your age at renewal, not your health status, so the increase is predictable even if your health has declined.
- You must renew before your current term expires — once it ends, you lose the right to renew without reapplying for a new policy.
- Renewal premiums are may provide in your original policy documents, so the company cannot charge you more than the rate schedule says, even if you have developed a serious illness.
- Some policies let you convert to permanent life insurance (whole life or universal life) during the renewal window, locking in rates based on your current age rather than reapplying.
How the renewal premium is calculated
When you renew, your new premium is based on your age at the time of renewal, not your health. The insurance company uses an age-based rate table that was printed in your original policy. If you are renewing at age 50, you pay the rate for a 50-year-old — regardless of whether you have developed diabetes, heart disease, or any other condition since you bought the policy.
This is the core protection of renewability: your health status does not matter. The trade-off is that your premium will be significantly higher than it was during your first term. A policy that cost $40 per month at age 35 might cost $80 or $120 per month when you renew at age 45, because the risk of death increases with age. The exact increase depends on the rate table in your policy and how many years have passed.
You can find the renewal rates in your policy documents — usually in a table labeled "may provide Renewal Rates" or "Rate Schedule." If you cannot locate it, call your insurance company and ask them to send you the renewal rate table for your specific policy. Knowing this number in advance helps you decide whether to renew or explore other options before your term ends.
The deadline for renewing and what happens if you miss it
Your insurance company will send you a renewal notice 30 to 90 days before your term expires, depending on your policy and state law. This notice tells you the new premium, the renewal deadline, and your options. You must submit payment and any required paperwork before the deadline to keep coverage in force.
If you miss the deadline, your policy lapses and you lose coverage. You cannot simply pay late and pick up where you left off. Once the term ends, you no longer have the right to renew — you would have to apply for a brand new policy, which means a full medical exam and underwriting. At that point, any health changes since you bought the original policy will affect whether you are approved and what rate you pay.
If you know you want to renew but are not sure about the cost, contact your insurance company before the deadline. Some companies offer payment plans or will give you a few extra days if you ask. It is better to ask than to let the policy lapse by accident.
Comparing renewal to buying a new policy
When your term is about to end, you have two main choices: renew your existing policy or apply for a new one. Renewal is automatic and requires no medical exam. A new policy means starting over with underwriting, but the premium might be lower if your health is still good and rates in the market have dropped.
| Renewal | New Policy |
|---|---|
| No medical exam | Full medical exam required |
| Premium based on age at renewal | Premium based on current health and age |
| may provide approval | Approval depends on health underwriting |
| Higher premium than original term | May be lower if health is good and rates have dropped |
| No waiting period | Coverage begins after underwriting (typically 2–4 weeks) |
If you have developed any health condition — high blood pressure, diabetes, cancer history, or anything else — renewal is almost always the better choice. You pay more, but you are may provide coverage. If your health is still excellent and you want to shop around, getting quotes for a new policy makes sense, but do this before your current term expires so you have time to compare and apply.
Converting to permanent insurance during renewal
Many renewable term policies include a conversion option, which lets you switch to whole life or universal life insurance during the renewal window without a medical exam. Conversion is different from renewal: you are not extending the same term policy, you are changing the type of insurance entirely.
The advantage of converting is that permanent insurance builds cash value and never expires as long as you pay premiums. The disadvantage is that the premium is much higher — often three to five times what you pay for term. Conversion locks in your rate based on your age and health status at the time of conversion, so if you have developed a serious illness, converting before your term ends protects you from being denied permanent coverage later.
Conversion rights are usually available only during a limited window — often 30 to 60 days before your term expires, or sometimes for a year or two after. Check your policy documents to see when your conversion window closes. If you think you might want permanent insurance, do not wait until the last minute to explore this option.
What to do before your renewal date arrives
Start planning at least three months before your term expires. Request your renewal rate quote from your insurance company — they can tell you exactly what your new premium will be. Compare this cost to your budget and to quotes from other companies for new policies.
If the renewal premium is too high, you have options: you can reduce your death benefit to lower the cost, you can shop for a new policy with a different company, or you can let the policy lapse and go without coverage for a period (though this is risky if you have dependents). If you think you might want to convert to permanent insurance, get a quote for that as well.
Keep your renewal notice in a safe place and mark the deadline on your calendar. Set a reminder for two weeks before the deadline so you have time to make a decision and submit payment. If you have questions about your renewal options, call your insurance company — they can walk you through the numbers and explain what each choice means for your coverage.
Frequently Asked Questions
Can the insurance company refuse to renew my policy?
No. If your policy includes a renewal option, the insurance company must renew it as long as you pay the premium by the deadline. They cannot deny renewal based on your health, age, or any other factor. The only reason they can refuse renewal is if you have not paid premiums on time or if your policy has lapsed.
Will my renewal premium stay the same as my original premium?
No. Your renewal premium will be higher because it is based on your age at renewal. The exact increase depends on how many years have passed and the rate table in your policy. A policy renewed at age 50 costs more than the same policy at age 40, even if nothing else has changed.
What if I cannot afford the renewal premium?
You can reduce your death benefit to lower the cost, or you can shop for a new policy with a different company that may have lower rates. Some companies also offer payment plans. If you do nothing, your policy will lapse and you will lose coverage. Once it lapses, you cannot renew — you would have to apply for a new policy with a full medical exam.
Can I renew if I have developed a serious illness since I bought the policy?
Yes. Renewal does not require a medical exam or health questions, so your illness does not affect your right to renew or your renewal rate. This is one of the main reasons people choose renewable term policies — it protects you if your health changes.
What happens if I miss the renewal deadline by a few days?
Your policy will lapse and you will lose coverage. Most insurance companies do not allow late renewal — once the deadline passes, you no longer have the right to renew. You would have to apply for a new policy, which requires a full medical exam and underwriting. Contact your company immediately if you miss the deadline; some may offer a short grace period, but do not count on it.