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Renewable Term Assurance
This type of Term Assurance gives you the option, at the end of the original term, to extend the policy for a further term, without the need for Medical Underwriting. The new premium will be based upon your age at the time you take up the option. This type of cover is initially relatively inexpensive, but the premium will be higher than for ordinary term assurance and could rise substantially at the time of renewal.
- Allows you to extend the insurance term when it comes to an end
- The premium you then pay is based on your health at the time you took out the original policy, even if your health has subsequently deteriorated
- A useful variation for dealing with the unexpected, such as a child who stays in full-time education for longer than you had anticipated.
This could also be a good option if you cannot, at present, afford the level of cover you need for the period you require. You could take out the cover you need but for a shorter period and, at the end of the period, you could take up your option for a further period. Premiums would then be higher because you would be older, but there would be no additional charge even if you had developed health problems.
Please be aware that in some cases this type of assurance is based on an assessment of the health of the applicant.